ProntoPro

CEO: Marco Ogliengo

Political Factor
● The Italian government’s efforts to implement new investment promotion policies

to position Italy as a desirable investment destination have been undermined in

part by Italy’s slow economic growth and lack of consistent progress on structural

reforms that could reduce lengthy and often inconsistent legal and regulatory

procedures, unpredictable tax structure, and layered bureaucracy. Italy neither

promotes, restricts, or incentivizes outward investment nor restricts domestic

investors from investing abroad. ProntoPro has the opportunity to invest in the

business without any registration related problem. 1

● There has a 24% corporate income tax rate which harms revenue. So much tax rate

has a direct impact on the business. The company has to pay a 24% tax on the profit

which deduct a huge amount from profit. If a business gains $100,000 profit, it has

to pay tax $24,000. That’s why ProntoPro has to pay a big amount as corporate tax.
2

● Youth entrepreneurship support enjoys a high profile in Italy due to a set of

National Youth Plans, which created several important institutions such as the

Youth Department and the Youth Policies Fund. EU-level policies such as the

European Social Fund, the Youth Employment Initiative, and the Youth Guarantee

reinforce national efforts and help to engage regions, provinces, and local

authorities in promoting and supporting youth entrepreneurship. ProntoPro has

1
https://www.state.gov/reports/2019-investment-climate-statements/italy/
2
https://www.nordeatrade.com/dk/explore-new-market/italy/taxes
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 a great opportunity to expand its business nationally and internationally because

of the youth entrepreneurship support of Italy’s Govt.3

Economic Factor
● Because of COVID-19, now Italy is facing an economic crisis and it has a negative

impact on ProntoPro. But Italy leads a strong economy through previous years

(Italy’s economy, the eighth largest in the world) and it can face the problem and

recover it. ProntoPro can easily operate its business after the recovery of COVID-

19.4,5

● Income levels of the people are shrinking because of COVID-19, and people are

buying products online, they cannot get service online which has a negative

impact on ProntoPro. People are spending most on e-commerce buying after this

pandemic ProntoPro can make a profit and be stable in the market. 6

● Italy’s public debt will hit almost 160% of GDP this year and its economy will

shrink by close to a tenth. Across the euro zone, it forecast an average GDP fall of

7.7% this year. If the GDP fall of a country, then its economy also falls which

creates a negative impact on the business of this country. ProntoPro also has a

negative impact on the GDP fall.7

● There is a high unemployment rate in Italy (In 2017, overall unemployment was

11.4%, but youth unemployment remained high at 37.1%). This can create a pool

of professionals of ProntoPro who will serve with a low rate of service( low rate of

3
https://www.oecd.org/employment/leed/Italy-Youth-Entrepreneurship-Report-FINAL.pdf
4
https://www.bbc.com/news/world-europe-51799956
5 https://www.state.gov/reports/2019-investment-climate-statements/italy/
6
https://www.statista.com/statistics/1106759/opinions-on-impact-of-coronavirus-on-personal-income-in-
italy/
7
https://www.reuters.com/article/us-health-coronavirus-eu-italy/impact-of-virus-on-italys-economy-laid-
bare-in-eu-forecasts-idUSKBN22I145
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 service means the price will reduce the service which professionals serve) and

because of the low rate of service people will buy more service from ProntoPro

which will create more revenue.8

Social Factor
● In Italy, people have strong spending capability which has a positive impact on

ProntoPro. But since the financial crisis, the majority of Italian consumers have re-

organized their shopping habits & consumer confidence has been decreasing since

the beginning of 2019. Italian consumers are demanding quality products, they

will, therefore, be more concerned about the quality of goods and customer service

than about promotions. ProntoPro can capture the market through its quality

professionals with quality service. 9

● Italy spends less than other EU countries and achieves worse results. For this

reason, but not only, but Italy also runs the risk of losing a million students in the

next ten years: from 9 to 8 million in total (source: Eurostat). ProntoPro needs

professionals, some should be educated and some should be licensed in particular

work. For these educated professionals ProntoPro will face problems.10

● Italian culture is commonly associated with art, music, and food. Italian business

culture is very relationship-oriented: Italians are known for their sense of family

and this approach has been taken into the business realm. The ability to

communicate, using the right language and the right gestures, is very important.

Italian companies tend to have a pyramidal hierarchy. ProntoPro has a positive

impact on it because the people of Italy can communicate & business culture is

8
https://internationalliving.com/countries/italy/the-economy-in-italy/
9
https://import-export.societegenerale.fr/en/country/italy/market-consumer
10
https://www.morningfuture.com/en/article/2019/05/22/education-italy-europe/631/
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 very relationship-oriented which helps the business create a great relationship

with the customers.11

● Among the population of Italy, 54.79 million people are internet users and 55.1%

of the population do shopping online. It makes a positive impact on ProntoPro.

More buying online creates more customers to the ProntoPro.12, 13

Technological Factor
● Technology is growing in Italy, especially when it comes to inventions and

astronomical observatories. While they are so technologically advanced in so

many areas, surprisingly, Italy is lagging behind the rest of Europe when it comes

to Information Technology. When people are being more advance in technology,

they are increasing the use of technology tools for buying which will create more

customers of ProntoPro and it will generate more revenue to it.14

● New technology transforming products and services which create more value to

them and generate more customers. ProntoPro is also a transformed company that

is a medium between customers and professionals. People do not need to find

professionals, they will be at the customer’s door.15

● Italy is one of the countries with technological advancements in Europe. The

internet user penetration rate is forecasted to continuously grow year on year

during this period. By 2024, it is forecasted an internet usage rate of 77.7 percent.

The number of internet users in Italy amounted to 40.74 million in 2018. The

number is estimated to grow by 5.9 million internet users by 2024. Because of this

11
https://santandertrade.com/en/portal/establish-overseas/italy/business-practices
12 https://www.internetworldstats.com/top20.htm
13 https://www.statista.com/outlook/243/141/ecommerce/italy

14
https://www2.deloitte.com/us/en/insights/focus/industry-4-0/italy-4-0-digital-future-technology.html
15
https://www.areadevelopment.com/advanced-manufacturing/December-2013/new-technologies-
techniques-transform-manufacturing-2828110.shtml
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 large number of active internet users Italy became the 13th largest market for e-

commerce with a revenue of US$16 billion in 2019, placing it ahead of Brazil and

behind Spain. This active internet user market opens up a growing opportunity

for ProntoPro.16

Ecological/ Environmental Factor

from manufacturing to services, are at the international forefront of virtuous

behavior towards the environment, respect for people, inclusion, and social

solidarity. Business sustainability means the business can sustain in the market

and Italy has an environment that is sustainable for the business and it can help

ProntoPro to sustain in the market.17

● In light of the recent events, on-demand services have been severely impacted by

the pandemic. As the coronavirus continues to keep us locked inside our homes,

many on-demand companies have lost large amounts of customers. The highly

contagious nature of the virus has scared people to avoid direct human contact

with those they are unacquainted with. COVID-19 has a negative impact on

business all over the world and ProntoPro will also face it.18 With several

companies closing their offices and asking employees to work from home, all the

gyms and sports clubs shut down until at least March 8, and a range of beauty

centers, mostly operated by Chinese entrepreneurs, closed, Milanese consumers

are finding online and on-demand services a vital option for sticking to their

routines. The customer service operation of another popular on-demand service

16 https://www.statista.com/outlook/243/141/ecommerce/italy
17
https://www.fondazionepirelli.org/en/corporate-culture/blog/italy-an-environmental-and-social-
sustainability-leader-and-example-through-the-virtuous-choices-of-its-companies/
18 https://www.netsolutions.com/insights/adverse-impact-of-covid-19-on-demand-industry/

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 in Milan, MamaClean, which offers dry-cleaning with pickup and drop-off at

home or the office, received the same type of information requests last week. On-

demand Home Services Grow During Coronavirus Outbreak in Milan which will

increase the sales of ProntoPro.19

● The Advancing Personal and Household Services (Ad-PHS) Project aims to create

a common discursive framework around PHS among different actors in the

different Member States. Within this context, creating a common discursive

framework would imply an awareness for the different definitions of Personal and

Household Service in different member states and a joint communication effort to

find a definition that is feasible for all the actors implied, a shared classification of

the different approaches used for the promotion of this field and a shared

understanding of the guidelines for action, that would support its further

development. 20

19 https://wwd.com/business-news/technology/on-demand-home-services-grow-during-coronavirus-
outbreak-in-milan-1203526006/
20 https://ad-phs.eu/ht8ag2/uploads/2020/05/state-of-play-report.pdf

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Conclusion PESTEL Analysis
The analysis of the On-Demand Home Service Industry has shown the term & factors

influencing the industry key players and supporting those companies. To take the benefit

of those factors, they should utilize the opportunities and threats to turn into new

opportunities.

Threats and Opportunities for ProntoPro of the

External Analysis

Opportunities
The Industry is fast growing because of its diversified presence in the market. The players

of this industry can easily flourish in the market utilizing the opportunities of this

industry which are defined through those factors. Italy Government give the young

entrepreneurs special support to do the business and there have lots of internet users in

Italy which can increase the clients in this industry

The unemployment rate will help this industry get lots of professionals which will play

as cost-benefit for the players of this industry. This industry can serve its service with

quality which will increase the client base. These opportunities will help the industry and

the players being the leader of the market.

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Threats
COVID-19 is a big threat to this industry. The government said the people do not go

outside and no to make any crowd which shrinks the overall market of Italy. People are

afraid of virus and they give up buying lots of things, they only buy essential goods for

consuming. But in Milan, people also buy home service, the on-demand home industry

is getting new customers even in this pandemic. There have a large number of tax cuts

on profit and GDP fall which have a negative impact on the industry. The players can

reduce the tax cut through professional’s consultancy and promoting their service to gain

more customers.

The PESTEL analysis shown that in the market there has a huge negative impact of

COVID-19 which reduces the sales of on-demand home service. It can turn into

opportunity by explaining to the customers about the disinfection of the particular

company. They should disinfect their professionals and provide them PPE while they go

to provide any service.

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