PESTLE Analysis Country\'s Profile Political Perspective Environmental
Billabong is a leading name in the apparel industry of Australia. The company specializes in casual wear, wet suits and accessories. This report is intended to analyze the feasibility of setting up a manufacturing facility in Karachi, Pakistan. It is also intended that this manufacturing plant will be used as a regional office and will be used to introduce the products of Billabong in the Asian market.
During this feasibility study, the methodology used was PESTLE analysis. This method enabled the management to analyze this business proposal from political, economic, social, technological, legal and environmental point of view. While analyzing Pakistani market as a future prospective, it was established that this business venture can be subjected to higher risks by political, social, and environmental forces. On the other hand, the legal structure of Pakistan offers medium risk to the business operations of Billabong. Whereas, technological and economic factors can cause no or less harm to this business venture. As a matter of fact, they both actually support the establishment a manufacturing facility in Karachi, Pakistan.
After thorough analysis, it is concluded that instead of setting up a manufacturing facility, it is better to outsource Billabong's manufacturing to a local firm and sales operations should be conducted from the Head Office, Australia.