Frasers Group is a sportswear, footwear, cosmetic, and apparel manufacturing British multinational company. The company used to go by the name of Sports Direct International and it started its business in 1982. Today, we’ll discuss the Sports Direct PESTLE analysis of Frasers Group; it focuses on external environmental factors like; political, economic, social, technological, legal, and environmental factors.
Political Factors Impacting Frasers Group
Some of the main political factors in the Frasers Group PESTLE analysis of Sports Direct are as follows;
I-Brexit Deal
The recent Brexit deal has made business operations difficult for all British businesses and companies to carry out trade in the neighboring European countries. Frasers Group Sports Direct should become aware of the changing regulations of various countries after the Brexit deal which led Britain to get out of the European Union.
II-Government Investigation
The government regulations are very strict for retail manufacturing companies. In fact, the government and the regulatory department regularly launch investigations to check the quality and performance of the retail sector. The changing regulations and the regular evaluation process have made it difficult for the retail sports brand to remain profitable.
III-Political Stability
A stable political environment plays a key role in the growth of businesses and companies. Frasers Group Sports Direct sources material, supplies, and goods from various countries worldwide. The political turmoil, conflicts, roadblocks, and other challenges would make it difficult for suppliers and vendors to deliver supplies to the company for production and manufacturing. As a result, it causes delays and disruptions in the company’s operations.
Economic Factors Affecting Frasers Group
Some of the main economic factors in the Frasers Group PESTLE analysis of Sports Direct are as follows;
I-Economy
The country’s economic environment plays a key role in the growth and development of the country. When people have a stable source of employment and job opportunities, they will have sufficient disposable income. They’re willing to spend it on luxury products and goods to satisfy their needs and requirements.
II-Exchange Rate
Frasers Group Sports Direct is operating its business worldwide in terms of material sourcing and product trade in various currencies. The currency exchange rate is highly unstable and volatile and it keeps changing its price due to various political and economic factors. A small change in currency exchange rate would significantly impact the cost and expenses, and reduce the company’s revenue and profitability.
III-Consumer Spending Pattern
The consumer spending pattern in the particular economy directly impacts the business operations of Frasers Group Sports Direct. The retail company should thoroughly research the consumer spending habits within the particular country before launching its operations.
Social Factors Impacting Frasers Group
Some of the main social factors in the Frasers Group PESTEL analysis are as follows;
I-Health and Fitness Trends
The health and fitness trends have been increasing significantly in recent years. It is due to the fact that people want to live and fit life and they’re buying sports products and accessories to perform sports activities. However, it presents a great opportunity for the Frasers Group Sports Direct to develop and introduce sports products to attract the attention of the customer market.
II-Brand Switching Easy
The brand loyalty rate has declined among the targeted customer market and they could easily switch from one brand to another relevant to their needs and preferences. In order to retain the attention of customers, Frasers Group Sports Direct should keep developing unique products and goods relevant to the customer market trends. It helps the company to remain relevant.
Technological Factors Affecting Frasers Group
Some of the main technological factors in the Frasers Group PESTEL analysis of Sports Direct are as follows;
I-Tech Oriented Store
Frasers Group Sports Direct is developing and launching tech-based stores and updating the old stores with the latest technology. The latest tech stores help customers to offer a better user experience and improve the overall customer satisfaction level.
II-Data Analytics
Frasers Group Sports Direct has invested a significant amount of capital resources in the latest data analytical technology. It allows the retail company to learn a key insight about the customer shopping data, their needs and preferences, and their demand for the upcoming seasons. Most importantly, it helps the company to deal with the over-stocking and under-stocking issues.
III-Automated Warehousing
Frasers Group Sports Direct is investing a significant amount of capital resources in the latest automated warehousing technology. It allows the retail chain sports brand to efficiently manage the warehousing stock with automated and robotic technology. However, they could efficiently detect and recognize the stock on time without wasting any time.
Legal Factors Impacting Frasers Group
Some of the main legal factors in the Frasers Group PESTEL analysis are as follows;
Regulatory Compliance
Frasers Group Sports Direct needs to comply with the government regulations of different countries. They consist of consumer health and safety, data privacy, data protection, and other legal and regulatory challenges. However, regulatory challenges would help the retail brand to smoothly perform its operations without any delays and disruption.
Environmental Factors Affecting Frasers Group
Some of the main environmental factors in the Frasers Group PESTEL analysis of Sports Direct are as follows;
Sustainability Initiative
Frasers Group Sports Direct needs to make a strong commitment to environmental sustainability. It comprises taking eco-friendly initiatives like using renewable sources of energy for production, ethical sourcing, and others. Environmental sustainability initiatives would help the company to keep up with the growing customer market trends and demands.
Conclusion: Frasers Group PESTLE Analysis |PESTEL Analysis of Frasers Group |External Environmental Analysis of Frasers Group | Strategic Analysis of Frasers Group
After an in-depth study of the pestle analysis of Frasers Group Sports Direct; we have realized that Frasers Group Sports Direct is the world’s leading retail chain brand. If you are learning about the Frasers Group PESTLE analysis; then you should keep in mind the abovementioned external environmental factors like; political, economic, social, technological, legal, and environmental.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
