The UK clothing or retail market is a diminishing market. The retail industry is surrounded by competition. From competition the companies have invested in high technological machinery. These machinery leading to greater efficiency or have moved their production to factories in cheap labour cost countries to produce their product. Most of the retail companies in this sector make only reasonable profit. Clothing retailing is a highly diverse industry. The retail sector have some verity from low-cost and discounts retailers through to independents, high expensive designer boutiques, sportswear and formal wear. However retail is in middle level from most of customer goods market, where major players are to be found and money can be earned.
I am a senior corporate member of NEXT Plc to write a report about it's clothing business. His report should give the reader an overview main trends in the strategic environment and in -depth analyse of NEXT Plc in detail.
PESTLE analysis :
It is very important for an organisation, considers it's environment before beginning the business process, infect environment analysis should be continuous and feed all aspects and planning. There are many factors in the macro environment that will effect the decisions of any organisation. Tax changes, trade barriers, new laws, government policy and demographic changes are all macro change. The PESTLE analysis of NEXT Plc examines the main factors impacting the company as a retailer.
Political factors ;
The political environment is suitable. If United Kingdom is fail to achieve total contract with some of EU policies from time to time but the government is reliable and stable. EU directives are not know in near future which will be the direct effect in the UK clothing retail. A trend can be seen towards enforced environmental protection legislation due to the EU membership. NEXT or his suppliers may effected directly or indirectly by this.
Economical factor ;
These include taxation charges, interest rates, inflation, exchange rate and economic growth. Pound sterling exchange rate is close to Euro. In the UK market place NEXT sale about 96%.currently this may have limited effect but in future it could be more important when thinking globally. The falling unemployment rate is another issue. This is good news for UK population but different implication for companies like NEXT. It means higher expenditure for NEXT, also recruiting good employees in greater difficulties.
Social factors ;
The social cultural future in UK should be mentioned that people retire earlier these days, as well as working short hours. So people have more spear time. In these spear time they compare price in the high street, services from retailer and quality of goods. But the result is, they spend more time in the shop. “Green environment issue” is another issue in these days. Because people have more time and they apply their time to the TV, radio, newspaper and the internet. So the customer is better inform about environment and this issue challenging him to care. He interested more then just a product that where his product build, is the factories are environmentally friendly or any child labour etc.
New technologies create new products and new processes. Another impact on the industry is the speed of technological transfers. Industry is not comparable with fast growing internet business also important. Morden technical material can be produced quicker and cheaper. these developments can benefit consumer as well as the organisation providing the products.
Environmental factors ;
Environmental factor include climate change and weather. Changing environment can impact on industries. With greater environmental awareness and with major climate changes happen due to global warming this external factor is becoming a significant issue for firms to consider. The growing desire to protect the environment is having an impact on many industries such as travel and transport industry which is related with NEXT.
Legal factors ;
Legal factors are related to the legal environment in which industry operate. In current year in the UK there have many meaningful legal changes that have affected many industry behaviour. The introduction of age discrimination and disability discrimination legislation, an increase in the greater requirement and the minimum wages for industry to recycle example of recent laws that affect the organisation's operations. In these change product price will be high and demand of the product will be affected and customers are loosing their interest to buy.
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