The General Macro Environment And Industry Attractiveness

1101 WordsDec 10, 20165 Pages
An external analysis looks at the general macro environment and industry attractiveness. A PESTEL analysis will be used to look at the macro environment and Porter’s Five Forces framework will follow to provide a clearer picture of industry attractiveness. PESTEL Kohl’s needs to consider political factors affecting the retail market, which usually pertain to governmental policy. The following represent current political external factors that are present in the macro retail environment in which Kohl’s competes: 1. A potentially high instability of politics (potential threat) 2. Past political support for globalization with the Obama administration, uncertainty abounds with an incoming Trump administration (potential threat or opportunity) 3. Political pressure for increased minimum wage (threat) 4. Governmental support for e-commerce (opportunity) 5. Increasing governmental support for cyber-security (opportunity) Kohl’s has benefited from political stability, which is a condition that allows firms to expand or diversify, but with an incoming change in the presidential administration, Kohl’s needs to be prepared to adjust to changes. Challenges or opportunities may come from changes in tax policies or trade agreements. Government support for e-commerce has also been an opportunity and since Kohl’s competes with a web presence alongside their brick-and-mortar stores, there are certainly opportunities for Kohl’s to exploit. Globalization is an opportunity and a challenge for
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