PESTLE analysis short for political, economic, social,technological and legal which are help to identify how different factors influence an industry such as fashion industry. The most essential factor for fashion industry is social. Because people from different countries have different background and culture. If people come from Pakistani and it is a woman than she need to wear the clothes which can cover all her skin while if in China most women can wear whatever they want. Therefore, for fashion industry if they need to design clothes and shoes for these two different countries, culture is a aspect that they need to consider. Next comes legal, when people buy clothes price is the important factor that influence they to make decision. However, in many store, for instance Primark the price is low then the wage for staff is low as well. Consequently, government can carry out policy to avoid this kind of situation. Another is the revenue, as economic globalization and integration many stuff export to different countries while different countries have different standard of tax which is decided by government. In order to get maximin profit, suppliers have to consider this aspect. Another factor is environmental, people become increasing pay attention to environmental friendly material which is the same as fashion industry. People not only care about price but also care about material whether it is comfortable or recycle or not.
Next play an important role in an company are stakeholders. Stakeholders refer to individuals or groups who depend on the organization have the same goals and interests, moreover, they influence each other. Stakeholders can be divided in two parts, one is internal stakeholders for example employees, managers, owners and shareholders. Another one is external stakeholders such as suppliers, customers, government and local communities. In fashion industry such as Chanel, it is a luxury brand. The quality is reasonable good and after sale service makes customer satisfied as warranty period is one year and free to repair. Although it is quite expensive, people are willing to buy it. Surprisingly, each employees in Chanel are love it, work for Chanel make they feel pride. In addition, employee in Chanel can get one suit a year and most of them have chance to work in high boutique when they working in current one. Besides, company have high reputation and get huge profit. According to Forbes in 2012, brand value is $62 B and annual income is $4.2 B. Therefore, if company working with Chanel it can feel safety and successful
These two tools can help to analysis a company in different aspects and to find ways to improve weakness and keep strength.
Next play an important role in an company are stakeholders. Stakeholders refer to individuals or groups who depend on the organization have the same goals and interests, moreover, they influence each other. Stakeholders can be divided in two parts, one is internal stakeholders for example employees, managers, owners and shareholders. Another one is external stakeholders such as suppliers, customers, government and local communities. In fashion industry such as Chanel, it is a luxury brand. The quality is reasonable good and after sale service makes customer satisfied as warranty period is one year and free to repair. Although it is quite expensive, people are willing to buy it. Surprisingly, each employees in Chanel are love it, work for Chanel make they feel pride. In addition, employee in Chanel can get one suit a year and most of them have chance to work in high boutique when they working in current one. Besides, company have high reputation and get huge profit. According to Forbes in 2012, brand value is $62 B and annual income is $4.2 B. Therefore, if company working with Chanel it can feel safety and successful
Clear knowledge of PESTEL - I like the way you relate social factors to fashion (please avoid the word "stuff" though!)
ReplyDeleteNice use of quantifiable data to demonstrate the success of Chanel - when discussing stakeholders it is ueful to discuss the clashes of interests of some of them