The Auto Trader Group is a UK-based online marketplace that facilitates the purchase and sale

of both new and used cars (Auto Trader, 2023). Auto Trader was established in 1977 by English
businessman and car enthusiast John Madejski as a print publication. The journal advertised
everything at first, including homes, cars, and even aero planes, but it quickly shifted its
emphasis to only cars, and in 1988 it changed its name to Auto Trader. The publication became
very popular among people in the United Kingdom who were interested in buying or selling cars.
It provided a comprehensive list of cars that were available for purchase, including details like
make, model, price, and seller contact details (Auto Trader, 2023).

As internet access and prevalence rose in the late 1990s, the transition from print to digital
platforms for the publication begun (Auto Trader, 2023). When Auto Trader launched its online
platform in 1996, it was among the first businesses in the automotive classifieds industry to use
digital technology (Auto Trader, 2023). Compared to the traditional print media, this strategic
choice allowed the organization to increase the size of its target audience and offer more
involvement and dynamism.

Auto Trader has continuously improved its website by incorporating comparison tools, vehicle
assessments, and sophisticated search features. The organization attracted dealerships and private
vendors, which helped it rise to prominence in the online car sector.

Numerous ownership and organizational changes occurred at Auto Trader. Following United
News & Media's 1998 takeover of the company, the latter amalgamated with Trader Media
Group, a partnership established by Apax Partners and Guardian Media Group. Auto Trader
became a private company again when Apax Partners purchased the Guardian Media Group's
stake in Trader Media Group in 2014.

In 2015, Auto Trader Group plc completed its first public offering (IPO) and was subsequently
listed on the London Stock Exchange. An incredible accomplishment for the company was the
IPO's increased capital issue, which made it possible for its online marketplace to grow and
flourish.

Auto Trader did not stop there, Auto Trader continues to bring additional services to its target
market since it firmly believes in value addition (Auto Trader, 2023). Auto Trader unveiled
Retailer Stores, a tool that provides retailers with a customized online area, in April 2021. The
business unveiled Instant Cash Offer in August 2021 as a substitute for customers selling their
cars on their own. According to Auto Trader (2023), the offer includes a cash price that is "no-
haggle," free house collection, no hidden expenses, and immediate payment upon acceptance.

Thus, Auto Trader's evolution into the largest digital automotive marketplace in the UK may be
attributed to its founder's wider vision, which has allowed him to consistently grasp the shifting
dynamics of the modern world. Auto Trader started out as a modest print media business.

PESTEL analysis of Auto Trader

To understand and evaluate the macro environmental factors that could affect their operations,
organizations use a PESTEL analysis as a strategy framework (Ulubeyli et al., 2019). Political,
Economic, Social, Technological, Environmental, and Legal elements are often referred to as
PESTEL. Each of these components illustrates a category of external influences that might affect
an organization's operations, decision-making, and long-term strategy (Ulubeyli et al., 2019).

In order to stay competitive in the auto trading business, find growth possibilities, and maintain
regulatory compliance, PESTEL analysis is essential for car traders. PESTEL analysis, in its
simplest form, gives Auto Trader the ability to decide strategically how to match its activities
with the outside factors that have the potential to affect its company.
Political Environment: This is a reference to the political elements that have the potential to
greatly impact a corporation and its operations (Perera, 2017). Political stability or instability,
policy changes, industry support, and governmental fiscal, monetary, and trade policies are a few
of these variables (Perera, 2017). Auto Trader is becoming more vulnerable to the effects of
global external events because it operates in a connected and global business. Auto Trader may
be impacted by exogenous, unpredictable, catastrophic, and geopolitical events. Customers may
be unable to trade as a result of such occurrences, which could result in a loss of audience,
market share, income, and stock. Recent external factors that have had a negative influence on
the auto trade industry and still do include the following: i) shortages in supplies due to the
blockage of the Suez Canal; ii) Brexit; and iii) the military situation in Ukraine (AutoTrader,
2022).

Economic Environment: The most important elements for an organization's success are its
economics (Perera, 2017). According to Perera (2017), these variables include inflation, income
level, disposable income, tax rate, and exchange rates. Unfavorable economic conditions may
cause the market for new and/or used cars to contract, reducing the amount of stock available for
used cars and retailer wallets. These might lead to lower retailer profitability, which would then
cause advertising expenditures to decline or the number of retailers to decline. Additionally, it
might result in manufacturers spending less on digital display advertising. In the end, Auto
Trader may be impacted by all of these variables (AutoTrader, 2022).

Social Environment: Society’s culture and manner of doing things effect the culture of an
organization in an environment (Perera, 2017). When it comes to understanding the clients in a
certain market and creating a marketing message for consumers in the media sector, Auto Trader
Group Plc's marketers rely heavily on the shared values and attitudes of the populace. Social
factors such as population demographics and skill levels, class structures, social hierarchy and
power structures, culture (gender roles, social customs, etc.), and attitudes (health, environmental
conscience, etc.) can all have an impact on auto traders.

Technological Environment: Auto Trader is a digital company; hence its survival depends on
its IT infrastructure. A large disruption to the services it offers could result from a disruptive
event that causes a significant amount of downtime for its current systems and IT infrastructure.
Not making the necessary investments in IT and security measures may also prevent the
company from meeting its goals for digital retailing.

Legal Environment: The regulatory environment in which the Group operates is complicated.
There is a chance that the Group or its affiliates won't follow these guidelines or react to new
laws, such as GDPR and the guidelines and recommendations of the Financial Conduct
Authority. This might have negative effects on our capacity to conduct business, harm to our
reputation, and financial or legal repercussions (AutoTrader, 2022).

Ecological Environment: The long-term viability of Auto Trader's business and the way its plan
is being implemented are increasingly being threatened by the effects of climate change. The
automotive industry is being impacted externally by changes in laws and regulations as well as
consumer worries about the environment. One notable effect is an increase in demand for electric
vehicles, or "EVs" (Auto Trader, 2023).

In summary, Auto Trade operates in a political, economic, social, legal and environmental
background where any change in these factor can significantly influence Auto Trader. The
company needs evaluate these factors continuously to early identify any change in these and be
able to make effective strategic plans.

SWOT Analysis
The SWOT analysis defines current and future operations by identifying and analysing internal
and external strengths, weaknesses, opportunities, and threats. It also aids in the setting of
strategic goals by leveraging strengths to capitalise on opportunities, controlling weaknesses, and
effectively managing threats. The Auto Trader SWOT analysis is below:

1.1. Strengths

S1 Strong brand Recognition and Market Share: The largest advantage of Auto
Trader is its market share and widespread recognition in the auto trading industry.
Auto Trader is the most active marketplace for new and used cars, according to a
statistic from the company's annual report for 2022. Auto Trader receives about
75% of the time spent on automobile classified sites, eight times more than our
 next rival (it was seven times greater in 2021). To stay ahead of its rivals, Auto
Trader is developing and enhancing the customer experience (AutoTrader, 2022).
S2 Strong Experience and Expertise: With over 40 years of experience as a reliable
resource for UK automobile buyers and sellers, Auto Trader has a wealth of
knowledge in the auto trade industry. The volume of observed vehicles and
customer interactions at Auto Trader produces a large amount of high-quality data.
Additionally, the Group is the owner of exclusive taxonomy data. It makes
efficient use of the copious amounts of data it gathers to improve our customers'
car-buying experiences.
S3 Auto Trader Delivery Services: The fact that Auto Trader provides a
productive marketplace for logistics for all car transfers is one of its major
advantages. The Auto Trader Moves (formerly Motor Trade Delivery) platform
offers both B2B and B2C delivery options. With Auto Trader Moves, sellers may
plan the transportation of their inventory to and from auctions, different
dealerships, or the buyer's house. In addition, stores can now use Market Extension
to reach more customers outside of their immediate neighborhood, all due to
enhanced delivery networks.
1.2. Weakness
W1 Reliance on Third-Party for Technology Infrastructure and Data: In order to
maintain its technological infrastructure, obtain data about cars and their finance, and
complete certain of its revenue-generating items, Auto Trader depends on outside
companies (AutoTrader, 2022). As a result, it's critical that it oversee key suppliers'
performance and relationships. Retailers may lose money if these suppliers endure
prolonged outages or fail, and audiences may drift away as a result of a worsened
shopping experience.
W2 Highly Dependent on IT Systems: Auto Trader is a digital company that depends on
its IT infrastructure to stay in operation (AutoTrader, 2022). Any unfavorable
incident that results in a prolonged outage of its current IT infrastructure and systems
would severely affect the services that the company offers. Delivering on its strategic
goals also depends on leveraging data to give clients insightful information. A big
data leak would cause the public, auto dealers, and advertisers to lose faith in the
 company, regardless of whether it was the result of criminal cyberattacks or internal
mistakes. Penalties may ensue, causing harm to one's reputation, audience, income,
and possibly even financial losses (AutoTrader, 2022).

1.3. Opportunities
O1 Car Leasing Marketplace: A new auto leasing marketplace has a lot of structural
potential because of the growing number of electric vehicles on the road, the entry of new
manufacturers into the UK market (AutoTrader, 2022), the decline in the popularity of
workplace car programmes, and the shift to new digital distribution channels. Customers
can purchase a new car at a reasonable price through leasing, and the model they choose
will fit in with any upcoming transition towards user ship. Auto Trader may therefore take
advantage of this chance to enhance its market share and preserve the reputation of its
brand.
O2 Data as a Platform: Given that Auto Trader currently maintains a vast amount of data
about the automotive sector due to its numerous retailers and customers. As a result, it
offers the business the chance to become the industry leading data platform. Through the
selling of its data, Auto Trader has already expanded the size of its customer base, and this
is just one of many opportunities it has outside of its primary store area. With the ability to
provide precise, organized consumer-facing vehicle information, vehicle valuations, and
market indicators that are both unique and market-leading in terms of the volume of car
pricing behavior and the frequency of updates, it can continue to produce the greatest
results for its customers' businesses. Selling this data to manufacturers, lenders, and
insurers might present a sizable possibility beyond its primary retailer customer base
(AutoTrader, 2022).

1.4. Threats

T1 Failure to Innovate: Failure to create and execute new goods, services, and technology,
as well as a failure to adjust to shifting consumer attitudes towards the purchase and
ownership of automobiles, may prevent Auto Trader from meeting its strategic goals.
Reduced website traffic and lost revenue may result from failing to offer customers and
consumers the finest items and online experience, including an online shopping
experience.
T2 Competitors: The automotive classified market is crowded with online competitors, as
well as other avenues for people to sell their vehicles, such part-exchange or automobile
buying services. Auto Trader can lose market share if rivals create better retailer products
or better customer experiences. In addition, rivals may broaden their inventory selection,
alter consumer preferences, and provide goods and services that Auto Trade is unable to
match.

In addition to a company's internal strengths and weaknesses, the SWOT analysis helps identify
external opportunities and threats. Businesses that thoroughly examine these elements will be
able to create and implement strategic policies and directions that are in line with these elements
and will undoubtedly advance in the future. It all depends, though, on a thorough examination of
these variables. In this case, the SWOT analysis can also help IP determine its future course by
focusing on its internal strengths to take advantage of external chances while mitigating its risks
and weaknesses.
References
Ulubeyli, S., KAZANCI, O., Kazaz, A. and Arslan, V., 2019. Strategic Factors Affecting Green
Building Industry: A Macro-Environmental Analysis Using PESTEL Framework. Sakarya
University Journal of Science, 23(6), pp.1042-1055.

Perera, R., 2017. The PESTLE analysis. Nerdynaut.

Auto Trader, 2023. AutoTrader. [Online]

Available at: https://www.autotrader.co.uk/why?refresh=true
[Accessed 29 December 2023].

Auto Trader, 2023. Our History. [Online]

Available at: https://plc.autotrader.co.uk/about/our-history/
[Accessed 29 December 2023].

AutoTrader, 2022. AutoTrader Annual report of 2022, London, UK: AutoTrader.

IP PLC, 2022. IP annual Report 2022, London, UK: IP PLC GROUP