Walk In Closet Analysis

PESTLE Analysis on Walk-in Closet
Type E-Commerce business
Political
• Political Conflicts
• Government supporting E-Commerce
• Cyber Security
Walk in Closet operates under the influence of political factors. Political factors include political conflicts; government changes for example changes in the trading policies. Political Conflict in South Africa in recent times can be seen as a threat to a business like Walk-in closet because political conflicts can lead to decreased opportunities such as walk in closet expanding its reach to other parts of South Africa and therefore diversifying its business. Since E-commerce is a relatively new form of trading, the cyber security maybe a threat to the business. The threat would be that people would be less inclined to shop online. If the government increases their efforts in bettering cyber security it creates opportunities for walk in closet to grow and diversify its online store. This also creates a threat because businesses similar to walk in closet are able to join the market which would mean increased competition for walk in closet’s customers.

Economic
• Local economic situation
• Taxes
• Unemployment level

If the economic situation within a country is strong then the flow of goods would be easy then more people will buy clothing. This is because the supply of these retail items heavily depends on the economy of a country and improper supply negatively affects the business. Taxation of retail items is both a threat and opportunity to walk in closet because if the tax is high then the profit is low and if there’s a decrease in tax then walk in profit would gain more profit. Unemployment level in South Africa is an opportunity for walk in closet because it means that there’s is an availability of cheap labour which increases the opportunity to make higher