Portugal nanny app PESTLE and SWOT analysis
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The report analyzed the external and internal environment of the childcare service market. Using the PESTLE analysis, the report examines challenges that are likely to impact a startup in the childcare industry and opportunities that the startup can leverage to launch a successful business in the growing market. SWOT analysis was used to study the startup’s strengths and weaknesses and how the company would use its strengths to mitigate external threats and its inner weaknesses in order to leverage external opportunities. Porters five forces analysis was used to examine the competitive environment and assess how it would impact the startup’s revenue and profitability.
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PESTLE AND SWOT ANALYSIS OF A NANNY APP Case Study
Key Learning Outcomes
By the end of the case, students should be able to:
- Understand the internal and external environment factors in the childcare industry and how they will impact the nanny app
- Apply strategic tools including PESTLE, SWOT and Porters five forces to a real company
- Use a company's inner strengths to mitigate its inner weaknesses, and external weaknesses
1.0 INTRODUCTION
Childcare services industry which includes au pairs, child minders, carers, nannies among other workers is one of the fastest-growing sectors globally. In fact, the global childcare service industry was forecast to grow from $339 billion in 2018 to $520 billion in 2022, growing by 22% (The Business Research Company (2019). Among EU countries, Netherlands has the highest use of the service at 60%, followed by Romania, Greece, Slovenia, Slovakia, Poland, Cyprus and Portugal, where more than 40% of children received informal or private care (European Union 2018).
Almost two-thirds (65 percent) of mothers with children under 6 work outside of the home in the US while in the UK, working-age mothers in paid work have risen up from 50% in 1975 to 72% in 2015 (Roantree and Vira 2018). Similarly, in Portugal, 60% of children live in families where both parents work more than 20hrs per week and like many western European nations, Portuguese working mothers are also increasingly returning to work after childbirth rather than staying at home to look after young children. In fact,70% of Portuguese mothers of children under 6 were employed by 2009 with only 10% of these working part-time (SIRC 2012).
Source: World Economic Forum (2016)
However, as shown in the figure above, UK families spend the most on childcare, followed by New Zealand, Ireland and United States. This makes UK a region to target for nanny and babysitting services.
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