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Summary Unit 29 - Understanding Retailing (21014c)
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Summary of 7 pages for the course Unit 29 - Understanding Retailing at PEARSON (Unit 29)
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Unit 29 understanding retailKlein Luyindula
P4
Identify the competitive factors, in the retail environmental, a selected
organization faces.
-In this assignment I will identify the competitive factors within the retail
environment. The business in which I will be investigating the competitive factors of
will be Gucci. The competitive factors which I will look at will be in relation to Gucci.
Retail classification
-Gucci is a luxury fashion brand which was founded in 1921 in Florence, Italy in
where the business currently resides in. The business began as a small local business
which then quickly build a large reputation for themselves with their attractive
product line of handbags, shoes, accessorizes, make up, fragrances and home
decoration. Now as the businesses reputation grew so did the retail environment and
the economy, with doing so this forced Gucci to quickly adapt to the Environmental
change for example making the transition of operating out of a retail store to
creating an online website and selling products off that platform. This example is one
key factor to Gucci's success as it has helped to drive the businesses success as it has
allowed them to grow with the time and gain more customers.
The Retail environment
Internal & External Change
-Internal changes can arise from inside the organisation and relate to the internal
functioning of the organizations. This may include low performance, low satisfaction,
conflict or the introduction of a new mission, new leadership.
-External changes are changes which occur within the business, which results in the
environmental development of technology, globalisation of markets, new
competitors on the market as well from internal environment such as the changes in
the direction of the businesses objectives and the ideology of the
company/workforce.
Macro-environment
-Macro environment is a remote environment of a firm, the external environment in
which it exists.as a rule this environment is not controllable by the firm, it is too huge
and very unpredictable to control. Macro-environment factors affect Gucci in many
ways because the Marco environment is a dynamic factor and keeps changing
drastically, leading to an increase in avenues, competitions and complexity. efficient
financial management calls for better financial decisions. Effectives evaluation of
, Unit 29 understanding retail
Klein Luyindula
projects and other situations is very critical in financial decisions. The evaluation calls
for an analysis of various factors belonging to the macro environment, financial
management a specialized field of general management is affected to a large extent
by macro environment situations.
Pestle analysis
Pestle analysis is a tool in which is used to gain a macro picture of an industry
environment. The PESTLE stands for political, economic, social, technological, legal
and environmental factors.
-Gucci is a luxury fashion brand which is therefore regulated by the FDA. So, the
business is supposed to maintain a firm standard of the laws that are set out by the
FDA with consistency, also many different markets across the world have different
sets of regulations that are either lenient or strict. There is also a competitive pricing
by Gucci's competitors and that is one main factor that Gucci has kept in mind at all
time. The political point also matters greatly as there can be some unrest at certain
times due to the markets or due to the inflation of the sales of products can
decrease. Most importantly, cross border situations are quite different hence why
Gucci must stay in line with all those policies and changes so that they can adapt to
the environmental changes accordingly.
-As the recent economic downturn has plagued the economy, as many companies
had to restructure their sales and marketing and campaigns also, with diminishing
profits they had to undergo a downsizing strategy and rethink upon how they could
come up with a way of penetrating the market. Economic conditions have the
highest influence on Gucci regardless of what trade it is in. Gucci's economic
downturn had started back in 2017 when the businesses sale had increased
drastically mainly to the fact that their new styles of products had exploded on the
fashion scene and many of their customers which were young teens where
purchasing their clothing items to wear as casual clothing.
-The social factors that greatly impact Gucci are that it is a luxury fashion brand, and
the business has a huge reputation which is why it is important for the brand to
remain in line with the strict and stark differences of cultures within the world, also
Gucci has to find ways of being able to communicate its image as a global brand so
that the consumers can associate it with themselves as that helps to connect the
world together. Usually, the social implications are seen in the marketing campaigns
for example certain counties are very religious, which means there certain clothing
items which are not suitable to wear, in doing so this has allowed Gucci to keep in
line with their customers within the region of religious countries and design more
appropriate clothing to cater to them customers.
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