Business And Business Environment Assignment

Business And The Business Environment Assignment

Introduction - Business And The Business Environment

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Admiral Sportswear is a leading sportswear manufacturer in England, United Kingdom. The sportswear industry was founded in the year of 1914. The industry predominantly manufactured the quality material clothing, footwear, sports accessories, and casual fashionable clothes in the company. The industry tied up with various organizations such as Metro Shoes and Lifestyle to promote their brand through these companies and also take the initiative to sell their products in the global market (Akenson et al., 2021). The company Admiral Sportswear also ties up with many organizations around the world. The company is an official sports kit sponsor of the international cricket team West Indies and England.

Sector variations

Sports clothes

The company produces a considerable number of sports-related things, which are divided into different sectors. The first one is high-quality sports clothes. They produce various types of sports clothes that are mainly used for outdoor training like pure cotton, calico, microfiber, etc. They mainly produce cotton clothes for better sweat absorption and odor management compared to the other materials. Moreover, cotton clothes are more breathable than any other materials (Gage et al., 2018). Except that the company produces calico material clothes which are a substitute for cotton and low in price. They also manufacture microfiber cloths which are made of tiny threads and high in price.

Sports shoes

The sportswear industry manufactured running shoes through the process of cold cement construction. It is a modern and updated style of shoemaking with solid material. It is way better than the little leather shoes. The running shoes are mostly made from PU leather for sustainable running because the high-quality leather material has significantly less chance of damage by water and other things. Moreover, the shoes are covered up with soft materials to make the shoes more long-lasting.

Sports kits

The company provides various types of sports equipment such as bats, balls, caps, gloves, face covers, etc. They use quality materials to produce such things. Moreover, they use high-quality technology to create 3D paintings on these things to make them more attractive. They are focusing on this to make more improvements in their productivity.

Fashionable clothes

Besides sports clothes, the company uses to produce the other fashionable clothes which are inspired by the sports like cricket, football, etc. They use good quality material to manufacture these clothes which are high in quality, and as a side, it is fashionable too. The people of England mostly prefer this sports industry to buy fashionable clothes.

Market position

The sportswear industry Admiral Sportswear is a leading manufacturer in England and is expanding its business in the global market too. Due to the covid 19 pandemic situation, the global market of this sports industry faces a tremendous amount of loss of 111.7 billion in the year 2020. Still, the global market is rapidly growing, and the company might reach over 200 billion in the coming years, which is a substantial numerical difference. The company has a significant disadvantage from the renowned shops and clothing brands, but they are upgrading their marketing strategies to avoid this tactful situation.

The company majorly produces sports clothes, and they have a vast potential to create sustainable growth in this sector. Here is a brief discussion of this particular sector, its growth possibilities, and its vision for the future.

Products

The sporting clothes are produced mainly by the sportswear industry Admiral Sportswear. They provide a considerable variation in their clothing sector. They use high-quality cotton fabric, microfiber, spandex, and calico to make their clothes (Jones et al., 2021). The majority of sportspeople love to use their cotton and microfiber cloths which have the best quality and affordable price.

Services

The sports industry Admiral Sportswear is leading their business in more than 45 countries like North Africa, Europe, the United Kingdom, etc. The significant factor of their products and services is that they are the cricket kit sponsor of international cricket teams England and West Indies, which is an excellent achievement for the sports industry.

Mission and vision

Though they are specialists in producing sports garments, that's why they have a tremendous opportunity to create future possibilities in this sector. The perspective of this sports industry, Admiral Sportswear, is to make a massive turnover in their garments productivity. They have been more focused on making innovative, high quality and unique sportswear. Due to the changes in market trends, the company makes a huge difference in its marketing strategy to understand the needs and wants of its customers (Nash et al., 2020). The future vision of this sports industry is to develop the quality of its products and expand its business in the global market with huge possibilities. Moreover, they focus on improving the designs and materials of their clothes to make their business more profitable.

Fact sheet

Here is a fact sheet of the sectors of Admiral Sportswear.

PESTLE Analysis of Admiral Sportswear

Admiral Sportswear is a pretty famous brand among customers and is often regarded as the biggest sportswear brand in the industry. However, the company has recently planned to expand its distribution channel (Ahonen, 2022). The PESTLE analysis will help to understand the various external business factors that the company has to keep in mind before expanding its distribution channel. The PESTLE report of the company is done below:

Political Factors

Political factors are the factors that are not often seen outside of the company but play a crucial part in the company's position in the market and its survivability dimensions. The political factors mainly decide the number of goods the brand can produce and what are the profit rates from the company’s sales. Before the company expands its distribution channels, Admiral Sportswear should choose a country where the tax rates are low and a country with a proper international tax managing framework. This can help the company to reduce various costs including the import-export cost, which will eventually result in higher profits.

Economic Factors

Admiral Sportswear is a respected name in the sportswear industry and hence the company’s chances of getting into economic trouble are less. However, some economic factors can adversely affect the biggest companies. Market collapses are the biggest risk that can affect every industry. The customers can suddenly choose to buy low-end cheaper products and avoid expensive products from brands like Admiral Sportswear. Increased labor costs in the company's manufacturing units may also lead to a sudden increase in the prices of the brand's products (Houyin, Yangting, and Hong, 2021). For these reasons, the company should ensure proper pricing for its products before expanding its distribution channels and should have backup plans built whenever the labor pricing goes high.

Social Factors

Building a good bonding with the society in which the business is expanding its distribution channel is a crucial factor in ensuring success in the long run. This means, Admiral Sportswear needs to ensure it provides social messages through its products. For example, the company can promote its sportswear items through a social message that will focus on maintaining a healthy lifestyle (Savi? et al., 2018). This will provide a reason for the customers to buy the company’s product. Health-conscious people or people who are shifting towards a health-conscious lifestyle can become the potential target market for the brand. This whole process can increase the sales of the company and can make the brand’s expansion a successful one.

Technological Factors

The next is the list is Technological Factors. Technology is a crucial factor that can directly impact a brand’s business operation (Kaviani et al., 2020). Admiral Sportswear company needs to implement proper technologies in its products during the expansion of its distribution channel. Technology can be used in various aspects, from interacting with the customers to designing a unique product. The proper use of social media can also play a crucial part in the brand’s expansion process. Before expanding its distribution channel, the brand can promote its products through various social media platforms. This will not be a hard task for Admiral Sportswear because of the company’s popularity. The company has several active followers on its various social media pages and putting information about the products on these pages can promote the products directly to a huge customer base.

Legal Factors

Every company should keep the various legal factors before expanding into a new market. The improper understanding of the legal factors of a market can put the company in various legal constraints in the future. Admiral Sportswear should study the various laws of the areas in which the brand is expanding its distribution channel. The company should avoid any business operation which is against the local law. This will help Admiral Sportswear to start a hassle-free and clean business.

Environmental Factors

Nowadays, keeping the various environmental issues in mind is very important for a successful business. Admiral Sportwear’s factories produce a lot of toxic gases which are causing air pollution. It has been even observed that the factories are responsible for polluting the rivers too (Mou and Cheng, 2021). This is a concerning issue for the company and can put the company under several environmental constraints in the future. For this reason, the company has recently taken steps to reduce the impacts that it is currently causing to the environment. The company has also aimed to be more eco-friendly by implementing many environmental strategies.

SWOT Analysis of Admiral Sportswear

The SWOT analysis will be used here to understand the various internal factors of Admiral Sportswear. The analysis will provide insights into the strengths, weaknesses, opportunities, and threats of the company. The SWOT analysis of Admiral Sportswear is as follows:

Strengths

There are many strengths of Admiral Sportswear. Being the global leader in the sportswear industry, the company has an immense brand value. The name of the company itself is an assurance for its products and it is very for the firm to introduce new products in the market. The huge customer base is also a notable strength for the company. The brand’s customer base is loyal and bigger than any other company in the industry. Admiral Sportswear’s brand value has also helped the firm to collaborate with various other brands which helps the company to promote its products easily (Zhan and Tan, 2020).

Weaknesses

Being a huge company does not mean that the firm is not vulnerable to any risks. In the research conducted, it has been observed that the firm has a few weaknesses. The major weakness of the firm is the bad labor conditions. Some of the major labor issues of the firm are child labor, poor working conditions, and forced labor (Li, Chen, and Ai, 2019). This has put Admiral Sportswear in many legal constraints which have caused many losses for the company. It has also been seen that the company is dependent only on a few markets. This is a major weakness for the company too.

Opportunities

The company is already successful in many nations and is doing quite well in the global market. However, there are a lot of potential opportunities that can help the brand to flourish even more in the sportswear industry. The company’s business operations are becoming successful in countries like Brazil, China, and India (Gawrysiak et al., 2020). The company’s use of integrated technology on its products also opens various opportunities for the brand. The world-class technologies used by the brand have helped to increase its sales to a great extent.

Threats

Although the company is regarded as the top sportswear brand, still there are a lot of threats that can harm its business progress. Some of the top threats to Admiral Sportswear are counterfeit products and increasing competition (Modak et al., 2020). The company has many rivals in the market and these brands are making similar products at a lower price. This can harm the company’s customer base and the customer may shift towards other brands. Counterfeit products on the other hand are a great threat to the brand too. Many local factories are making similar products as the brand and the products are being sold to local markets at cheap rates.

Recommendations

After conducting the PESTLE and SWOT analysis of Admiral Sportswear, many recommendations have been found that can improve the company’s process of expanding its distribution channels. The recommendations are:

• The company should implement proper pricing strategies for different markets. This can help the company to gain a bigger customer base in the new market and can help in its expansion operations.
• Before organizing any expansion program, the company should make sure to understand all the legal aspects of the new market. This will help Admiral Sportswear to avoid any legal constraints that can hamper the business operations.
• Understanding the competitor’s business strategies is also very crucial for the company. Admiral Sportswear should spend considerable time understanding the business assignment strategies of the brand’s various rivals. This will help the company to come up with better ideas and will give the brand a competitive edge.
• The company should work on improving the working conditions of the factory laborers. The poor treatment of the laborers working in the company can put a negative impact on the brand's image that can hamper its business operations.
• To successfully expand its distribution channels and achieve success in the market, the company needs to conduct proper advertising practices. The customers should know about the products properly and this can be done through effective advertising.
• It has been observed that the company puts a lot of stress on the environment. The company should actively work to reduce this factor or else Admiral Sportswear can face environmental constraints from many organizations.

Conclusion

This project aimed to gain a detailed understanding of the various business practices done by Admiral Sportswear to maintain its position in the market. The project has also helped in the detailed understanding of the various risks and threats that the brand can face while expanding its distribution channel. PESTLE and SWOT analysis were used to understand the various external and internal factors of the company. Based on the study, many recommendations are also made which can help the brand to find success in its expansion process.

References

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