PEST Analysis of Hollister in Romania: Market Entry Strategy

Desklib provides past papers and solved assignments. This report analyzes Hollister's potential in Romania using PEST analysis.

Individuals in Society
1

Introduction
Hollister company was created by the parent company Abercrombie and Fitch and company. It is
a high street brand, and there are many stores of this company all over the world. Its aims are to
higher consumers between the age of 14-18. Hollister advertised as Hollister or HCo. Hollister
had a lower pricing point to the company rather than the parent brand.
2

Task
Hollister is an American lifestyle clothing company, looking for open to the new market in the
different countries, so in that case, they apply the pest analysis in the business environment and
macro-social structures that affect the market place. In past analysis, it includes political,
economic, socio-cultural, and technological. This analysis helps to the Hollister company how
each of the factors impact on the company to the new market place.
Political factors: Romania country has poorest members of the European Union, this country is
a unitary parliamentary republic, that is it is France fifth republic. In the political factors of this
country are Trend and forecast for key macroeconomic variables that are useful to make the
major investment decision. This country norms of a political factor are give Freedom of speech
and expression, and the constitution guarantees institutional checks and balances. Romania
country does not pursue an independent branding process than that of the European but its
emphasis on another country to business in their country. In that case, the new Hollister company
can come and open their business in this country. Romania built health care law to secure their
population, so the Hollister company should be protecting their employees from unsafe working
situations, unfair labour practices.
By strengthening its government, raising the anti-corruption fight and transparency of political
processes, of the Romania country shows that its political structure is improved, against the
corruption, so it is the big advantages of the new company Hollister to start their business in this
new country.
Socio-cultural factor: This factor helps the company to start their business in the new country
so follows the rule of this factor is they should know what are the cultural and demographical
aspects of the country. Romania has 18 official ethnic minorities, which own the right to use
their mother-tongue when dealing with the authorities or administration in the areas where they
constitute more than a fifth of the population. In that case, it also benefits the Hollister company
to use their mother tongue language and start a new market. Romania explores their brand and
exploits its historical artefacts, arts, literature, and cultural legacy to better manage its whole
image, as well the information flows related to it. This cultural factor helps the Hollister
company to relate with their cultural, their environment and get the ideas behind how they start
their new market those are relevant as well as relate to their culture.
3

The manager does this analysis for the last few years, so the Hollister company can work with
each other comfortably, and get the knowledge about socio-cultural of the Romania country. The
Hollister company can organise social events for their staff.
Technological factor: Romania has few traditional industries or clusters, the most notable being
those of wood and textiles, The GDP percentage spent on research and development is mostly
low compared to that of other countries. But they improve their percentage and also improve
their research and development at the present period, so in that case, the Hollister company
should compare to the other country GDP, then relate that it is significant or not. Romania world
economic forum has shown the global competitiveness reports and this report shows that there
are chances of in future to build their image, but the competitors in the business environment.
Romania country increases their technology management system so they offer to the Hollister
company is to come and join with them and also match their technology with them.
Economic factor: Romania country economic conditions are Analysis on economic activity,
investment environment, and trade structure of the country, the major parts of this country
economical new management structure is to gain the Trends in savings, investments, and
consumptions. This country improves their reputation, also managing their brands of an
advantages manners for the last years, the Hollister company should come and helps to improve
their marketplace by entering the new market and attract their populations. This company can
apply this formula to retain potential customers and to know the economic growth of the country.
4

Conclusion:
The conclusion behind the PEST analysis is when the Hollister company involve this analysis
with the developing of marketing strategy, it will help to develop effectively, reduce the
insufficient production, increase the growth of business in the new country Romania and also
helps to gain the business spread in the world, and develop the marketing strategy in business
environment so the PEST analysis play an important role in the Hollister company.
5

Reference :
1) Barbara, C., (2017), The European Insurance Industry: A PEST Analysis
2) Stoyanova, Z., Harizanova, H.,2017 Analysis of the External Environment of Green Jobs in
Bulgaria
3) Chapman, A., (2017, 02 07) PEST (PESTLE/STEEPLE) MARKET ANALYSIS TOOL,
Retrieved from Business Balls
6