The main purpose of performing a PESTEL analysis is to identify opportunities and threats.
1. Identify specific factors which impact on the clothing industry in the United Kingdom. For example, exchange rate i.e. exchange rate has an effect on the fashion industry competition.
2. Then, ask yourself ‘so what?’ i.e. you need to discuss the implications of each factor identified in terms of how it creates an opportunity or threat (challenge) for the sector in which Superdry plc operates.
3. Show good insights into the interconnected between factors. For example, UK government’s decision to impose lockdowns and covid-19 restrictions in 2020/21 (political factor), influenced increased consumer attitudes towards online purchase/home delivery (social factor) which has implications for UK clothing companies to develop or improve their online offering. Similarly, the lifting of covid-19 restrictions and high vaccine intake (political and social factors) has improved economic sentiments and output (economic factors) which has increased consumer confidence and pent-up demand to visit stores (social factors).
Below are examples of PESTEL factors to consider but you may identify and discuss others not stated here.
Political Factors: Attempt to identify the main political factors and how they might affect the sector in which Superdry plc operates in the UK. For instance, you could evaluate how political stability of the UK market, government decisions, tax policy, trade restrictions, and tariffs might affect companies.
