Eataly is a food company that operates as a mass distributor. It was founded by Oscar Farinetti in the year 2007 with the “slow food” drive motivating the entrepreneurship. Eataly typically is a place where the consumer becomes aware of the food and gains knowledge about the historical and cultural connections of food displayed and sold there (Brusaferro et al., 2015). The consumer can buy the food products in the Eataly marketplace, eat at restaurants in the marketspace or learn about food in Eataly.
Eataly operates out of Italy. It was established after a 30-year period of significant economic growth for Italy (Ali et al., 2013). The location of Italy is opportunistic for Eataly. Italy is a hub in the Mediterranean Sea for such countries like Austria, France, Switzerland and Slovenia. It is a link for these countries with countries in Africa and Asia. The first store of Eataly was near the Lingotto Palace in Turin in 2007. In current times, Eataly has around 12 stores in Italy alone. There are two marketplaces in the United States and thirteen in Japan. There is one Eataly store in Turkey and Dubai. Eataly plans to open in Russia, too. For its international expansions, Eataly draws strength from the supporting points in the local environment. A PESTLE analysis would hence clarify some of the strengths and opportunities for Eataly.
Political and Legal Situation
The political environment of the country has been favorable for the development of the food industry, but there are persistent problems outside the industry such as organized crime threatens stability. According to the CIA world fact book, labor market conditions are also a threat. However, the Government intends to provide support through reforms and this is a positive point.
In terms of overall economic situation, it has been observed that the country’s GDP is tenth in the world, which is good. Its alliance with the European Union furthermore allows a freer trading within bloc partners, which improves economic condition. Economy is threatened partly by political situations. Economic improvements are not stable across all regions.
Southern Italian regions are comparatively underdeveloped in economic production compared to the Northern and Central Italy regions (Ali et al., 2013). Consequentially, the public debt is still high and the government focuses on taxation and budget reforms to address the situation.