Impact of Pandemic and Forces on Fashion Industry

GLOBAL BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION................................................................................................................................3
TASK ...................................................................................................................................................3
A- Analysing impact of pandemic and forces that have shaped business environment of fashion
industry............................................................................................................................................3
B- Critically assess opportunities and challenges that forces have presented to companies that has
operated in fashion sector................................................................................................................5
CONCLUSION....................................................................................................................................7
REFERENCES ....................................................................................................................................9

INTRODUCTION
Global business environment encompasses key elements and factors that affected
environment in varied nations, which directly and indirectly impact atmosphere of many companies
in negative manner. The current assignment will be based on fashion industry, which falls under list
of leading sectors in the world. The study will explain impact of pandemic and major forces that
have shaped venture environment of fashion sector. Furthermore, lastly the report will justify,
challenges and opportunities that these forces have presented to companies in chosen industry and
will also define reason behind why and how some organizations have been capable to adapt better
than others to this changing business environment.
TASK
A- Analysing impact of pandemic and forces that have shaped business environment of fashion
industry
Impact of COVID-19 on fashion industry-
Pandemic as an external factor affected the whole world in negative manner, it has impacted
business environment of fashion sector in term of decreasing customer base, profitability and lower
operational efficiency (Brydges Retamal and Hanlon, 2020). It affects negatively upon this sector as
in many nations governments close down production plants and close stores, in order to slow down
the spread of corona virus, which lead to decrease sales and profit margins of companies. Due to
this factor, many stores and factories are closed from where fashion industry purchase raw material
to manufacture the top quality clothes for everyone. In recent time, just because of pandemic,
customers are less interested to make shopping from outlets as they are highly worried in the
context of virus spread. In this term, it affects customer base of fashion industry.
Forces that have been shaped environment of venture in fashion industry-
Along with above factor, more forces are available in the business world that may play vital
role in shaping business environment of selected sector. Here, PESTEL and Porter's five forces
models used to identify each force.
Political factor-
Political stability is one of those political factors that has shaped business environment of
fashion industry in positive manner, as it may contribute to grow venture in effective and systematic
manner (What is a PESTEL Analysis, 2020). This factor is quite important for companies that has