Business Management – STEEPLE Question

Q. Prepare a STEEPLE analysis for a foreign fashion retailer

planning to setup a chain of shops for the first time in your country.
When considering a foreign fashion retailer (Name is not specified) coming to a
country like India, it is important to consider STEEPLE; Social, Technical,
Economical, Environmental, Political, Legal and Ethical factors of this country. If a
firm does not adapt to these changes then things can get problematic.
Firstly, the foreign fashion retailer will have to consider the social factors of India i.e.
adapting to the traditions and the cultural lifestyle. This means that the clothes they
sell should be a little “Indian” and not follow any other culture. These all conditions
are assuming that the foreign fashion retailer mainly sells formal clothes. When
connecting to the culture, the colours of the formal fashion should suit it. Examples
include having a beige shirt with a black tuxedo (Note: the beige tuxedo is the key
here).
When coming to the technical side of things, the foreign fashion retailer will have to
keep up with one of their main competition – eCommerce platforms as they will allow
other retailers to participate in the market. They will even have to keep up with the
advancements in the technologies such as the advancements in transportations and
material handling which could provide faster time to market opportunities.
Additionally, the economy will have a great effect on the foreign fashion retailer as
the prices of the clothes will have to suit the economy of India which is fundamentally
having a lesser price than countries like the US and the continent of Europe due to
the income per capita. The foreign fashion retailer will also have to take care of the
competition as other Indian retailers which sell formal clothes may have a very good
reputation (Example is Raymond) in this industry which may be problematic.
The foreign fashion retailer will have to take care of the companies they are buying
from as they will have to take care that they are taking care of the environment as a
lot of water goes through to make a single piece of cloth. This will also connect to the
legal factors because if the company may be damaging the environment then they
may also be breaking the law (this is about the other companies they are buying
from).
Diverging to the political factors of the country then the foreign fashion retailer will
have to see the opportunities in the cities of India and the demographic factors that
influence the sales with the political factors and the laws that may be made for or
against them. Moreover, they will have to look at the developments taking place in
the country due to the governments which may benefit the retailer as the owners will
have to focus on the zoning laws in the states as the firm is planning to setup a
‘chain’ of shops.
The firm should especially consider the taxation laws when moving to another
country like India because any illegal act may heavily damage their reputation which
may ultimately decrease their sales at the start. Other laws of employment and
higher pay can also have a high influence when this retailer is entering a country like
India such as laws on higher pay will become a threat to them
The foreign fashion retailer will even have to take care of the ethical factors as the
clothes they sell should suit the social status of the community. More importantly, the
company should take care that their activities are totally ethical such as giving back
to the environment. If the ethical factors are not taken care of then the firm will be a
major target of pressure groups. This may shake up things in the firm in a bad way
making the situation problematic.
Altogether, this foreign fashion retailer who is planning to setup this chain of shops
should take special care of these factors – STEEPLE to be at the top of their game
and be ahead of their competition from the start i.e. from the planning to get their
optimum level of sales.