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Macro Environment Analysis

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Macro Environment analysis

In order to better perceive the situation which GAP is facing, we could analyze the market environment from political and legal, economic, socio-cultural, technological and competitive aspects. Those factors included the controllable and uncontrollable variables which could influence the whole market and the target consumers.

Political & Legal

Australia government help established trade policies to protect local clothing industries from imported good through high tariffs, quotas, and subsidies. According to Jayanthakumaran (2001), the World Trade Organization (WTO) and the Asia Pacific Economic Cooperation (APEC) have planned to remove the protection on Textiles, Clothing and Footwear (TCF) industries in …show more content…

Ever since 2008 global financial crisis, the whole world has been facing endless economic problems. People began to lose their purchasing power because of the rising inflation and high unemployment rate. Most of the people thought the economics of Australia would be catastrophic like the United States and other major European countries. However, some studies pointed out it did not happen. The reverse consequences have occurred, as the table showed the comparison with the other European countries, Australia’s economic status has been improved (Brain, 2010). Brain 's study also mentioned Australian economy could face a stand-alone crisis within the next 5 years, like foreign debt default. The TCF industries in Australia could bring more opportunities for the investors even after the financial crisis.

Socio-cultural

The society values, preferences and behaviors are based on the cultural environment. The particular social environment shaped perceptions and basic values as they grow up. As an immigration country, Australia, like the United States, showed the diversified cultural values and social perception. In 1947, in order to increase the population and build the country’s economic strength, Australia stared an immigration program (Morrissey, 1996). In the early stage, most immigrations were from central Europe and lately, it spread to other areas around the world. Australia has over 200

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