Business Environment Analysis: PESTEL of Boulder Denim - Report

This report presents a PESTEL analysis of Boulder Denim, examining the external factors impacting the company's operations. The analysis covers political, economic, social, technological, environmental, and legal aspects. Politically, the report highlights the importance of adhering to regulations. Economically, it addresses the impact of global recession and cotton price fluctuations. Socially, it emphasizes the significance of cultural variations. Technologically, it discusses the role of online shopping and social media. Environmentally, it focuses on the impact of manufacturing processes and the need for sustainable practices. Legally, it mentions the 'Textile Confidence' logo and Oeko-Tex certification. The analysis concludes that while Boulder Denim faces challenges, particularly in environmental and legal areas, its core business model remains stable due to lower labor costs and a strong shareholder profit, and it should be able to manage these issues.

PESTEL ANALYSIS OF BOULDER DENIM
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PESTEL ANALYSIS OF BOULDER DENIM
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4/7/2020

PESTEL Analysis of Boulder Denim
POLITICAL:
• In any nation, promotional practices are governed by legislation and it is hence essential
that the organization complies with all of the laws and regulations of the nation in which it
operates (Zalengera, Blanchard, Eames, Juma, Chitawo, and Gondwe, 2014).
ECONOMIC:
 International sense of economic downturn: the global recession impacted customers
'buying ability, a significant determinant of the industry growth.
 • The process of a country's economic growth often impacts the denim producers
'promotional strategy.
 Distribution networks can need modification with respect to each local market's stage
of growth (Zalengera, Blanchard, Eames, Juma, Chitawo, and Gondwe, 2014).
 Competition in the clothing market is very strong.
 Cotton price increase: the industry often confronted increasing cotton costs, despite
the drop in orders due to economic crisis. In reality, before dropping back in 2011,
cotton prices had soared.
SOCIAL:
 Cultural variations are important: culturally diverse needs and styles are diverse.
Brands will tailor their goods to the different specifications.
 Shades are cultural dimensions: in China, black shades are synonymous with death,
for example, but in Australia, white is the colour of death.

TECHNOLOGICAL:
 Development of online shopping.
 Mobile is and Android applications: this approach is pushing the industry to an
entirely new age.
 Social-media marketing through Twitter helps people to link to and become followers
of the brand's Facebook profile. This approach strengthens the feeling of company
participation (Rastogi and Trivedi,2016).
 This brand increasingly develops their advertising strategy.
 According to innovative approaches to manufacture clothes are now feasible to take
account of safety and climate, as is the case with the French Climate and Energy
Conservation Firm.
ENVIRONMENTAL:
 • During the manufacturing process 52% of harm to the clothes arises. From cotton to
production and manufacturing of clothes
 The amount of 25 litters of oil would have been absorbed by one fabric, which
culminated in a rejection of 2 kg of CO2.
 The sector faces rising competitive customers on environmental concerns. The
industry will offer safe and ethical world-friendly goods.

• Elimination in the usage in plastic and packaging forest resources;
LEGAL
 The "Textile Confidence" logo has been applied to some fabrics. The goods are Oeko-
Tex (www.oeko-tex.com) approved and promise the healthy usage of textiles.
PESTLE analysis of Boulder Denim: Final Thoughts
The pestle analysis of Boulder Denim is unfavourable as the, it is going through various
issues, firstly the company needs to manage its business according to the rules and regulation
of Australia, secondly it is hardly being impacted by the competition as the competition is
high in the market also the economic growth of the company impacts the promotion strategy
of the company. Moving ahead the social analysis of the company is in favour as the
company understands the difference of culture and works accordingly. Moving to the
technology part, the company is able to manage this as they have great strategy to sell things
online. The company if facing issues due to environment as there production impacts the
environment, the company highly needs to focus on their sustainable practices For one cause,
Boulder Denim is a global brand: it manufactures quality apparel items at a low rate. The
company's core business model is stable owing to lower labour costs that maintain a strong
shareholder profit. Legal and environmental issues remain, but Boulder Denim should be
more than enough experienced to cope with it (Rastogi and Trivedi,2016)

Rastogi,, N. and Trivedi, M. (2016) PESTLE technique–a tool to identify external risks in
construction projects. International Research Journal of Engineering and Technology
(IRJET),. 3(1), pp.384-388
Zalengera, C., Blanchard, R.E., Eames, P.C., Juma, A.M., Chitawo, M.L. and Gondwe, K.T.,
2014. Overview of the Malawi energy situation and A PESTLE analysis for sustainable
development of renewable energy. Renewable and Sustainable Energy Reviews, 38 (2)
pp.335-347.