SWOT, PESTLE and Porter's Five Forces Analysis of Pick Your Style Ltd.

This report provides a detailed analysis of Pick Your Style Ltd. using SWOT, PESTLE and Porter's Five Forces frameworks. It covers the strengths, weaknesses, opportunities and threats of the company, impact of external factors, and competitive analysis to help the company make informed decisions.

Introduction to
Business

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
SWOT Analysis..........................................................................................................................3
PESTLE Analysis........................................................................................................................4
Porter's Five forces competitive Analysis...................................................................................6
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Business is an organisation that engages in commercial activities to earn profits and
overall objective of the organization. It can be any entity such as sole proprietorship, partnership
or any company. For any business, it is required to analyse internal as well as external
environment for planning the strategies, making decisions and identify the opportunities in the
market to take advantage of. There are various frameworks to evaluate the performance of
business and take corrective measures to improve it. Start up businesses such as any private
limited company needs to analyse the domestic as well as global market to make the business
functional. They have to face competition in the market to increase customer base and market
share (Garg and et. al., 2022). The following report will cover the SWOT Analysis, PESTEL
Analysis and competitive analysis by porter's five forces model, of a start-up retail business that
is named as Pick Your Style Ltd. (and will deal in fashion, sewing patterns & clothing business,
such as fabric linen, oilskin and woollens) to make it operational and expand its operations by
analysing the internal strengths and external factors' impact on the organization.
TASK
SWOT Analysis
It is a strategic planning method used to analyse the Strengths , weaknesses, opportunities
and threats for the business to evaluate its performance and take corrective measures to improve
it by adopting suitable strategies to face the competition and make it survive in the market
(Satapathy,Mishra and Realyvásquez Vargas, 2022). The following is the SWOT Analysis of a
start-up business Pick Your Style Ltd. that is going to create operations in the future :
Strengths
 Geographical advantage : Due to the
popularity of clothing business in UK
market, the chosen fabric business of
the company has a strong market to sell
its products.
 Manufacturing Process : Pick Your
Style Ltd. will have the production
process advantage due to its perfect
Weaknesses
 Sources of Funds : As it is a start-up
business and a limited company, it
cannot raise more capital from the
general public. It can raise funds from
private equity investors such as venture
capital, angel investors, loans etc.
 Weak brand name : As Pick your
Style Ltd. will be new in the market,

sewing patterns with efficient workers
that will provide cost advantage while
fetching average prices prevailing in
the market.
 Superior Personnel : The company is
having skilled staff for manufacturing
good sewing patterns that will provide
competitive advantage in the new
market.
people will not be aware of its brand, so
it will have to face weak brand and
strive to create brand awareness to
increase customer base.
 Distribution channels : As the
company is a start up, it will not have
much access to the distribution
channels to deliver its products.
Opportunities
 Growing market segment : Fashion
and clothing industry in UK is the
fastest growing sector that contributes
the most to its economy as well. It
provides an opportunity to Pick Your
Style Ltd. to make growth with its
clothing products in the UK market.
 Technology : Demonstration of fabrics
through company's own website will
help in increasing the sale of products
at different locations in UK. So the
company has opportunity to take
advantage of E commerce in this
business.
Threats
 Competition : UK fashion industry is
one of the most competitive business
in UK with big competitors like Marks
& Spencer and Morrisons etc. Pick
Your styles Ltd. is entering in a highly
competitive sector as well as market.
Such competitiveness creates barrier
for the company to enter in this
business.
 Trade Barriers : After Brexit, there
have been trade barriers for imports and
exports and presently due to covid19
pandemic and national lock down, there
have been even more trade restrictions
making it difficult for small businesses
like Pick Your Styles Ltd. to expand
their operations.

PESTLE Analysis
It is a tool that provides framework to analyse the impact of external factors on the
business. It explains the impact of political, Economical, Social, technological, environmental
and Legal factors on the business of the company. It helps the management in decision making
by identifying positive and negative impact of the external environment on the company
(Höpken and Fuchs, 2022). The PESTEL Analysis of Pick Your Style Ltd. is explained
hereunder :
 Political Factors : These factors include the impact of government policies, rules and
regulations of the country such as trade policies, import and export policies, monetary
and taxation policies etc. on the company. As regards Pick Your Style Ltd., it will face
the import restrictions and hence, will be affected by the trade barriers imposed due to
national lock down. The tax payments and copyright are some of the political issues that
will be faced by the company for expansion.
 Economical factors : The impact of economic policies such as interest and foreign
exchange rates, inflation rates, tariffs and indirect tax and consumer spending etc. fall
under these factors (Moital, 2022). These factors will help Pick Your Style Ltd. in
choosing its marketing strategy. The price of the fabrics it offers and the salary of the
workforce change due to the changes in inflation rates. So this company needs to
consider the fluctuations in inflation rate to make decisions regarding its products and
personnel.
 Social Factors : It refers to the cultural affect on business. Social and marketing trends,
preferences of customers, geographical area of business, lifestyle, religious etc. factors
fall under it. Pick Your Style Ltd. has to consider that customers of different cultures
have different preferences. Whether it should deal in traditional or western wears,
depends on the lifestyle of people and trends of the market where it is located.
 Technological Factors : It shows the impact of technology on the growth of the
business. New innovation such as new production technology and digitalisation fall under
theses factors. To avoid visiting in the crowded market , most customers prefer to buy the
dresses through online platforms. So, for marketing purpose, Pick Your Style Ltd. should
take the technological advantage by demonstrating all types of its fabrics through its own
website to deliver its products at all locations in UK.

 Environmental factors : These factors include the environmental aspects such as
climate and weather change, pollution or national disasters that affect the supply chain of
the company and increase costs of materials. Pick Your Style Ltd. should use
environmental friendly methods of production and avoid wastage and burning of clothes
to ensure environment sustainability. To raise its status in the market, it should conduct
environmental sustainability programmes.
 Legal factors : These factors include laws and regulations of the country such as
consumer laws, tax laws, company laws that impact the operations of the business and the
demand of its products in the market (Pires and Barros, 2022). So Pick Your Style Ltd.
must ensure to avoid any violation of laws to avoid fines and penalties as it will affect the
reputation and status of company and consequently its market position.
Porter's Five forces competitive Analysis
It is a framework that is used for competitive analysis by the companies to identify the
sources of competition in the market. It was introduced by Michael E. Porter for corporate
strategic development by considering the competitive pressures in the industry. By measuring
the prevailing competition, company can adopt suitable strategy to ensure survival as well as
long term profitability of the business (Dakora, 2022). The competitive Analysis of Pick Your
Style Ltd. is explained hereunder :
 Rivalry among the existing competitors : It refers to the existing competitors in the
market that the business competes with. Clothing industry is the most competitive
industry in UK. The company must consider the number of existing competitors in the
market, their respective market shares, the differentiation in the products with the
competitors and the switching costs to the buyers (Rice and et. al., 2022). In context with
Pick Your Style Ltd., it should analyse competition in the clothing industry by
considering the competitors like Morrisons, Marks and Spencer and other small retail
businesses that share the clothing industry. It should strive to make buyers switch to its
products.
 Threat of new entrants : It refers to the barriers of entry to other new entrants in the
industry. The factors like high growth rate of the clothing industry, economies of scale of
existing businesses, the government policies applicable on industry, access to the
channels of distribution in new market, the efforts of existing competitors to increase

their market share pose a threat to new entrants like Pick Your Style Ltd. to enter in the
Textile industry. This company is itself a new entrant in the textile industry, so it has to
consider the above factors and analyse the strategies adopted by the big competitors such
as Marks & Spencer. It should enhance its productivity level to take advantage of
economies of scale to prevent other new entrants to enter in the clothing market that will
affect the market share of this company.
 Competitive pressures from the substitute products of other competitors : It means
that customer of the company switches to another product instead of the company's
product to fulfil the same requirement (Crowder, Roohanifar, and Brown, 2022). For
example, Pick Your Style Ltd. offers woollen products but customers can switch to
leather jackets instead to fulfil the same requirement. So, it should consider the number of
substitute products in the textile industry, their prices, quality and the switching costs to
the buyers.
 Competitive pressures Bargaining power of suppliers : It means the negotiation power
of the supplier to supply the materials. Bargaining power of suppliers is high for the start
ups or small companies like Pick your Style Ltd. as they have low access to the value
chain in the market as compared to other well settled companies such as Morrisons that
have suppliers with low bargaining power. So the company needs to consider the number
of suppliers in the market,their significance to the respective company, costs involved to
switch to another supplier etc.
 Competitive pressures from Bargaining power of Buyers : It means when buyers find
the same product anywhere else, they have more bargaining power. The company needs
to add different varieties to its sewing patterns and ready made fabrics so as to make its
clothes differentiated from the competitors. So, to face this competitive pressure, Pick
Your Style Ltd. needs to analyse its customer base, their choices, volume, switching costs
etc.
CONCLUSION
From the above discussion, it has been concluded that to ensure long term profitability
and expansion of business, companies need to analyse the market and the competitive forces. It
should evaluate its performance and create suitable measures to improve it by adopting suitable
strategies to survive in the market. It can use various frameworks such as SWOT Analysis to

identify strengths, weaknesses, opportunities and threats; PESTLE Analysis to analyse the
external environment impact on the operations of business; Porter's 5 forces model to analyse the
competition in the market and get the competitive advantage to maintain market position by
increasing market share.

REFERENCES
Books and Journals
Crowder, M., Roohanifar, M. and Brown, T.A., 2022. Public Sector Strategy: Concepts, Cases
and Tools. Routledge.
Dakora, E.A., 2022. Understanding the role of service providers on the development of
supermarkets in Africa. In Supermarket Retailing in Africa (pp. 170-186). Routledge.
Garg, V., and et. al., 2022. Conceptual Integration of International Marketing in India.
In Integrating New Technologies In International Business (pp. 205-223). Apple Academic
Press.
Höpken, W. and Fuchs, M., 2022. Artificial Neural Networks. In Encyclopedia of Tourism
Management and Marketing. Edward Elgar Publishing.
Moital, M., 2022. Event. In Encyclopedia of Tourism Management and Marketing. Edward Elgar
Publishing.
Pires, P.B. and Barros, A.C., 2022. Rose-Patisserie and Coffee House: Business Development
Alternatives. In Cases on Digital Strategies and Management Issues in Modern
Organizations (pp. 91-118). IGI Global.
Rice, R.P., and et. al., 2022. Age and gender differences in injuries and risk factors in elite junior
and professional tennis players. Sports health, p.19417381211062834.
Satapathy, S., Mishra, D. and Realyvásquez Vargas, A., 2022. Features of ‘Internet of Things’ to
Resolve Agricultural Problems. In Innovation in Agriculture with IoT and AI (pp. 29-52).
Springer, Cham.