Comprehensive Missoni Brand Analysis: CSR, PESTEL, Porter's Framework

This report provides a comprehensive analysis of the Missoni brand, examining its Corporate Social Responsibility (CSR) initiatives, the impact of PESTEL factors (Political, Economic, Social, Technological, Environmental, and Legal), and competitive dynamics through Porter's Five Forces framework. The analysis covers Missoni's approach to sustainability, its position within the Italian business environment, and its strategies for managing customer and supplier relationships. It further evaluates the threats from new competitors and substitutes, and the intensity of competitive rivalry within the fashion industry. The report also references Missoni's annual sales and operational margins, providing a holistic view of the brand's strategic landscape. Desklib offers a variety of similar documents and study tools for students.

Running head: MISSONI BRAND ANALYSIS
MISSONI BRAND ANALYSIS
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1MISSONI BRAND ANALYSIS
Corporate Social Responsibility
Corporate social responsibility (CSR) is the process by which organisations usually
arrange their business processes for providing a positive effect on society. CSR is also
considered as a manner in which continuous commitment is made by so that an ethical behaviour
can be maintained while making contribution for the economic development so that an
improvement can be made about the quality of the labour along with the families (Schwartz,
2017).The Corporate Social Responsibility is essential for any fashion industry like Missoni for
building up the customer relationship management programs, and it can be the source of the
competitive advantages (Cheng, Ioannou & Serafeim, 2014). For Missoni, sustainability is one of
the important CSR targets, though the adoption of sustainability initiatives has been slower in
other industries("Missoni Online Store | official site", 2019). The structure of the clothing
industry in creates multiple opportunities for bringing CSR improvements (Tai & Chuang, 2014).
The stakeholders are the major drivers of CSR in the fashion industry. Missoni faces the
consumer demands of providing the products on time, and thus they need to apply the Corporate
Social Responsibility strategies (Servaes & Tamayo, 2013).
PESTEL
Political factor
The political factors can become the biggest source of the uncertainty in any fashion
industry, but for missoni brand in Italy, this brand faces the stable political conditions in Italy. As
they will be benefited by the flow of the stable political business condition through the bottom
line. Italy also provides the major great market for the fashion brands and this country also host
the growing economy, the stable political and the business environment allows missoni to grow

2MISSONI BRAND ANALYSIS
in the business competitive market (Theaker, 2017). Italy provides the most stable business
environment for the fashion brand. Missoni also gets the sophisticated market and the proper
environment for growing the business("Missoni Online Store | official site", 2019).
Economic factor
The economic factors playa great role for any business, and in Italy, the property prices are
comparatively high in respect to the income levels in Italy, by creating demands for the rental
properties. On the other hand, the growth of population also causes a rise in the income, and
there have been various areas, where the business could invest. The favourable economic
condition of Italy allows Missoni to explore their business in this country (Dockalikova &
Klozikova, (2014).
Social factor
Rapid changes in the social factors can cause severe impact particularly on the demand made by
the product of a firm along with the availability and the desire for the individuals to perform.
Three major classes include the working class, middle class and the upper class, where the
boundaries between the groups are the matter of debate. In Italy, there has been growth in the
middle-class economy, and the wealthiest of 5 to 10 percent is considered as the upper class, they
mostly derived their wealth from the ownership, property control and the capital. Therefore, the
fashion brand like Missoni gets the major social acceptance in this market("Missoni Online Store
| official site", 2019). Moreover, their targeted customers are mostly the upper class, and the
presence of the upper class is great in Italy, these enhance the growth of the purchasing rate for
Missoni brand (Grundy, 2016).
Technological factor

3MISSONI BRAND ANALYSIS
The technology advancement provides the opportunity for any business to create new
products and new processes. The technology advancement can reduce the cost, improves the
quality and leads to innovation. The technology advancement in Italy would benefit Missoni to
produce the new product in less time and at the low cost. The Italian government plays a great
role in encouraging the research process and the development in the technology sector (Porter,
2017).
Environmental factor
The environmental factors involve the weather and the climatic changes. Changes in the
temperature can create an impact on any business. The Italian government plays a major role in
identifying the environmental changes and maintains the favourable environmental conditions
for the fashion business brand like Missoni. Therefore, Missoni is able to get the favourable
environmental conditions for growing their business in the Italian business market (Rice, 2016).
Legal factor
Italy provides the favourable legal environment condition for any business to emerge in
the Italian business sector. For ensuring the fair-trading for both the business and the consumers,
Italy provides fair trading laws, competition laws and consumer laws. The Fair Work Act 2009
encourages Missoni to emerge the growth of business in the Italian business market. The privacy
laws also allow Missoni to handle the business with the personal information of their customers
in an ideal manner.
Porter’s five forces Framework

4MISSONI BRAND ANALYSIS
Porter’s five forces framework evaluates the intensity of the existing rivalries, the threat
of the substitutes, the threat of the new competitors, the bargaining power of the suppliers and
the bargaining power of the customers.
Bargaining power of customers
The bargaining power of the customers includes the bargaining power of the individuals
in the fashion retail industry. Customers can be considered as a group based on various factors
that act as an influential force. Missoni employs various types of customer retention strategies
including discountsand membership strategies. The high competition level and the readiness of
various brands and options provide the customers with an easy task. Thus, Missoni needs to
develop strategies so that customers can be attracted and retained by making high investments on
the marketing strategies.
Bargaining power of suppliers
The suppliers cannot be considered as a significant force in the fashion industry like
Missoni, and limited action is taken at the rare end. Most suppliers belong from the undeveloped
countries hence following of the rules are required to set the purchasing brands. Missoni has the
purchasing power, which can be easily switched between suppliers. Missoni also uses financial
strategies for influencing prices. Thus, Missoni faces less control, and the bargaining power is
insignificant for these fashion brand company.
The threat of the new competitors
The threats of the new entrants are often considered as the less significance force in the
fashion industry. It has been stated that the highly populated industry like Missoni faces very

5MISSONI BRAND ANALYSIS
little threats by the entry of the new entrants. The increasing popularity of the fast fashion
provides the fact that the investment in the marketing chain, distribution chain and the human
resources finds out that the threat of the new entrants is not the significant forces in the fashion
retail industry.
The threat of the substitutes
The threat of the substitutes rises from within the business organization, as the company
is intense; therefore, no brand will be able to keep the selling process and remains the famous
without focusing on the customers. Missoni has various competitors, and space is constantly
getting limited. Therefore, from the high end to the low-end segments, Missoni haspopulated the
fashion landscape. There are also emerging competitors for Missoni, who produces the high-end
style products at the lower prices like Zara.
Competitive Rivalry
The competitive rivalry of Missoni can be considered in an intense level as there remain a
large number of brands offering similar types of products. Missoni also drives the loyalty based
on the features and the quality. The fast fashion growth causes the growth of the emerging areas
for the fashion brand Missoni. The race of the winning customers has become so tough that there
is alittle space for the newcomers. Although the competitive rivalry is the strong force for the
fashion, industry likes Missoni (Sutherland, 2014).
Annual report
Missoni’s net sales are 110.00B, which represents the turnover of a brand turnover based
on the sales of the finished products along with the distribution channels like the retail, wholesale
and the e-commerce, after the deduction of the returns and the allowances for the damaged and

6MISSONI BRAND ANALYSIS
the missing goods. The operation margin of Missoni is 15.43%, known as the return of sales, that
measures the percentages of the sales revenue, which are sent back to the company as the net
profits. The overall revenue of Missoni is 110.00B that considers not only the sales of the
finished products but also the other sources of the company’s income (Luck, Muratovski &
Hedley, 2014).

7MISSONI BRAND ANALYSIS
References
Cheng, B., Ioannou, I., & Serafeim, G. (2014). Corporate social responsibility and access to
finance. Strategic management journal, 35(1), 1-23.
Dockalikova, I., & Klozikova, J. (2014, November). MCDM Methods in Practice: Determining
the Significance of PESTEL Analysis Criteria. In European Conference on Management,
Leadership & Governance (p. 418). Academic Conferences International Limited.
Grundy, T. (2016). Rethinking and reinventing Michael Porter's five forces model. Strategic
Change, 15(5), 213-229.
Luck, E., Muratovski, G., & Hedley, L. (2014). Co-branding strategies for luxury fashion brands:
Missoni for Target. Global Fashion Brands: Style, Luxury & History, 1(1), 41-56.
Porter, M. E. (2017). How competitive forces shape strategy. Strategic Planning: Readings, 102-
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Missoni Online Store | official site. (2019). Missoni Online Store | official site.
Rice, J. F. (2016). Adaptation of Porter's five forces model to risk management. DEFENSE
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Schwartz, M. S. (2017). Corporate social responsibility. Routledge.
Servaes, H., & Tamayo, A. (2013). The impact of corporate social responsibility on firm value:
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Sutherland, E. (2014). Lobbying and litigation in telecommunications markets–reapplying
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Tai, F. M., & Chuang, S. H. (2014). Corporate social responsibility. Ibusiness, 6(03), 117.
Theaker, A. (2017). What is public relations?. In The Public Relations Strategic Toolkit (pp. 17-
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