The intended expansion of Thera Ltd and its entry to the UK and EU horticultural markets should be approached from the perspective of possible challenges. They are explicitly seen when applying a PESTEL analysis, which allows predicting the chances for the project’s success. Thus, the political factors present the main challenge deriving from Brexit, and the obstacles in this regard are the need to adjust to two different marketplaces with varying regulations.
The EU common market organization (CMO) rules do not apply to the UK. Hence, the acquisition of the latter’s license will be an extra task (“The withdrawal of the United Kingdom from the EU,” n.d.). This event implies economic complications expressed by growing costs and import prices for Ireland (Taylor, 2021). They are complemented by the worsening of the UK market conditions and the overall unpredictability of their development (“Economic implications of Brexit,” n.d.).
Social factors include the stable interest of customers in garden furniture and horticultural products (“The European market potential for garden furniture,” n.d.; ” What is the demand for fresh fruit and vegetables on the European market?” n.d.). Technological factors indicate a threat to expansion since other participants in the market are continuously developing their offers. The environmental concerns should be addressed because clients are leaning towards eco-friendly solutions (“The European market potential for garden furniture,” n.d.). Finally, the legal aspect implies the need for the EU assessment marking alongside the UK requirements (“Placing manufactured goods on the market in Great Britain,” n.d.). Thus, the success of expansion is greatly conditional upon the attention to these issues.
In conclusion, the proposed initiative for Thera Ltd to enter the UK and EU markets is expected to be profitable if the company manages to adjust its actions to the changing environment. The principal threats in this regard are posed by political and legal factors. The moderate obstacles can be economic, while the compliance with environmental and societal needs will serve as principal advantages.
Reference List
Economic implications of Brexit (n.d.). Web.
The withdrawal of the United Kingdom from the EU (n.d.). Web.
Placing manufactured goods on the market in Great Britain (n.d.). Web.
Taylor, C. (2021) We know Brexit will cost Ireland – but it brings big opportunities too. Web.
The European market potential for garden furniture (n.d.). Web.
What is the demand for fresh fruit and vegetables on the European market? (n.d.). Web.