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Pestn Company Analysis

Autor:   •  August 18, 2012  •  Case Study  •  1,527 Words (7 Pages)  •  1,180 Views

Page 1 of 7

1.1 External Analysis

1.2.1. PESTN


Political Environment

Retail sector needs to comply with Australian Government legislation; such as the Australian Consumer and Competition Act 2010 (Cth), which provides a template for ethical trading acceptance in Australian borders. It outlines that commercial retail trading needs to be conducted in a politically accurate environment so that a product does not engage in misleading and deceptive conduct. In the face of the 21st century online shopping and e-commerce are of heightened concern as advertised products must be accurately described to avoid charges of false advertising and deceptive conduct.

Economical Environment

The 2009 global financial crisis slams retail manufacturing (Bloomsberg Report, 2008). Consumers indicated behaviors of tighter spending and lower prosperity consumption have impacted companies, suppliers, retailers and distributors on a worldwide scale. An overall decrease of 2.3% in spending the retail clothing industry in the early start of 2009.

Socio-Cultural Environment

Temporal (2000) describes consumers as more than ever demanding in products found in the real world or ‘virtual retailer outlets’. Companies are positioned to produce products they are ideal matches to a variety of unique consumer tastes and preferences. The trend in the last decade exemplifies that a growing number of consumers are willing to spend money on the real fashion industry whether it be online or offline (Real stores). Traditional retailers are facing serious threats and challenges in the face of e-commerce and online shopping destination; for any retailer to survive it is essential in a constantly advancing technologically society that latest developments in retail shopping needs are on the radar, this may mean having both tangible shopping outlets and easy access to intangible online stores.



Technological Environment

Retail shopping faces major threats from technological advancements; it has become easier and conventional for shopper to go online and look for a good deal. For a successful retail fashion business, it is crucial for the development of both aspects where consumers can come into a physical tangible store to discover products and online stores that intangibly justify the sense of shopping for busy consumers.

Natural Environment

Consumers question ethical concerns and morality of retail fashion giants regarding the harvesting of material used in making products or manufacturing process. It is understood consumers prefer goods produced from a sustainable and environmentally


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