PESTLE ANALYSIS
PESTLE analysis stands for Political, Economic, Social, Technological, Legal and Environmental these are all factors that can affect a business’s outcome and what the business achieves. PESTLE is how they monitor the Macro-factors that have an impact on their organisation. These are influences which the business has no control over. Micro environment factors, are factors s that have a direct impact on a business' success this means the customer, the suppliers, shareholders, industry market and competitors.
The Brexit has negatively impacted many businesses; this is because the pound has now dropped. This means that clothing prices have risen as prices of shipping has become more expensive, the fact that prices have risen affects the brand negatively as it may result in the loss of customers. Every retail store needs a certain amount of staff to keep business flowing effectively, however all of those factors could mean the store cannot keep on as many members of staff due to loss of money and less profit being made. If there is less members of staff, this could mean that customer service standards are not met.
Competitive retailers definitely affect a business financial outcome, if there are stores with similar stock it means their sales may end up being limited as they share the same customers. Lipsy London’s competitive stores are brands such as prettylittlething.com, Missguided, Ted Baker etc. However; I do think Lipsy London’s dresses are considerably more expensive than prettylittlething.com.
Social Media accounts are ran for Lipsy which is a good way of online marketing and advertising the brand. When doing some research I found that female internet users are
more likely to use Instagram than men, that is why for my collaboration my main platform for online marketing will be on Instagram. As well as using Instagram, Lipsy London also advertises using Twitter and Facebook. Another technological factor for Lipsy is that they record customers emails and regularly send out emails so that customers can keep up with the latest trends and deals. However, some customers may find that the constant emails block up their inbox and might get frustrated with the emails as many people use their emails for work purposes.