Strategic Analysis: PEST Analysis of Hollister's India Market Entry

This report provides a PEST (Political, Economic, Social, and Technological) analysis of Hollister's potential expansion into the Indian market. The analysis examines various factors that could influence Hollister's success, including government regulations, taxation policies, and trade restrictions. Economic factors such as interest rates, inflation, and corporate tax rates are also considered, along with social factors like population size, consumer demand, and cultural preferences. Additionally, the report assesses the impact of technological advancements and infrastructure. The report concludes that while India presents significant opportunities, Hollister must carefully consider the complex interplay of these external factors to ensure a successful market entry. The report also references various books and journals to support its findings.

PEST analysis Hollister

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
PEST analysis of Hollister .........................................................................................................3
CONCLUSION ...............................................................................................................................4
REFERENCES ...............................................................................................................................5

INTRODUCTION
PEST analysis is the analysis of external micro-environment that affects all firms which
stands for political, economical, social and technological. These factors normally are beyond
control of company (Kumar and et.al., 2014). This study is based on Hollister. It is an American
lifestyle clothing company. Firm is looking open new stores in India, so that they assess
influences of external business environment factors as PEST analysis of the nations.
MAIN BODY
PEST analysis of Hollister
Hollister is looking diversify their business in terms of open new store in India, so that
they are assessed PEST analysis of selected nations for expanding their business. Company
needs to determine the political, economic conditions, social and technological factors which
affects in both positive and negative manners in the business expansion (Kaur, T. and et.al.,
2014).
Political Factors:
It involves government regulations, taxation policy, trade restriction etc. which are highly
impact on Hollister. The stable political culture is essential factors to attract the foreign direct
investment (FDI). Corruption is another factor which increase costs of operations of Hollister
and often affects foreign direct investment in India. This kind of factor affect in negative way on
business expansion (Myrick and et.al., 2014). Government has regulated the laws such as
employment laws, environment legislation, tax policy etc. that is necessary to determine all
legislation by Hollister for expanding their business in India. The initiatives to government and
public awareness are fighting challenges of corruption which help to company in relation to open
new store in India.
Economic Factors:
It involves interest rate, inflation rate, corporate tax rate etc. that impact on business
expansion of Hollister. India is the one of the top nation for exporting products such as transport
machines, ready made garments, jewelry and so on. In this context, Hollister open new store in
India easily and effectively. This factor positive impact on business expansion. The current
corporate is 30% in India that impact on retail business which wants to expand their business in
selected nation. If the inflation rate has been increased in India, so that consumer do not buy the
high quality products. This effect negatively on expansion of business by Hollister in select

nation. The political environment is very badly effects on business operations as well as
economic growth of nation. This impact on negatively on business who wants to expand their
business in that country (Kumar and et.al., 2014). In this context, company does not contribute in
economic growth like GDP (Gross Domestic Product).
Social Factors:
It includes population, consumers demand, taste and preferences, culture etc. that impact
on business expansion of Hollister. In this context, the total population is 1.2 billion in India with
consumers markets. Therefore, large market is great chance for multinational companies like
Hollister. India is the one of the most attractive markets in many sectors, so that selected
company easily open their stores in the nation. This factor positive impact on expansion of
Hollister in the India. The rising of disposable income, consumers confidence, increasing net
worth that help to increase growth of retail sector (Myrick and et.al., 2014). Therefore, Hollister
easily open their new stores in the India. This factor impact positive in relation to make more
profitable of business and their expansion in select nation. Highly consumer confidence for
purchasing goods and services which help to increase sales of Hollister. This impact positively
on the business expansion of retail company in the India. In this context, country offer low price
labour forces so that company easily hire labour at affordable price while starting new store in
India.
Technological Factors:
Selected country is one of the most technological advanced in the world. With the high
information technology infrastructure, workforce, Hollister easily diversify their business in the
India. Huge advanced technology is great opportunity to companies for establishing new
business in the India (Kaur, T. and et.al., 2014). This factor positive impact on expansion of
retail business like Hollister. Therefore, company requires adopt all technological advance which
help to set up their business in India. Through technology advancement, company adopt online
marketing, so that it help to increase consumers demand and sales of business. This help to
increase revenue of business.
CONCLUSION
This report has summarised that Hollister wants to open new store in India, so that they
have to determine all factors of environment by utilizing the PEST analysis. It can be concluded

that company identify government regulations, populations growth, consumers confidence,
technological advancement help to start the new store in the select country.

REFERENCES
Books and Journals
Kaur, T. and et.al., 2014. Insecticidal and growth inhibitory potential of Streptomyces
hydrogenans DH16 on major pest of India, S podoptera litura (Fab.)(Lepidoptera:
Noctuidae). BMC microbiology. 14(1). p.227.
Kumar, S. and et.al., 2014. Using district-level occurrences in MaxEnt for predicting the invasion
potential of an exotic insect pest in India. Computers and Electronics in
Agriculture. 103. pp.55-62.
Myrick, S. and et.al., 2014. Economic impact of classical biological control of papaya mealybug
in India. Crop Protection. 56. pp.82-86.