Analysis of Global Business Environment in Retail Fashion Industry

This report provides a comprehensive analysis of the global business environment, focusing specifically on the retail fashion industry. It begins with an introduction outlining the importance of market audits before entering the industry, emphasizing tools like SWOT, PEST, and Porter’s Five Forces. The report then delves into micro and macro factor analyses. Micro factors include an overview of the UK retail fashion market, its key players, and market value. A detailed SWOT analysis highlights the industry's strengths (e.g., UK design creativity), weaknesses (e.g., skill gaps), opportunities (e.g., online sales growth), and threats (e.g., Brexit). Macro factors explore the impact of political, economic, and social factors, such as political instability due to Brexit, consumer purchasing trends, and the need for technological advancement. The report concludes that a thorough market analysis is crucial before investing in this industry, and businesses must be aware of these factors for success. References are also included.

RUNNING HEAD: GLOBAL BUSINESS ENVIRONMENT
GLOBAL BUSINESS ENVIRONMENT
Name of the Student:
Name of the University:
Author’s Note:

1GLOBAL BUSINESS ENVIRONMENT
Table of Contents
Introduction:....................................................................................................................................2
Impact of Macro and Micro factors:................................................................................................2
Micro factor analysis:..................................................................................................................2
Macro factor analysis:..................................................................................................................3
Conclusion:......................................................................................................................................4
References:......................................................................................................................................5

2GLOBAL BUSINESS ENVIRONMENT
Introduction:
Before investing in the retail fashion industry, conducting a market audit to get a clear
idea about the market is necessary. There are certain tools like SWOT analysis, PEST analysis,
Porter’s five forces analysis, which are useful to complete the market analysis.
Impact of Macro and Micro factors:
Micro factor analysis:
The products of the retail fashion industry contain clothing, footwear and accessories.
Fashion retailing is the business section which connects producers and consumers. Burberry,
Mark & Spencer, ASOS and Next Plc are the ruling this industry of UK. For the last seven years,
the market of retail fashion industry of the UK is growing. In 2020, the market value of this
industry is expected to be 66.6 billion euros (Sabanogl 2020). In 2018, the annual expenditure on
clothing, depending on the sales value, reached 58.3 billion euros (Sabanogl, 2020).
SWOT analysis of Retail fashion industry:
Strengths
(Positive
factors)
 The creativity of UK design for the retail fashion industry of the
UK.
 The variety of styles, products and designs on the high street is a
strength.
 The high-class education system is helpful to maintain the elite
quality design and product (Britishfashioncouncil.co.uk 2018).
 Specialist manufacturing of the UK is a strength.
 The innovation skill of retailers in the UK is excellent

3GLOBAL BUSINESS ENVIRONMENT
(Britishfashioncouncil.co.uk 2018).
Weaknesses
(Negative
factors)
 The appropriate linkage between scientific discipline and design.
 The skill gap is present in the labour market is a weakness for this
industry (Britishfashioncouncil.co.uk 2018).
 There are certain barriers such as risk, exclusive costs of collection,
and attitude of financial institutions towards new talent, which are
affecting the success of the new talent (Britishfashioncouncil.co.uk
2018).
Opportunities
(Positive
factors)
 The importance of online sales is enhancing, which can be an
opportunity for this industry.
 New mass markets are developing, which is an opportunity for this
industry.
Threats
(Negative
factors)
 Due to Brexit, the UK is politically and financially unstable.
 Economic stagnation is a threat.
 The pressure for the sustainable product is growing
(Britishfashioncouncil.co.uk 2018).
Macro factor analysis:
The success of the retail fashion industry can be hampered due to the unstable political
situation. At present, political instability due to Brexit is creating an adverse impact on this
industry, which can be managed by insurance and deal with the political factor on a daily basis
(Gupta and Gentry 2018).

4GLOBAL BUSINESS ENVIRONMENT
In a poor economic condition, consumers will not purchase products as they can't afford
it. To ensure profit, this industry has to react accordingly.
Social factors like consumer preferences and purchasing trends of the consumer of the
UK can affect the success of the retail fashion industry (Gupta and Gentry 2018). Retail
corporations have to conduct in-depth market research to identify and manage these issues.
By using technical advancement, this industry can ensure a smooth business operation.
However, to achieve competitive advantage technological advancement must be used for product
innovation.
Conclusion:
Thus this report can be concluded that the retail fashion industry of the UK can be
affected by several factors. Before investing in this industry, conducting a market analysis to get
a complete idea about the market will be helpful. Business organisations, who are operating in
this industry must have a clear idea about these factors.

5GLOBAL BUSINESS ENVIRONMENT
References:
Britishfashioncouncil.co.uk, 2018. The Value Of UK Fashion Industry. [online]
Britishfashioncouncil.co.uk. Available at:
<https://www.britishfashioncouncil.co.uk/uploads/media/62/16356.pdf> [Accessed 20 March
2020].
Daradkeh, Y.I., Gouveia, L.B. and Sen, S., 2018. Strategic thinking and brands move to the
digital transformation. MATTER: International Journal of Science and Technology, 4(1).
Gupta, S. and Gentry, J.W., 2018. Examining its micro and the macro perspective. Eco-Friendly
and Fair: Fast Fashion and Consumer Behaviour.
Sabanoglu, T., 2020. Topic: Apparel Market In The UK. [online] www.statista.com. Available at:
<https://www.statista.com/topics/3348/apparel-market-in-the-uk/> [Accessed 13 March 2020].