| Pest Analysis and its usefulnes |
|
|
|
This article explains that the use of PEST analysis is beneficial to any industry. The objective of this article is to analyse each factor of PEST analysis which has an effect on fashion industry and explain how PEST analysis are beneficial.
PEST stands for Political, Economical, Social and Technological factors. This is a tool that can aid organisations making strategies. These analyses help business to understand the external environment in which they operate now and will operate in the future. The first factor of PEST analysis is Political/Legal. Political is something such as monopolies legislation, regulation environmental protection laws, taxation policy, foreign trade regulation, employment law Government stability and etc. The main purpose of Political in PEST Analysis is to protect those who are using banks’ services as a customer. The second factor of PEST analysis which is very useful when considering business development and investment options is an economic factor. All businesses are affected by economical factors nationally and globally. Looking into fashion industry it is, really useful tool, as it helps to understand consumer spending through the level of interest rates and inflation. The third factor is Social. In PEST analysis, it is very important that the social cultural environment is analyzed properly for better understanding of the environment to be conquered. The sociocultural environment encapsulates demand and tastes, which vary with fashion and disposable income, and general changes, can again provide both opportunities and threats for particular companies. Last factor of PEST analysis is Technology; it monitors recent developments within the organisation and other markets. Technology is really important as it can affect the products and services offered to the customer. The changes in technology offer opportunities, such as the potential to break into new markets by offering new, radically different products and services. Technological factor is so vital to the fashion industry as this market changes rapidly, and it is much more difficult to stay differentiated. PEST analysis is beneficial, because it provides an overview of the environment the business is in and will help identify both internal and external influences affecting that business. Fashion Industry is influenced by Government according to Political factor. It is important for any business to look at Economic factors, because they are all affected by a whole economy. What concerns social factors, organisations must look at social needs of their customers. Through developments of technology, banks may break into new markets. By Rima Ziaugaite SOURCES: http://www.coursework4you.co.uk/pest.htm http://marketingteacher.com/Lessons/lesson_PEST.htm Share this Article:                        Advertisement |
