Delticom SWOT and PESTLE Analysis

Strength

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Weakness

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Opportunity

1. Increasing internet penetration globally: The internet is rapidly growing as a sales channel and this has a major impact upon Delticom’s success. With number of internet users increasing, online shopping is also quickly picking up. The Global Digital Report 2019 has shown that around 4.4 billion people, amounting to almost 60% of the world's population, use the internet regularly, making it a 9.1% increase as compared to 2018. Internet usage is as high as 86% in Europe which is Delticom's core market. These high figures have led the dealer association Ecommerce Europe to forecast turnovers far more than the € 535 billion seen in 2018.

2. Investing in optimizing logistics processes: Products that are not currently present on the online trading platform are also likely to appear in the near future as product categories keep increasing. Efficient delivery systems, innovating in warehouse storage options, combining online and offline systems together, optimizing searches and adapting to changing purchasing patterns are all necessary for running a successful e-commerce business. Delticom has adopted a strategy of cutting costs by streamlining tyre replacement processes. A number of its acquisitions have been targeted towards improving its market leadership in Europe’s online tyre trade, and reclaiming cost leadership. Prices often fluctuate in this industry as transport services fight amongst themselves over pricing. This has made efficient logistics very important. Delticom too has invested significantly in logistic processes by increasing the number of its warehouses and reducing delivery charges. It is also looking into developing shorter delivery times and supply routes.

3. Strong potential in online automobile replacement parts market: The European replacement parts market has a current value of € 100 billion according to experts. The Freier Ersatzteilemarkt e.V. association (VREI) and the market research and consulting company 2HMforum has conducted a study recently which showed internet penetration of 4-5-% in Scandinavian countries and France and 8% in Germany. These figures are however expected to go up by 18% in the near future. Delticom is already distributing selected automotive replacement parts and accessories online. Along with this, it is also fully utilizing its small items warehouse to provide customers with the replacement parts at optimal logistic efficiency. Increasing online trading will thus also benefit the company significantly and help its profits go up.

Threat

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Political

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Economic

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Social

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Technological

1. Moving towards a multi-dimensional customer experience: The range and depth of customer data insight will proliferate over the next 10 years. There will be more digital services, platforms and devices than ever before capable of generating data insights, including social media and messaging apps, location-based services, and online and mobile payments. The ability to leverage multiple data points to provide a contextual view of consumers will drive the evolution of predictive analytics, giving retailers models that will help them determine consumers’ likely future actions and needs. E-commerce players such as Delticom need to continuously invest in technology to maintain its competitive advantage and deliver the best-in-class customer experience.

Legal

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Environmental

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