- Published: September 27, 2022
- Updated: September 27, 2022
- University / College: University of California, Santa Barbara (UCSB)
- Language: English
- Downloads: 27
Political factors
There are no specific political factors for Wupti. com, other than the general factors that concern all companies in Denmark. This is taxes, VAT and future changes in the fiscal policy. If taxes went up, causing the price of the products Wupti. com supply to rise, then the demand would go down as the crisis unfortunately has made the Danes save their money due to a financial insecurity in general.
Economic factors
As the market in general has been in decline for the past 3 years, and the company has existed since 2008, then the financial aspects in the company have been quite turbulent. When the company was launched in 2008, the economy in Denmark was overall quite progressive. Soon after that, Denmark (and many other countries) experienced a recession due to the financial crisis. This made people save their money, rather than spending it right away. This made (according to their ROI and ROE) their sales to go down. But as Wupti. com generally is dealing with white goods and electronics, which often is some of the most important elements in the average household, then Wupti. com is not as affected as other companies are.
Social factors
As this kind of shopping is a new phenomenon, that the average person has a lack of experience with, then the older generations are less likely to use Wupti. com. The older generations are more traditional in general, and are not as good at adapting new things into their everyday life as the newer generations. The older generations will sooner or later pass away, making the new generations (who have adopted the new technological trends) the older generations in the future. My conclusion to this is that Wupti. com’s market eventually will grow over the years.
Technological factors
As Wupti. com is an online-based shop, technology is a crucial element in terms of maintaining the business. 3 out of 4 Danish citizens with internet-access have tried to shop online. This adds up to approx. 65% of all Danish citizens between 16-89 years of age. This is a big market. The fact that it is possible to shop whilst at home also reaches people with disabilities, elderly people, or people who, for some reason, cannot shop in a regular shop. The convenience of this appeals to potential customers who generally are hard to reach due to their disabilities. Having an online-based shop minimizes the costs of fixtures and fittings, making it easier to lower the prices for Wupti. com.
Environmental factors
Wupti. com is partly owned by NRGI (an energy company), who makes sure that Wupti. com’s products are up-to-date when it comes to energy saving. This benefits both the environment and customers’ economy in the long run. The new trend concerning environmental friendliness definitely is a positive thing for Wupti. com, as many of their products (mostly white goods) are in ‘ energiklasse A’.
Legal factors
Wupti. com has been given the ‘ e-mærke’, because of their honest, professional and legally correct way of behaving online. E-handelsfonden stands behind e-mærket, and makes sure that Wupti. com follow markedsføringsloven, købeloven, persondataloven, forbrugeraftaleloven and e-handelsloven. They sample-check Wupti. com once in a while to ensure that they proceed to behave according to the law. There are also laws that either increase or decrease companies taxes according to their use of energy and energy-sources. As NRGI (who especially care about the environment and long-lasting energy sources) partly own Wupti. com, then it must be given that Wupti. com actively seek to minimize environmental taxes, which benefits everybody.
Conclusion
Wupti. com has taken advantage of the modern technology, which can be both risky and profitable. Risky because shopping online is a new phenomenon, which some people lack experience with, and therefor don’t see it as a ‘ safe’ way of shopping. Wupti. com is though ‘ e-mærket’, which guarantee the customer a safe, pleasant and completely honest experience while shopping
online. Wupti. com deals with newly developed products that hurt the environment way less than older products. This is appealing to customers, as newer machines are cheaper to run. Wupti. com mainly sell white goods and other technological products, which often is basic equipment in the average household, then I can conclude (based on their ROI and ROE during the recession) that Wupti. com was/is not as affected by the recession as other companies in Denmark.
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[ 1 ]. http://www. dst. dk/da/statistik/nyt/emneopdelt. aspx? psi= 707 [ 2 ]. http://www. wupti. com/Menu/Spar-paa-energien/
[ 3 ]. http://www. franchisehelp. com/industry-reports/green-industry-report [ 4 ]. http://nrgi. dk/om+nrgi
