Issues Affecting Footwear Industry

Report

Table of Contents
INTRODUCTION...........................................................................................................................1
Describing two issue that affect sub sector..................................................................................1
Using PESTEL, categorize two issue and explaining the reasons...............................................2
Describing the issues had a positive impact on business.............................................................3
Describing the issues had a negative impact on business............................................................3
Summary of the lesson learnt from this.......................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
The selected sub sector for this report is Footwear which includes all kind of footwear
such that sandals, manufacturers and distributors of shoes, boots, sneakers and different types of
footwear as well. Data shows that, revenue of footwear market also contribute high part for the
growth of economy and the market also expected to grow annually around 1.1% as well
(Footwear UK, 2018). The current report describe two main key issues that affect the overall
footwear sector and further, by using PESTLE analysis as a strategic management tool,
categorize two issue and provide justification as well. Further, report describe positive as well as
negative impact upon business and then provide a summary of lesson learnt from the entire
session.
Describing two issue that affect sub sector
It is analysed that footwear industry grows every year in the terms of revenue, but there
are number of issues that also affect the industry in opposite way. These are as mention below:
Increase cost: This problem affect the overall sub sector in opposite way such that there
are different types of raw material used to make footwear and If the cost of these footwear is
increases, it affect the overall cost of the industry. On the other side, if the country's economic
situation is not stable, then it also affect the overall industry (Macchion and et.al., 2017). For
instance, if there is inflation rate, then the rate of products is also increases, that directly increase
cost of footwear as well. As a result, customers did not willingly pay to purchase high price
footwear and the financial performance of the company also got affected. On the other side, If
the company start using low material products, then it also affect the overall profitability in
opposite way. Therefore, sudden increase in cost of the products and poor quality affect the
overall footwear sector in opposite way. Even the firm did not satisfy the needs of customers and
as a result, the profitability affected in opposite way.
Technique related problem: Footwear sub sector also faces issues related to technique
such that techniques are the tool, machine and methods which are used in production of good.
Therefore, it is a part of technology and it is also consider as a problem for footwear sector. The
material last provide by CLRI is suited for shoes and sandals only but not for all footwear
fabrication and if it is used by them then it creates difficulties for fitting and stitching. In this
sector, they also faces issues related to lack of training while using technique. Such that most of
them are not aware how to manufacturer shoes by using advance technologies and as a result, it
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