I/ The Exte rnal Environment
1.1. Macro-environment 1.1.1 PESTEL First, we analyse the external environment of your business. For this, we will use the PESTEL tool, which to group the factors that constitute the environment of your business. These factors must be taken in account when things are changing. The company will move at different ways of continuing to its environment. We will doPESTEL of France, a country representative of your global market. Moreover, this country represents 67.5% of your market share.
PESTEL, in your domestic Market: France
1.1.2 Porter’s Diamond Now, we are going to use the “Porter’s Diamond”, still on an external view. This tool suggests that there are inherent reasons why some nations are more competitive than others, and why someindustries within nations are more competitive than other. This is the model of Porter’s Diamond:
Related and supporting Industries
Firm Strategy, Structure and rivalry Factor conditions: - France has a good location. In the middle of Europe, it’s a very open country - The French industry has a good image and a good reputation abroad, which can promoteinternational exchanges.
Demand conditions: - Since 2006, French consumers have purchasing power increases. (+0,6% in 2008) - In 2008, household consumption expenditure slowed significantly, but resists: +0,1% in volume, after +2,4% in 2007. The rise in prices is stronger (+2,8% after +2,1%) due to the surge in prices of food and energy. The purchasing power of income grows more slowly in theseconditions than in 2007, which tends to penalize consumption. To maintain consumer spending, households reduce their savings rate slightly. Supporting industries: - “Chamber of business and industry” allow encouraging research and development with a budget allocated to each sector of activity. - EuroSIMA, governmental business association, can create fund ways to help textile companies
3Firm strategy: - In France, we can see a strong competition, which results in intensely develop the means of production. Indeed, in the textile sector, many companies have their headquarters in France. However, we can also say Europe, in general, has a lot of company in this industr y. 1.1.3 Key Drivers Keys driver of change are forces likely to affect the structure of an industry, sector or market.It will allow us to balance the company, depending on factors of its environment. Economic: - The outdoor industry can bring around tourism activity. France offers a lot of natural spot around the recreation (white, blue and green). The country offers a kind of competitive advantage. Outdoor industry then this may bring this tourist attraction to take advantage of his infatuation. Social: - TheFrench population is composed of 20 to 64 years to over 50%. This means that groups of people are becoming more important and definite. The industry must adapt its offer to all types of people. - Year after year, the French spend more and more of their budget on entertainment. This figure continues to rise, which represents a dynamic unparalleled throughout the industry. However, it attracts newentrants to the market hungry for market share, thereby creating more competition. Technological: - For many years, Internet changed the modus operandi of many industries. The consumer becomes effective on the technological tools, and develop this aspect can only bring positive points for the entire sector. Environmental: - Since the 2000s, a new trend is becoming increasingly important. Ecology nowaffects all types of industries and all types of consumers. The outdoor industry is particularly concerned by this trend. Indeed, the outdoor activity is close to nature. This industry must then “surf” on this trend while doing know. Legal: - In France, any new product or concept can be deposited at the National Institute of Intellectual Protection. This means that if the competition wants to...
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