Lit. Guides>Free Essays>Business>Company Analysis>Boohoo Company PESTEL AnalysisCitePrintShareBoohoo Company PESTEL Analysis EssayExclusively available on IvyPandaUpdated: Jul 5th, 2022Introduction
Economic AnalysisSocial Factors
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808 certified writers onlineIntroductionBoohoo is an online fashion retailer dealing in trendy apparel and targeting customers of all ages (Boohoo.com, 2021, para. 1). Despite COVID-19 challenges, the company can grow by analyzing prevailing political, economic, social, technological, legal, and environmental (PESTEL) factors affecting the apparel industry.
Political FactorsBeing a key player in the European market, Boohoo must be aware of the current government, economic systems, labor dynamics, inflation, and interest rates in countries where it wishes to expand its operations. Europe exports over 30% of clothing and textile to other parts of the world (European Textile and Clothing Sector consolidates satisfactory evolution in 2018, 2019). During the COVID-19 pandemic, most governments have placed strict regulations on international business engagements with different restrictions imposed. However, the movement of goods has not been limited, which gives Boohoo a vital market opportunity (Kleinman, 2021, para. 5).
Boohoo can take this advantage by increasing its export volumes to countries where it did not do business initially. Boohoo can look at countries with attractive foreign tax, trading, and pricing incentives during the pandemic and try to establish its market niche.
Economic AnalysisThe COVID-19 pandemic has significantly affected the interest, saving, and inflation rates globally. Reinsdof (2020) of the International Monetary Fund notes that in the wake of COVID-19, the consumer price index for clothing was recorded at -0.03 percent in 2020. Consequently, various governments have restructured the apparel and transport industry, reducing taxation and opening investors opportunities to boost the industries.
This is an opportunity for Boohoo as it does not require much capital to set up its online presence in such countries. As reported by Redcowmedia (2021) Boohoo has recorded a 26% increase in orders through social media marketing in France and another 17% increase in social media traffic in the US. These statistics suggest that the company has excellent potential to venture into new markets. Besides, the company may seek to establish new production lines in fast-developing countries, which can be realized by analyzing prevailing interest and employment rates.
Social FactorsDespite the COVID-19 pandemic, people are still concerned about their dressing trends. Ideally, the significant increase in social media during the pandemic for interaction provides online retail companies such as Boohoo with marketing opportunities. The company has already seen its sales grow significantly compared to its competitors through its
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