External Environmental Analysis

Sorry for the excessive amounts of WORDS.

Quick analysis of the macro-environmental forces affecting Sabatini and its market... have a look and please debate anything you think is wrong...

Political/Legal

• - Little affecting Sabatini apart from export taxes to closed markets. Not much of an issue due to a primarily Australasian market where trade is free.
• - Legal obligation to follow Fair Trading Act (1986), Employment Relations Act (2000) etc.

Economic

• - Worldwide recession, national and global debt, little disposable income decreases the spending power and size of Sabatini’s market.
• - Consumers can feel they need ‘retail therapy’ and escapism, and can therefore still want to splurge on luxury, high-quality goods.
• - ‘Investment’ purchases of high-end, classic goods like Sabatini are more durable and less likely to date and consumers are aware this can be cheaper in the end.
• - Using stockists and outlets mean fewer retail overheads and less risk for the company.

Socio-cultural

• - Rise of women in the workforce increases the spending power of the female demographic – they can afford to spend more on clothing.
• - Trends towards environmental awareness and sustainability as highly desirable aspects of garments.
• - Longer working hours and higher stress levels means a higher need for retail therapy, escapism, and the glamour Sabatini White can offer.
• - Struggling NZ economy has lead to a demand for Made in NZ.

Technological

• - Development of whole garment knitting – less wastage, more sustainable, and it may be that this becomes the industry standard in which case Sabatini needs to keep up with technological advances. However if this were offshore how would that affect the Made in NZ competitive advantage?
• - Use of the Internet vs. print media – which will reach more customers? Validity? Sustainability? Usefulness given the age bracket – gaining younger customers but losing older ones?

Environmental

• - How can Sabatini become a more sustainable and ethical company?
• - Corporate Social Responsibility (CSR) and Triple Bottom Line reporting/evaluation – profitability of financial, natural, and social capital
• - Use of wool and the impact on the wool industry (most of Sabatini White’s garments are synthetic)

Industry Structure

• - Competitors, particularly those with a focus on knit
• - Strength of suppliers and stockists
• Australasian market strength (economic/aesthetic/technological etc)

]It's a bit dry.

But I think we need to look into the competitors and competitive advantage - what sets Sabatini White apart? Why would consumers buy this over other brands?