For e- commerce transactions, Ayek Apparel uses the Amazon and eBay marketplaces.. PESTLE Political, economic, sociocultural, technological, environmental, and legal considerations all i
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UNIVERSITY OF i FOREIGN TRADE UNIVERSITY
SCHOOL Ag 0 HO CHI MINH CITY CAMPUS
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END-MODULE ASSIGNMENT
Module: PREPARATION FOR THE DISSERTATION
Code: BSS058-3
ASSIGNMENT?’S TITLE
Student: LE TRONG NHAN
Student ID: 2145519125
Cohort: K59BF-B
Semester: I Grade (in words):
FOR EXAMINERS ONLY
Grade (in number):
Academic year: 2023-2024 ¬— neces
Headteacher: NGUYEN THI HOANG ANH Examiner 1
(Signature & Fullname) Examiner 2
| (Signature & Fullname)
a
Submission date: 8 December 2023
Student’s signature:
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UNIVERSITY OF uw FOREIGN TRADE UNIVERSITY
_ÔÑ A LIMESS HO CHI MINH CITY CAMPUS
END-MODULE ASSIGNMENT
Code: BSS058-3
PREPARATION FOR THE
DISSERTATION
Student’s full name: LE TRONG NHAN
Student ID: 2145519125 Cohort: K59BFB Semester: I Academic year: 2023-2024
Lecturer: NGUYEN THI HOANG ANH
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Ho Chi Minh City, January 2022
STATEMENT OF AUTHORSHIP
Except where reference is made in the text of the end-module assignment, this assignment contains no material published elsewhere or extracted in whole or in part from an assignment which I have submitted or qualified for or been awarded another degree or diploma
No other person’s work has been used without due acknowledgements in the end-module assignment
This end-module assignment has not been submitted for the evaluation of any other modules or the award of any degree or diploma in other tertiary institutions
Ho Chi Minh City, January 2022
Je
Lê Trọng Nhân
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TABLE OF CONTENTS
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CHAPTER VI PROJECT PLAN RECOMMENDATIONS
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CHAPTER I INTRODUCTION
CHAPTER II COMPANY OVERVIEW
Since its inception in 2015, Ayek Apparel Ltd has grown significantly Recent
improvements to the Amazon platform, however, have prompted questions about the
company's reliance on third-party stores The purpose of this paper is to present a
thorough analysis of the existing situation, followed by strategic recommendations to
resolve these concerns Ayek Apparel Ltd specializes in tailoring apparel for ladies,
with an emphasis on Western-Asian fusion styles With a strong social media presence and a dedicated customer base, the company has attained yearly profits of around
£200K in 2021, largely in the London and South-East of England region For e-
commerce transactions, Ayek Apparel uses the Amazon and eBay marketplaces
Recent changes to the Amazon platform have raised worries about the potential effects
on cash flow and the general viability of the current business model
CHAPTER II PESTLE
Political, economic, sociocultural, technological, environmental, and legal
considerations all influence the UK apparel sector A thorough understanding of these
aspects is required for industry participants to make educated strategic decisions and
effectively navigate problems This PESTLE analysis serves as a foundation for
assessing the external forces affecting the UK clothing sector
1 Political
1.1 Trade regulations:
Trade agreements and regulations have an impact on the UK apparel business,
particularly in the wake of Brexit The price of raw materials and completed goods
might fluctuate in response to changes in trade laws and tariffs
1.2 Labor laws:
Laws governing employment, such as those pertaining to minimum wages and
working conditions, can have an impact on production costs and the industry's ability
to compete
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2 Economic
Consumer expenditure on apparel is directly impacted by the state of the
economy Budget-friendly solutions may be chosen by consumers during economic
downturns, which could impact sales of premium products Currency exchange rate
fluctuations can have an effect on the price of imported materials and the
competitiveness of apparel manufacturers in the UK
3 Social
The fashion industry is heavily reliant on the social milieu To be current and
appealing, Ayek Apparel, which specializes in Western-Asian fusion clothes, needs to
have a thorough awareness of changing societal trends, tastes, and cultural subtleties
4 Technological
Quick technical progress affects consumer behavior, logistics, and e-commerce
platforms Ayek Apparel ought to adopt cutting-edge technologies in order to improve
its web visibility, optimize company processes, and provide a flawless clientele
experience
5 Legal
Growing environmental consciousness affects the decisions made by consumers
In order to adapt to shifting consumer preferences and legal developments, Ayek
Apparel may take into account eco-friendly and sustainable sourcing and operational
methods
6 Environmental
Ayek Apparel's business activities may be influenced by legal issues such as
intellectual property laws, consumer protection legislation, and data privacy laws
Compliance with these rules 1s critical for avoiding legal complications and
maintaining customer trust
CHAPTER IV SWOT ANALYSIS
1 Strengths
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The established brand, devoted client base, and steady profitability are Ayek
Apparel's strengths A strong social media presence is an effective marketing technique for increasing brand recognition
2 Weakenesses
However, limitations such as the company's reliance on Amazon and eBay,
limited regional reach, and vulnerability to platform policy changes pose serious
concerns to its long-term viability
3 Opportunities
Diversifying sales channels, boosting product options, and reaching new markets are
all possibilities for Ayek Apparel The corporation may use its capabilities to forge
new paths and lessen its dependency on specific platforms
4 Threats
Platform policy changes affecting capital flow, fierce competition in the fashion sector, and economic downturns influencing consumer buying are all threats A
comprehensive risk management approach is required
CHAPTER V PORTER’S FIVE FORCES
1 Bargaining power of supplier
While Ayek Apparel has moderate bargaining power due to a devoted customer base, researching alternative platforms may boost customer bargaming power
2 Bargaining power of buyers
Because of the reliance on suppliers for supplies, there is some bargaining
power Maintaining solid supplier connections and investigating alternative suppliers
can assist in mitigating this risk
3 Threat of new entrants’
Because of the low entry barriers in the online fashion sector, Ayek Apparel
must strengthen its position through continual mnovation and brand growth
4 Threat of subtitutes
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To combat the mild threat of alternatives, Ayek Apparel must concentrate on
distinction, stressing the uniqueness of its customized offers
5 Competive rivalry
Given the high level of competition in the fashion sector, Ayek Apparel must
stand out through innovation, quality, and smart marketing techniques
CHAPTER VI PROJECT PLAN RECOMMENDATIONS
Ayek Apparel should actively seek collaborations with other e-commerce
platforms, such as Etsy, Shopify, and niche fashion platforms Creating a dedicated e-
commerce website will also provide you more control over transactions, decreasing
your sensitivity to changes in third-party systems
Ayek Apparel should strategically explore new markets outside of London and
the South-East to offset the risk associated with a concentrated consumer base Using
social media for customized marketing initiatives can raise awareness and increase
sales in various places
Introducing new product lines or variations will increase the number of
customers Ayek Apparel can find possible product offerings based on customer input
and market trends, assuring relevance and appeal to a wide range of consumer
preferences
Improving customer loyalty programs is critical for keeping and rewarding
current customers Active participation on social media platforms enables Ayek
Apparel to establish a community, respond to problems quickly, and receive vital
feedback for continual growth
Ayek Apparel must remain diligent in monitoring legislative changes in order to address the dynamic landscape of e-commerce platforms Diversifying corporate
processes is critical for reducing dependency on a single platform Seeking legal
counsel can help to explain contractual duties as well as identify potential hazards
associated with each platform
Ayek Apparel should investigate eco-friendly materials and production
procedures, given the growing importance of environmental sustainability and ethical
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standards in the fashion business Customer communication about these activities can
improve brand image and attract environmentally conscientious customers
It is vital to monitor and adjust to changes in the political and legal landscapes
Ayek Apparel should form a legal advisory team to help them negotiate complex
legislation, ensure compliance, and reduce legal risks associated with their activities
A staged approach to implementing ideas 1s critical to Ayek Apparel's success
Planning should include allocating resources for website development, focused
marketing, and geographic expansion Regular monitoring and assessment will aid in
the adjustment of plans in response to changing market conditions
CHAPTER VII CONCLUSION
Ayek Apparel Ltd has issues as a result of its dependency on Amazon and
eBay Strategic diversification, global development, and product innovation, on the
other hand, can offset these risks while retaining and growing the company's consumer base Ayek Apparel's success will be determined by its ability to implement initiatives
in a flexible manner while also adjusting to changes in the industry and consumer
behavior In the volatile e-commerce landscape, regular review and adjustment of the
business model will ensure long-term growth and durability
Finally, Ayek Apparel's strategic decisions should take into account not only
internal elements and industry dynamics, but also the larger external environment as
defined by the PESTEL framework Managing the company's resilience and long-term success by navigating political, economic, sociocultural, technological, environmental, and legal variables
Ayek Apparel may proactively respond to external adjustments by incorporating the PESTEL framework, ensuring its strategies correspond with the ever-changing
global business landscape This comprehensive approach will equip Ayek Apparel to
thrive in the face of uncertainty and contribute to the company's long-term growth and competitiveness
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