The paper "International Marketing of Transit Clothing" is a wonderful example of an assignment on marketing. To make any strategic, investing or business decision it is important to gather the relevant information so that decisions are better. This requires complete information about the market especially the economic scenario and other environmental factors that have a role in an economy so that the business plans accordingly (Gooderham & Nordhaug, 2003). The PESTEL analysis for Transit Clothing looking to enter Vietnam is as follows Political Environment This helps to determine the role of the government in the industry, the degree of interference that the government has in the daily affairs, the different laws prevalent in the country with respect to tax, labor, and environment and so on.
This helps to determine both the positives and negatives about the economy from the government perspective and helps to understand the role that the government looks to carry out. Clothing presents a huge opportunity in Vietnam and even the Vietnam government is keen to look at developing the clothing industry and is ready to provide different types of subsidy to support the industry.
The government has also looked to provide tax relief so that more and more people get attracted to it (Jeffrey, 2003). The economy further has a stable government and has elections every five years. The fact that the Vietnam economy has seen an increasing demand for clothing exported from Australia provides an opportunity where the different players can look to take advantage of the political situation and develop a market for its products and services. Proper government regulations which are presently seen between the Australian and Vietnam government will further give a boost and help to strengthen the relationship thereby ensuring better trade relations. Economic Environment With an increase in the real disposable income of Vietnam & Australia people have started to spend more on durable like clothing.
The population has witnessed an increase in their purchasing power which has ensured that people purchase more and more clothes and other durables and have replaced the old ones with the new ones (Jeffrey, 2003). The fact that the Vietnam economy has seen an increasing demand for clothing exported from Australia provides an opportunity where the different players can look to take advantage of the political situation and develop a market for its products and services (Peng & Luo, 2000). His only concern is that the economy has witnessed widespread fluctuation in the exchange rate which is a concern for the economy as it has resulted in speculation activities and also made it difficult to carry international business easily.
Along with it the rise in inflation rate has reduced the purchasing power and needs to be looked in so that better strategies are developed to deal with those as it will provide an opportunity through which the business improves.