Business Analysis of Superdry's Global Operations in Switzerland

This report provides a comprehensive analysis of Superdry's business environment, focusing on its potential expansion into Switzerland. The introduction highlights the importance of adapting to global business changes and the need for companies to analyze external factors. The main body utilizes PESTLE and Porter's Five Forces models to assess the political, economic, social, technological, environmental, and legal factors influencing Superdry's operations. The PESTLE analysis examines Switzerland's stable political situation, growing economy, customer preferences, technological advancements, environmental concerns, and legal regulations. Porter's Five Forces model evaluates the competitive landscape, threat of substitutes, and barriers to entry. The report concludes with a summary of findings and recommendations for Superdry's market entry strategy in Switzerland. This report is a valuable resource for students seeking insights into business analysis and global market entry strategies, and it is available on Desklib, a platform providing AI-based study tools.

Business
Organisations in a
Global Economy

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Pestle analysis..............................................................................................................................3
Porter’s Five Force Model...........................................................................................................5
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
There are numerous changes in global business environment that adversely impact on
growth and sustainability of firm. Company that operates in multinational or different countries
needs to adapt to external changes such as legal law or regulation made by government,
preferences of customers, innovation in technologies to increases its profitability and sales
volume. There are numerous enterprise that are planning to expand their business operation by
entering into new market or country thus manager of firm needs to complete analysis changes of
external environment for achievements of objectives. This report is about Superdry that is public
company established in 2003, 17 years before in retail sectors to earn more profitability. It also
discussed about analysis of business environment in order to make foreign direct investment or
allocation of resources in Switzerland. Several model and theories have been used in report to
conduct internal and external analysis of global business environment so that accurate decision
can be made for foreign direct investment.
Business Overview
Superdry was founded in 2003 and employees close to 5000 distinct individuals on various
operational positions within its hierarchical organisational structure. Superdry conducts its
operations in 65 different countries around the world through approximately 768 retail
establishments (About Us, 2020). Superdry specialises in selling clothing and fashion apparels to
the customers. For the fiscal year of 2019, the total net income generated by the operations of
Superdry totalled up to 95 million pounds sterling, with the total revenue generated by Superdry
totalling to 871.1 million pounds sterling. The main competitors of Superdry include Nike,
Tommy Hilfiger etc.,
MAIN BODY
Pestle analysis
Superdry is one of the most famous brands of UK in retail sectors that provide
qualitative, fashionable and unique design clothing, footwear, cosmetic and accessories to large

number of people that are living in society. But company is recently planning to expand or
allocate its resources to Switzerland in order to attract more customers and enhance overall
profitability of firm. Pestle analysis is powerful tool or model that helps in effective analysis and
evaluation of external factors such as government policies, economic condition of country,
preferences of customers, changes in technology, environment issues and legal implication that
adversely influence business operation and strategy (Teece, 2018). Manager of Superdry by
conducting pestle analysis or macro environment factors is able to take correct decision
regarding company needs to invest or allocate resources in Switzerland or not. Such as:
Political factors: There are certain rules, regulation and laws that are made by government
which needed to be abided by organisation for smooth operation of business and achievements of
objectives. These policies or rules, regulations are made for safety and protection of employees
and customers so that no harm can be caused by firm. Switzerland have stable political situation
thus Superdry can take advantages of this opportunity to grow and expand its business
(Antikainen and Valkokari, 2016). Free trade regulation and globalisation have provided
opportunity to expand its business in new emerging markets such as Switzerland in order to earn
more market share and profitability.
Economical factors: Switzerland is one of the largest growing economies in world with GDP
$703.8 billion in 2019 so Superdry have great opportunity to expands its business in such
growing economic to gain competitive advantages. There are highly skilled, knowledgeable and
qualified employees or labour that helps in effective completion of task and satisfaction of
customers requirements. High infrastructure and more purchasing power of customers illustrated
that it would be great market for Superdry in retail sector in future circumstances.
Social factors: There are various changes in taste and preferences of customers and mostly
people like to be part of organisation that have strong brand image. Therefore, Superdry has
strong brand image and active presence in online sites thus it provides opportunity to company to
easily allocate or invest its capital in new countries for earning maximum market share and
profitability. Company is highly focused towards recent trend and changes in customers
preferences and fashion industry which provide chance to firms to easily meet individual
expectancy. It offers varieties of products and services that have unique design and pattern is
able to attract more customers to be part of organisation (Daniels and et.al., 2016). It also uses

different medium or platform for selling of products and services that helps in inducing large
number of individual to make purchased of firm products as compared to other competitors in
retail sectors. Most of the customers or people that reside in Switzerland are highly attracted and
motivated to have fashionable clothes, accessories and jewellery to look, feel good and pretty as
compared to others.
Technology factors: External global business environment have wide opportunities that can be
used by Superdry to gain competitive advantages in retail sectors. Use of digital technology by
most of younger generation such as facebook, twitter and instragram for online shopping thus
Superdry by offers its product through creating its official websites or increasing its presences in
online sites is able to attract large number of people that want to be part of firm (Schwertner,
2017). Online platform provides ease and comfort to younger generation to select particular
products as per their choice while staying at home. They can easily compare products and
services of one company from another in terms of quality, prices and quantity offered by firms
by using internet connection thus it contributed in making perfect or accurate choice. Superdry
also make use of mobile application so that customers without standing in ques and make
payments of products and get their needs satisfied.
Environmental factors: It can be stated that Switzerland is one of the best destination in world
that attract large number of tourist to visit place for having fun and enjoyments. There are limited
resources in environment so increasing number of tourist or wastage produce by organisation
that are operating in clothing industry have caused threat to health and safety of individuals
(Arnold, Beauchamp and Bowie, 2019). Local residents and government both are highly
concerned about increasing environment issue so Superdry by taking initiatives to reduce amount
of wastage of resources and making optimum utilisation of products can grow and sustain in
competitive market.
Legal Factors: There are numerous laws that are made by each country government to prevent
fraud and unethical practices for safety and betterment of individual living in society. Superdry
need to incurred various legal cost for established and operation of business in new market for
longer run. At the same time it has to ensure health and safety of employees, customers,
implementation of employment law and discrimination for growth and success of firm

(Cherunilam, 2020). Thus company by provide safe working place and equal opportunities to
both men and women can avoid chance of penalty and fines.
Porter’s Five Force Model
The five force model was created by and named after the professor at Harvard Business
School Michael Porter, with the model helping to analyse and identify five main competitive
forces that come to shape the competitive environment of any given business industry and
organisation. This model can be used to evaluate and assess the competitive environment f a
business organisation in addition to analysing the inherent strengths and weaknesses of a
business organisation (Moreno-Izquierdo, Ramón-Rodríguez and Perles-Ribes, 2016). This
Porter’s five forces model can be applied to the market segment of any economy with the
intention of understanding the levels of competition within the various business organisations
within the particular industry, in order to help a business organisation maintain its competitive
advantage and improve its overall financial performance and profitability within the operational
industry. The Porter’s five forces model helps to explain to us why business organisations in
varying industries of Switzerland are able to sustain and generate different levels of financial
profitability through their operations. This part of the report applies the Porter’s five force model
to the operations and functions of Superdry within the retail industry of Switzerland as follows in
order to gain a deeper understanding of the business’s competitive environment:
 Competition in the Industry (High):
The competition within the retail industry of Switzerland is extremely high on account of
the numerous retail business organisation that operate under it which also includes Superdry. As
most of these business organisations within the retail sector of Switzerland conduct their
business operations towards achieving organisational objectives that are similar and conflicting
with one another such as increasing their individual overall customer base, total market share,
overall profits generated etc., at the cost of their competitive business organisation’s
performance, there exists immensely high competition within the retail industry of Switzerland
for the operations and functions of Superdry (Wellner and Lakotta, 2020). In order for Superdry
to observe decreased threat from the tremendous competition that exists within the retail industry
of Switzerland, the business organisation’s leadership and senior management is recommended
to implement business strategies that can help the retail business organisation gain a sustained

competitive advantage over their perceived competing business organisations operating within
the retail sector of Switzerland, allowing for Superdry to conduct its operations within the retail
industry of Switzerland in an effective and successful manner, despite the intense competition
that the business experiences within the retail industry of Switzerland.
 Threat from Substitute Products (Moderate):
The threat from substitute and alternative products is high for business organisations
operating within the retail industry of Switzerland because most of them provide to the
customers goods, products and services that are highly similar to one another, with all of them
being similarly valuable to the consumers. As the number of businesses operating within the
retail industry of Switzerland is high, the customers always have access to alternative and
substitutable products from the consumer retail markets of Switzerland. Superdry itself faces
only moderate threat from the alternative and substitutable products available to the consumers
within consumer markets because when compared to the average retail business organisation
within retail industry of Switzerland, the goods and products manufactured by Superdry have
been increasingly differentiated from the commonly manufactured goods and services that
customers have readily access to from the retail markets of Switzerland (ÖNEREN, ARAR and
YURDAKUL, 2017). The differentiated goods and services of Superdry within the retail
industry of Switzerland allow for the business organisation to decrease the overall threat that it
faces from the alternative and substitutable goods and products available to customers from the
external retail consumer markets by providing the retail customers of Switzerland with
differentiated goods and products that are able to provide increased value to them when
compared to the value provided to customers through the alternative and substitutable products.
 Threat from New Entrants in Industry (Low):
Major business organisations like Superdry face low threat from the new business
organisations trying to enter into the retail industry of Switzerland to conduct their operations for
profits. This is primarily because there exist various entry barriers for new business organisations
trying to enter into the retail industry of Switzerland and start their business operations within the
already highly competitive retail industry of Switzerland. One of the most prevalent entry barrier
relates to the immensely high financial investments required of new business organisations trying

to enter into the retail industry of Switzerland. It is quite hard for new business organisations to
take on such intense risks and procure the financial investments of substantial amounts of
financial resources required for their operations of beginning service within the retail industry of
Switzerland, with this entry barrier decreasing the overall threat that Superdry and other major
business organisations operating within the retail industry of Switzerland. Another major entry
barrier for new business organisations entering into and starting their operations within the retail
industry of Switzerland, relates to the vast and developed operational infrastructure that is
required by a successful business organisation operating within the retail industry of Switzerland
(AYDIN, 2017). As new business organisations cannot hope to create operational infrastructure
that can outcompete the operational infrastructure of major business organisations such as
Superdry, these major business organisations including Superdry do not face any kind of
significant threat from the new business organisations entering into and starting operations
within the retail industry of Switzerland, as these new business organisations can never
outcompete the operations and functions of major industry leaders including Superdry.
 Bargaining Power of Customers (High):
The bargaining power of customers of the retail industry of Switzerland is relatively quite
high. This is on account of the increasing number of business organisations that are conducting
their operations within the retail industry of Switzerland. If the customers of retail industry of
Switzerland are unhappy with the goods and services provided to them by a particular retail
business organisation within retail industry of Switzerland such as Superdry, then they can easily
choose to switch conducting their shopping operations with that particular business organisation,
instead choosing to conduct their retail operations with another business organisation within the
retail industry of Switzerland, with the customers not facing any significant issue or challenge
with regards to switching between various retail business organisations for their shopping
operations (Isabelle, D. and et.al., 2020). As it has become increasingly easy for the retail
customers of Switzerland to switch between the operations of various different business
organisations, this provides them with increased bargaining power within the retail industry of
Switzerland because should they come to grow unhappy or unsatisfied with the goods and
products manufactured by a specific business organisation such as Superdry in relation to the
price, quality or specifications of the manufactured goods, then the retail customers of

Switzerland can easily choose to conduct their retail operations with another rival business
organisation of Superdry within the retail industry of Switzerland, without facing any significant
challenge or issue, providing to them high bargaining power against the various business
organisations that conduct their operations within the retail industry of Switzerland.
 Bargaining Power of Suppliers (Low):
On the other hand, the bargaining power of suppliers within the retail industry of
Switzerland is relatively low. This is because of the high number of suppliers present within the
external environments of the retail industry of Switzerland, with most of such suppliers
providing similar types of services and quality of raw materials to the retail business
organisations operating within the retail industry of Switzerland. Therefore, should the suppliers
of Superdry choose to increase the overall prices of raw materials required by the retail business
for its manufacturing operations, or reduce the overall quality of raw materials, then Superdry
can easily choose to switch its suppliers with the increased number present in the retail industry
without facing any kind of significant threat or issue (Lewis, 2017). This decreases the overall
bargaining power of suppliers of the retail industry of Switzerland and allows for the retail
business organisations to be able to effectively conduct their business operations without
worrying about the bargaining power of their suppliers.
CONCLUSION
Through this report’s findings, it can effectively be concluded that there exist numerous
factors within the internal micro environment and external macro environment of a business
organisations such as Superdry that can have a significant impact and influence on the
operational and financial performance of the business organisation in the consumer markets. This
report makes use of various business models with the intention to analyse the business
environment of Superdry in their efforts to expand their business operations to the market
segments of Switzerland. The report uses PESTLE analysis framework with the intention to
analyse the various factors present in the macro environment of Superdry that can impact and
influence the operations and profitability of Superdry. The report also makes use of Porter’s Five
Force model to analyse the competitive environment of Superdry within the retail industry.
These frameworks allow for us to effectively analyse the operational business environment of

Superdry within the retail industry of Switzerland in order to assess opportunities and threats
present to the business organisation for its future growth and development within global retail
sector.

REFERENCES
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Online
About Us, 2020 [Online]. Available Through :< https://www.superdry.com/about-us>