Pest Analysis of Gucci in Malaysia
External Environmental Analysis on PEST, PORTER’S FIVE ANALYSIS & SWOT
Introduction
The purpose of this report is to examine the external environment in Malaysia that affected Gucci, one of the Italian high fashion luxury brand. PEST analysis, competitive analysis and SWOT have been used by investigators to achieve the target.
Gucci- Company Overview
Gucci is among the sophisticated international fashion company which produces high quality of clothing, fragrances, accessories, handbags and shoes. Guccio Gucci founded Gucci in Florence in 1921. It has now become one of the biggest Italian brand which operates about 278 operated stores worldwide, and also franchisee its product worldwide by selling them in the department store. According to Business Week magazine, Gucci generated $4.2 billion in revenue worldwide in 2008 and climbed to 41st position in the magazine’s annual 2009 as the “Top Global 100 Brands” chart created by Interbrand. Gucci also provides an online store worldwide through their website Gucci.com. (REFERENCES: WIKI, URBAN DICTIONARY)
PEST ANALYSIS
The PEST framework will analyze the impact of the unpredictable issues that will rise when Gucci operates in Malaysia by identifying the influential factors that have a strong effect on the business.
Political * Association of Southeast Asian Nations (ASEANS) represents the Malaysia’s main free trade removing all barriers reassuring western companies, including Gucci to make way into starting business in Malaysia. Treaty of Amity and Cooperation in Southeast Asia (TAC) in July 2009 was signed by Secretary Clinton to enhance the US political relations with ASEAN. President Obama held a meeting between the ASEAN leaders, which then tightened up the relation between U.S and East Asia region. This is important because U.S makes up to 10.9% of the exports and 11.2% of imports out of all Malaysia’s trading partners. The growth of Gucci’s international business section is predicted to be
Introduction
The purpose of this report is to examine the external environment in Malaysia that affected Gucci, one of the Italian high fashion luxury brand. PEST analysis, competitive analysis and SWOT have been used by investigators to achieve the target.
Gucci- Company Overview
Gucci is among the sophisticated international fashion company which produces high quality of clothing, fragrances, accessories, handbags and shoes. Guccio Gucci founded Gucci in Florence in 1921. It has now become one of the biggest Italian brand which operates about 278 operated stores worldwide, and also franchisee its product worldwide by selling them in the department store. According to Business Week magazine, Gucci generated $4.2 billion in revenue worldwide in 2008 and climbed to 41st position in the magazine’s annual 2009 as the “Top Global 100 Brands” chart created by Interbrand. Gucci also provides an online store worldwide through their website Gucci.com. (REFERENCES: WIKI, URBAN DICTIONARY)
PEST ANALYSIS
The PEST framework will analyze the impact of the unpredictable issues that will rise when Gucci operates in Malaysia by identifying the influential factors that have a strong effect on the business.
Political * Association of Southeast Asian Nations (ASEANS) represents the Malaysia’s main free trade removing all barriers reassuring western companies, including Gucci to make way into starting business in Malaysia. Treaty of Amity and Cooperation in Southeast Asia (TAC) in July 2009 was signed by Secretary Clinton to enhance the US political relations with ASEAN. President Obama held a meeting between the ASEAN leaders, which then tightened up the relation between U.S and East Asia region. This is important because U.S makes up to 10.9% of the exports and 11.2% of imports out of all Malaysia’s trading partners. The growth of Gucci’s international business section is predicted to be
References: 3) Porters Five Forces Model of Competition. 2012. Porters Five Forces Model of Competition. [ONLINE] Available at:http://www.managementstudyguide.com/porters-model-of-competetion.htm. [Accessed 12 November 2012]. 4) SWOT Analysis - Strategy Tools from MindTools.com . 2012. SWOT Analysis - Strategy Tools from MindTools.com . [ONLINE] Available at:http://www.mindtools.com/pages/article/newTMC_05.htm. [Accessed 12 November 2012]. 5) Malaysian Institute of Economic Research. 2012. Malaysian Institute of Economic Research. [ONLINE] Available at:http://www.mier.org.my/outlook/. [Accessed 12 November 2012]. 8) Porter 's 5 Forces Definition | Investopedia . 2012. Porter 's 5 Forces Definition | Investopedia . [ONLINE] Available at:http://www.investopedia.com/terms/p/porter.asp#ixzz2BWiertvE. [Accessed 12 November 2012]. 9) Porter 's Five Forces Model: analysing industry structure. 2012. Porter 's Five Forces Model: analysing industry structure. [ONLINE] Available at:http://www.tutor2u.net/business/strategy/porter_five_forces.htm. [Accessed 12 November 2012]. 10) Malaysia GDP Growth Rate . 2012. Malaysia GDP Growth Rate . [ONLINE] Available at: http://www.tradingeconomics.com/malaysia/gdp-growth. [Accessed 12 November 2012]. 11) Malaysia Population . 2012. Malaysia Population . [ONLINE] Available at:http://www.tradingeconomics.com/malaysia/population. [Accessed 12 November 2012].