Billabong International Limited: A PESTEL Analysis

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Assessment Item 1

Post1.
The chosen organization or strategic business unit is Billabong International Limited which is
known as a surf company engaged in clothing retailer in Australia. This company is generally
founded in 1973 by Gordon Merchant and the company had it’s headquarter situated in Gold
Coast, Queensland, Australia. Billabong Company’s was basically started by Merchant with the
introduction of board shorts in the surf market of Australia which attracts the attention of surfers
because of the durability the shorts provide. Further the company expanded itself through
exporting its product in other countries such as New Zealand, Japan and South Africa. Moreover,
Billabong first traded on the Australian Securities Exchange 2000 which provided the company
with fund to further expand itself in the international market (Petrulaitiene, 2015). The company,
Billabong International Limited offers more than 2,200 products in the clothing market of
Australia including board shorts, t-shirts, sport eyewear, jeans, pants, pullover, backpacks and
other products related with man and women. Moreover, the company, Billabong is vast in size as
the company sustains extreme sports shops in over 60 countries worldwide and the sale revenue
of the company is approx. A$1.27 billion (2014). The major business scope of Billabong in the
clothing retail market of Australia is to expand and grow the company through entering in the
global online retail sector in order to increase the efficiency of the company and generate its sale
revenue. Moreover, the macro-environmental analysis of Billabong Company includes the
analysis of PESTEL model for further identifying opportunity and threat factors. The PESTEL
analysis of Billabong is stated below:
Factors Components Impact on Billabong
Political  Taxation.
 Pricing Regulation.
 Impact the sales and
import and export
duties of Billabong.
 Impacts pricing
methodology of
Billabong for its
products (Bushe,
2019).
Economic  Efficiency of Financial  Impacts funding of the

Market.
 Economic Growth
Rate
company.
 Impacts the demand
and sales revenue of
the company in
market.
Social  Education Level.
 Culture in Society.
 Impacts the brand
awareness among the
public.
 Impacts the company’s
product efficiency in
society (Nurmi, et. al.,
2018).
Technological  Technological Trend.
 Online Marketing.
 Impacts cost and value
chain structure of
Billabong in Consumer
Durables & Apparel
Industry.
 Impacts the product
offering structure of
Billabong and
efficiency of the
company in online
retailing market.
Environmental  Climate Change.
 Waste Management.
 Impacts the demand of
the Billabong products
by the consumers.
 Impacts the company’s
attitude towards waste
production and
management within
business operation

function.
Legal  Consumer Protection
and e-commerce.
 Health and Safety
Law.
 Impacts Company’s
capability towards its
costumer’s safety
along with impacting
the management of e-
commerce activity of
the company (Ergün,
2018).
 Impacts the Billabong
policy related with the
health and safety of
both their employees
and customers.
The PESTEL analysis reflects the identification of key factors, opportunities and threats present
or available for Billabong in the clothing industry of Australia. The identified opportunities of
Billabong in clothing industry are the growing demand of its product across world and online
market opportunity for Billabong for increasing the company structure in international market.
Moreover, the identified threats of Billabong are intense competition and increasing trend
towards isolation in the international market (Song, et. al., 2017).

References: Bushe, B., (2019). The causes and impact of business failure among small and
medium enterprises in South Africa. Africa's Public Service Delivery and
Performance Review, 7(1).
 Ergün, K (2018). PESTEL Analysis of the development of the waste-of-energy
incineration industry in China. Renewable and Sustainable Energy Reviews, 80,
pp.276-289.
 Nurmi, J. & Niemelä, M.S., (2018). A Contemporary Approach for Strategic
Management in Tourism Sector: PESTEL Analysis on the City Mugla, Turkey.
İşletme Araştırmaları Dergisi, 10(2), pp.598-608.
 Petrulaitiene, V. & Jylhä, T., (2015). The Perceived value of workplace concepts of
Organizations. Journal of Corporate Real Estate, 17(4), pp.260-281.
 Song, J., Sun, Y., & Jin, L., (2017). PESTEL Analysis of Hacktivism Campaign
Motivations. Lecture Notes in Computer Science (including subseries Lecture Notes
in Artificial Intelligence and Lecture Notes in Bioinformatics), 11252, pp.323-335.