of your Essay Sub Paper Due Introduction Big Skinny is a company in USA which provides slim wallet solutions. Their products are ultra slim, flat and petite unlike the regular wallets. They use ultra thing nylon fiber in their product to provide the best. Big skinny has made its space in the USA market over the last years and now wants to expand its market into UK. The wallets are unique and are specifically designed to organize all the plastic cards, cash and everything else that a person may need it for.
They claim that their wallets perform 50% better than the usual wallets and offer more than 40 designs to choose from. For jetsetter as well they have passport holders and travel wallets to take care of all the necessary documents. Their designs are extremely thin, slim and flat which serves for the company’s pride. PESTEL Analysis To be completely prepared to launch into a new market, a business needs to be pro-active and be ahead of any changes rather than making bad choices. The PESTEL analysis will give an idea about UK’s market in terms of political policies, economic changes, social factors, technological factors and legal factors.
Political policies relate to government’s influence which can have a significance impact on companies. It also takes into account the priority of public spending on major markets. Political policies welcome the business from EU and other countries, which might help Big Skinny in penetrating and expanding in the new market. Economic factors are linked to the social ones. The companies in UK are going through a series of fluctuations association with the general booms and recessions in the economy. It impacts all the current and prospective companies in the same way and the new companies might have to deal with a few risks associated with it.
Big Skinny has a strong background and enough experience to deal with the uncertainties. Businesses are encourage in UK by attractive interest rates and high demand and purchasing power. Social factors are the tastes, behavior and lifestyle of the UK customer. The age structure of UK is young with a high preference for fashion and convenience.
The company will penetrate well due to their preference for these things. Technologically UK is one of the most advanced nations with state of the art production facilities and opportunities to expand businesses. Creative design and innovation is already a distinctive feature for the company and it can really utilize it by expanding more into the market of UK. Organizations need to be sensitive to technological innovation and Big Skinny is a leader in breakthrough technological products with its highly thin fabric and design. For legal purposes UK is a strategic market.
European Union has been increasing its competition on European routes and the regulations are also getting stringent. But economically and socially UK is a perfect platform to expand since incomes are rising and interest rates are lowering every day. UK is also very concerned for the environmental laws which make it difficult for the organizations to maintain costs. Socially, the preference of people for new things is increasing and generally people maintain a high life style in UK specially London. UK is also very strict on the labor laws which the company needs to bear in mind.
SWOT Analysis Strength Big Skinny is a trademark for years in USA and it has enjoyed a considerable share and its major strength is its unique design. The product which it offers is not available with any other company. Despite the downturn, fashion companies continue to grow and the fashion industry of UK is at its peak. This is contributed by the ever growing population and purchasing power. Big skinny has the advantage over others by providing something unique and has a rich experience under its belt.
Weaknesses Big Skinny has limited international exposure and it has always operated in USA only which may be a challenge for the management since it is the first expansion it is undergoing. \ Opportunities Big Skinny has unlimited opportunities in terms of expanding in the UK market. It can diversify its product range into slim bags, laptop bags, school bags and much more with its attractive design. Threats Major European brands like Zara operate in UK which will be an intense competition for the Big Skinny Company. Those brands have a market reputation and most of them are premium brands.
To operate successfully Big Skinny has to spend a lot on advertisement and creating awareness for its brand. Works Cited Black, S. & Museum. , V. a. A., 2012. Knitting: fashion, industry, craft. London: V & A Publication. Jeffrey, M. & Evans, N., 2011. Costing for the fashion industry. Berg: Oxford. Lewis, H. G., 1996. Silver linings: selling to the expanding mature market. Chicago: Bonus Books.