Mango PESTLE Analysis

Published in Companies category by MBA Skool Team

Mango PESTLE (or PESTEL) Analysis assesses the brand on its business tactics across various parameters. PESTLE Analysis of Mango examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. Let us start the Mango PESTLE Analysis:

Political Factors:

The political factors in the Mango PESTLE Analysis can be explained as follows:

Today, there are endless options to choose from when it comes to clothing or fashion accessories. This is why it is necessary for a clothing brand to be at their toes and catch the consumers’ eye all the time and this is what could make the company successful. Mango is a world-renowned brand in the clothing and fashion industry operating in over 150 countries with more than 2700 stores. Mango is placed as one of the top notch brands in the industry and to maintain the same a healthy collaboration with local national and international communities in which it operates is of fundamental importance.

A favourable political condition is therefore important for a company to operate smoothly and efficiently in any location. Apart from political stability there might be another factors like change in the ruling party, changing government regulations, previous political chaos etc. of a country that might affect the political environment of the company.

Image: company website

Economic Factors:

Below are the economic factors in the PESTLE Analysis of Mango:

The economic growth and development of a country determine how its citizens are willing to spend their money. In a growing economy a greater number of citizens would be willing to spend on expensive clothing and hence product must be produced after a thorough analysis of the entire economic factors that affect the industry.

Some of the other factors that could affect the economic environment for the company are employment rates, interest rates, tax rates, inflation and GDP of a country. Mango company should device such plans and undertake such strategies that helped to survive even in adverse conditions and remain unaffected by conditions like recession. This would also include adapting to the needs of the consumer in the best possible manner. Other economic factors like exchange rates and trade restrictions could also have a great impact on the sales and thereby the profitability and growth of the company.

Social Factors:

Following are the social factors impacting Mango PESTLE Analysis:

One of the most important factor that keeps Mango as a major competitor in the industry is that it keeps up with the rapidly changing trends in the fashion industry and offers good quality products at reasonable prices. Clothes are now being viewed as a perishable commodity unlike few years ago. This is because people are always looking for fresh clothing choices and the company should be able to offer fresh clothing ranges in shorter product life cycles. And a major analysis on social macroeconomic factors plays a major role here as the types of products desired in one location may be quite different from another. The artistic and design oriented culture and heritage of a country in which the company supplying also plays a major role in determining the type of clothes people would like. A peaceful social environment with vibrant cultural events and the level of tourism in a country could also be some of the social macroeconomic factors that could affect the demand of the company’s products.

Technological Factors:

The technological factors in the PESTLE Analysis of Mango are mentioned below:

Adapting to environment friendly technological approaches in its sales and manufacturing processes is a very important factor that every company in the fashion industry must consider. Apart from the best creativity by its designers what also plays a major role is the mix of automation and craftsmanship as Mango does not provide single piece outfits but produce them in various sizes and there are multiple products of the same type produced which are delivered to various countries. The system of logistics that the company uses must be well designed and suit the requirements of the company. Measures to should be taken such that the billing times can be reduced , delivery time can be reduced , alteration time can be reduced. These could also be done with the help of latest technologies.

Such measures increase the efficiency of the company.

Following are the legal factors in the Mango PESTLE Analysis:

Every government has a set of rules and regulations that support the industrial development of their country and hence measures should be taken which are not only beneficial for the company but also for the citizens of the country. There are also laws in place which are to be abided by in order to stay away from any legal charges or lawsuits. Employment laws insure good conditions of the employees. If there are any unfair practices taken against the laws whether it is related to wages or related to the working environment conditions employees can question the management based on these laws. The consumer laws are in place so that the company cannot cheat its customers by selling bad quality products. antitrust laws are also in place to ensure that the business runs smoothly and fairly. Ensuring abiding by the law helps the company to operate efficiently without any extra expenditures and time spend on legal proceedings.

Environmental Factors:

In the Mango PESTLE Analysis, the environmental elements affecting its business are as below:

Mango should find new ways to adopt more eco-friendly business processes search that it does not harm the environment while operating. This could be done by making the stores eco-friendly by using reusable paper bags which are easy to decompose, emailing the bills instead of printing them and many more initiatives could be taken on the similar lines. Focusing and investing insert renewable technologies is a fundamental importance as it would help the company to sustain in future by achieving a competitive advantage. The environmental factors that could affect the demand for certain products could be climate change or change in weather conditions.

This is because the type of clothes people prefer to wear might alter website changes. There are certain environmental standards and regulations also in place which must be followed to ensure efficient working of the company. The standards are set for the industry based on its requirement and hence must be abided by.

To conclude, the above Mango 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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