With a GDP of over $16.760 trillion, the US is the largest economy in the world (Makos, J. 2014)1.From political to environmental there is a multitude of factors which impact on this immense economy every single day. Combined with being the 3rd most populous country in the world and therefore having an incredibly vast workforce, the US economy grew at 2.42% in 2014 (Marketline, 2015)2. A)PESTEL analysis of US market for Pennys. POLITICAL Political factors in a PEST analysis are primarily factors which are controlled or influenced by the government and how these factors influence Pennys and the garment industry is what I will examine. One of the most serious challenges facing Pennys’ penetration of the US market is their channels of distribution. One of the factors which made Pennys so successful in Europe was their cheap and accessible labour and materials from Asia. In the US market this is not a viable option if they wish to retain their low cost reputation. In the case study titled “Thanks…Pennys” it is stated that “the company are hoping to develop relationships with suppliers in Guatemala and Mexico”. What makes the US market attractive for Pennys …show more content…
How quickly and how competently a business adapts to these technological revolutions determine if they will continue to be successful as an organisation and not be left behind the rest of the business environment. Social media, especially Facebook, can only make the US market more attractive for Primark. Primark is a business which has just recently established itself not only in a new country, but a new continent. Naturally their brand image and awareness is not going to be immediate. However through social media they can achieve the “Primark image”. A massive amount of their target market accesses some form of social media regularly which results in easy access to consumers for