1 ENVIRONMENTAL ANALYSIS

1.1 EXTERNAL ENVIRONMENTAL ANALYSIS

By the careful external environmental analysis w find out the following factors important
to consider in order flourishing in the industry

Analsysis of enivroenmrnt

1.1.1 POLITICAL
Pakistan is very instable political country. We are having laws but no enforcement at all. This
thing is devastating for any industry. Elections run through almost every year although for none
but for many reasons. Every government brings new rules and policies. Even different political
parties are against fashion industry like MMA. Taxes, FEDs and other import duties are being
imposed making hard to survive. Despite of all these fashion industry is flourishing and
renowned in the world.

1.1.2 ECONOMIC
Inflation rate in Pakistan is rising every year. In 08-09 it was 22.3% that was 10.3% in 07-08.
This is very point of tension. Interest rates are other freaky thing. And the recent world recession
though had less impact on Pakistani economy yet has its importance. These things are like
hurdles in fashion or in any industry. The price wars are also of great important. Countries with
high technologies are striving with low prices dragging developing countries towards down.

1.1.3 SOCIAL
Pakistan is the 6th largest populated country of the world. Due to the increased literacy rate and
advanced media people are aware of new trends and fashions. Due to the entrance of foreign
market tastes of people so as living styles are being changed. People are becoming more fashion
conscious and careful in their selection. Advanced telecommunications has improved sociability
of the people. At the same time religion is on the move. These all things has a great impact on
fashion industry as people are more aware of their needs so as to satisfying them.

1.1.4 TECHNOLOGICAL
Though fashion industry is not technology driven but in ever dynamic and global market it’s now
being essential to prosper in the technology area. Now a day without technology success seems
far. It’s a great tool of competitive advantage and a source if brand equity as well. The concept if
e-business is having great impact on fashion industry. Enhanced Internet, mobile and media
activities are gaining much importance in the fashion world.
1.1.5 LEGAL
Certain legal acts can’t be left as unimportant. Different business laws should be kept in mind to
abstain any problem in the future. Though there is no enforcement of laws in Pakistan but laws
are of great importance. In the recent government many new laws are made. Different trade
policies with the neighboring countries are signed. These all things according to us should be
considered in the business.

1.1.6 ENVIRONMENTAL
Weather has a great influence on fashion or apparel industry. But weather in Pakistan is not
changed unexpectedly. But the electricity crisis are of great important so as devastating.