GAP 360 LTD.
Situation Analysis
BUS3053: MANAGEMENT CONSULTANCY PROJECT
1 Contents Page
1 Contents Page. 2
2 Introduction. 3
3 PESTEL Analysis. 3
3.1 Political 3
3.2 Economical 3
3.3 Socio-cultural 4
3.4 Technological. 4
3.5 Environmental 4
3.6 Political 5
4 Porters Five Forces. 5
4.1 Potential Entrants. 5
4.2 Substitutes. 5
4.3 Suppliers. 5
4.4 Buyers. 6
4.5 Competitive Rivalry. 6
5 SWOT Analysis. 6
6 Summary and Conclusions. 7
7 List of References. 8
8 Appendices. 9
8.1 Appendix 1. 9
8.2 Appendix 2. 10
8.3 Appendix 3. 10
2 Introduction
Gap 360 is a travel company based in Kent whose aim is to make gap year travel
affordable for a wide range of young travellers. They offer travel opportunities ranging
from fun and adventure trips or round the world travel to both paid and voluntary work
abroad in teaching, wild life and conservation or many others. They currently offer travel
to over 50 countries and this figure is increasing each year.
The following report is a situational analysis on Gap 360 with an assessment of the factors
affecting them in respect of their position within the gap year travel market. It will also
identify factors that can have an influence on them within the macro and micro
environment as well as the gap year travel market in which they operate.
3 PESTEL Analysis
When analysing the macro environment there are several tools an organisation can use to
assist, the most common of which is the PESTEL framework (appendix 1). A PESTEL
analysis categorises the environmental factors into political, economic, socio cultural,
technological, environmental and legal influences on an organisation. For managers, it is
important to analyse how these factors are changing now and how they are likely to change
in the future drawing out implications for the organisation (Johnson et al. 2008). Analysing
these factors can result in long and complex lists, so Johnson (2008) goes on to state that it
is important to eventually step back and identify the key drivers for change. These key
drivers for change are defined as the environmental factors that are likely to have a high
impact on the success or failure of strategy. Although Gap 360 competes for customers
primarily within the U.K, they operate with suppliers on a global scale and thus the
analysis will reflect this.
3.1 Political
Political instability – could have a negative effect on the tourism industry of that country in
