Published by MBA Skool Team, Last Updated: February 21, 2021
PESTLE Analysis of Fila analyses the brand on its business tactics. Fila PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand.
PESTLE analysis is a framework which is imperative for companies such as Fila, as it helps to understand market dynamics & improve its business continuously. PESTLE analysis is also referred to as PESTEL analysis.
The political factors in the Fila PESTLE Analysis can be explained as follows:
Fila has its operations in many nations. So, it is important to have political connections to establish the manufacturer plants and to enter new markets. The parent company has good trade policies with both China and USA which is huge market for the company. To maintain and operate smoothly, there should be a balanced political connection between Nations to Nations. The policies for the doing business also important for the company. Fila has global supply chains which should not be disturbed, so it is important to maintain good political connections within country and host countries.
Below are the economic factors in the PESTLE Analysis of Fila:
Fila has a global presence & hence its business is impacted by several financial factors.
Due to pandemic, there is huge impact on the manufacturing and supply chain. This has impact on the economic activity of the company and its stake holders. The disposable income level of the people has decreased. This makes the consumers to choose the options clearly. The Foreign Exchange risk also impact on the company profits. The vaccination process and the improve in the manufacturing and supply chain recently will aid to company’s better performance. The manufacturing plants are mainly located in China and Vietnam where the labour is cheap and the countries have better trade connections.
Following are the social factors impacting Fila PESTLE Analysis:
Social behaviour collectively influences the buying behaviour of a sports brand like Fila. The people are becoming more health conscious than before. They want to be included in any physical activity daily. They want to improve its athleisure and also want to be wear more fashionable and comfort sports apparel. They are spending much on sports equipment and they also choosing for quality rather than price. The collaboration with BTS will have great impact on the sales of the products. The children are more interested in sports and youth are concentrating more on the health at the same time style. So, it is important for the company to provide both the style and comfort which aids to the sales.
The technological factors in the PESTLE Analysis of Fila are mentioned below:
To manufacture the different products with same shape and different sizes and in large numbers there is a need of flexible and robust process. For this the new technology will aids for the process. As Fila will develop new products there is need of improvement in research and development. The usage of internet will aid in sales and real time governance.
The new technologies like cobots and IOT will be very helpful for the manufacturing and supply chains of the company.
Following are the legal factors in the Fila PESTLE Analysis:
As Fila is functioning in lots of areas it is essential to follow the rules and regulations of the various legal acts of the different nations. In some countries there is a rule to not to use the animal skin for the manufacturing of the sneakers where it has to use the synthetic fibre. It also follows various legal rules in construction of manufacturing plants and global supply chains. It also should not copy the product design of the other competitors and also should protect its designs. The labour rules in China and Vietnam are different from the European nations and USA.
In the Fila PESTLE Analysis, the environmental elements affecting its business are as below:
Fila company use lots of energy in manufacturing the various products. The company is using mostly non-renewable energy. But due to increase in the concern of the sustainability and climate change, the company has to practice the sustainable methods to manufacture the products. The company also using the recycled paper for the manufacturing the shoes.
It also uses synthetic fibre instead animal fur to manufacture the kid’s shoes. It also designed green sneakers. It is important for the company and the environment to practice the sustainable methods.
To conclude, the above Fila PESTLE Analysis highlights the various elements which impact its business performance. This understanding helps to evaluate the criticality of external business factors for any brand.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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