Organizational Strategy for Online Men's Clothing Sales Industry in Australia

Running head: Organizational strategy
Organizational strategy

Organizational strategy
Table of Contents
Introduction.................................................................................................................................................3
Theories of competitive advantage.............................................................................................................3
External environment..................................................................................................................................4
PESTLE analysis........................................................................................................................................4
Porter five forces analysis........................................................................................................................7
Conclusion.................................................................................................................................................10
References.................................................................................................................................................11
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Organizational strategy
Introduction
The main aim of this task is to provide a brief overview about the profitability and
revenue of online men’s clothing sales industry. The online men’s clothing sales industry has
succeed over the past few years. Various macro environmental factors influence the outcomes
and returns of the clothing industry. Furthermore, the paper explains that how the clothing
industry uses porter five forces analysis and pestle analysis to stand out against the rivalries
market as it also describes that how this industry increases and improves performance in the
Australian market. The clothing industry cannot survive its business activities and operations in
Australian market without evaluating the external environment. By using pestle analysis and
porter five forces analysis, the industry has been able to increase the number of customers in
such market. Further detail of the task has been discussed below.
In today’s competitive world, the online men’s clothing sales industry is flourishing and
growing due to the increasing acceptance of online shopping and changing choices, preferences
and tastes towards men’s fashion. On the other hand, traditional retail companies are struggling
with unstable consumer sentiment, whereas online stores are being benefited from the customers
who seek various choices and values. The online retail stores provide wide range of products to
the consumers at suitable prices. In this way, online men’s clothing sales industry is maximizing
profitability and revenue day by day. The online shopping has become more popular in
Australian. Although, this industry is growing rapidly but still few challenges and issues are
faced by the online clothing industry in the international market. SWOT analysis, porter five
forces analysis and PESTLE analysis are done by the industry to analyze and evaluate the risks
and opportunities of the market as well as competitors (Craik, 2015).
Theories of competitive advantage
There are various theories through which online clothing can gain competitive
advantages. Resource based view theory is used by clothing industry to determine and evaluate
the strategic resources with the potential to attain competitive benefits in the Australian market.
These resources can be exploited by the industry to attain long term benefits (Foss and Knudsen,
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Organizational strategy
2013). This theory focuses on the methods and techniques through which the industry collects
resources from various ways. Along with this, capability based view theory is also implemented
by the clothing industry to determine and analyze the capability of the workers (Freeman III,
Herriges, and Kling, 2014). It shall be noted that clothing industry can also use managerial and
corporate level strategies such as differentiation, focus and low cost leadership strategies to stay
in the competitive market.
External environment
External environment theory is a strategic tool which is used to identify and analyze the
external and internal factors that can influence the industry’s performance and productivity. The
industry cannot control on the external factors (Rothaermel, 2015). External enviornment is also
known as macro environment. External environment encompasses various factors such as
political, economic, social, technology, environmental and legal factors. Pestle analysis for
online men’s clothing sales industry has been stated below.
PESTLE analysis
Political factors
The political factors can be influenced the clothing industry positively as well as
negatively. The political factors refer to the government policy like rules, regulations and degree
of the intervention in the economy (Howes, 2013). The political decisions can direct impact on
several areas for trade and business like education of the employees, health of the country and
quality of the infrastructure. Various geopolitical events also influence the clothing industry in
Australia. Along with this, terrorism is other kind of issue which could influence the clothing
industry in such country (Black et al, 2014).
Economic factors
These factors can have direct impact on the online men’s online sales clothing industry.
Due to rising in economy, people have more disposable income. Thus, they purchase more
clothing as it also increases online sales for clothing manufacturers, retailers and wholesalers.
Along with this, the economic growth rate is higher than in most OECD countries such as UK
and US. The GDP of the country is AUD $1.69 trillion as of 2017( Tradingeconimics, 2018).
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