Vans Pestel Analysis

Pestel Analysis is a business tool used to point out the opportunities and threats of the external
environment of a business. This tool helps a business plan out big decisions and help predict their
outcomes and effects. Pestel is the abbreviation of the words political, economic, social, technological,
environmental, and legal, these are all factors analyzed in a Pestel analysis.

Vans is a company founded in 1966 by Paul Van Doren and his brother Jim Van Doren, this company sells
thick sole skateboarding shoes as well as sponsors surfing snowboarding BMX and motocross teams.
Vans began in Anaheim California USA, it had the name “The Van Dorren Rubber company” and later
changed its name to “Vans” and later added off the wall which was a slang used by skateboarders.

Political

Political Stability: A stable and pleasant business climate with predictable market growth trends is
provided by high political stability. However, at the point of political chaos, it deters the investors and
harms the stakeholders' trust in economic and consequent organizational performance. Currently, Vans
Off the wall is present in different countries, each having own political tensions. Growing tensions and
instabilities in the global political environment can affect the gold industry growth and limit the growth
opportunities available to Vans Skating on Air.

Protests/ pressure groups: since protests by pressure organizations, social/environmental activists, and
labor unions play such an essential part in the policy making process, Vans Skating on Air should
carefully evaluate them. Vans Skating on Air’s ability to work with the community and achieve long-term
company goals may be enhanced by close partnership with such groups. Moreover, a well-developed
governance system with a democratic political environment makes the business environment more
comfortable for international business organizations like Vans Skating on Air.

Taxation, trade restrictions and intellectual property protection: Entering nations with high tax rates will
have a direct impact on Vans Skating on Air's profitability. Taxation has a negative impact on
international trade and hinders exports. Vans Skating on Air. can enter markets with low taxation and
benefit from significant profits that can be invested in research and development. The organization may
also conduct research into industry-specific taxation rules to have a better understanding of the host
government's aims and interests in promoting industries. High trade barriers can complicate the
business climate by affecting exports and jeopardizing ties with overseas trading partners. Furthermore,
if the government of the country under consideration is not serious about protecting business
organizations' intellectual property rights, it would discourage entrepreneurs from investing in
businesses because of the significant danger of ideas being stolen. As a result, Vans Skating on Air.
should investigate how intellectual property rights are safeguarded in the host country and adjust its
business plans accordingly.

Economic

Business cycle stage: Organizational performance is directly influenced by a country's economic

progress. Vans Skating on Air can benefit from growing economies in a variety of ways. It's also crucial to
comprehend the stage of the industry lifecycle. Due to market saturation, entering mature sectors might
be more difficult than entering businesses in the growth stage. Furthermore, the amount of money
committed on essential infrastructure development by the host country government has an impact on
Vans Skating on Air's commercial performance. A well-developed infrastructure improves the business
environment and the gold industry's growth potential in the specific country.

Employment/ inflation/ exchange rate/ interest: The ability of Vans Skating on Air. to pursue its long-
term growth objectives will be determined by the GDP growth rate. Consumers' ability to spend more
on supplied products is also indicated by a high GDP. High unemployment indicates that there is a
surplus of labor available at cheaper wages. Vans Skating on Air can cut its production costs by operating
in such a market. The organization should also carefully consider the interest rate and its influence on
borrowing ability and attitude towards investment. The high interest rate will encourage the attitude
towards investment and increase growth opportunities for Vans Skating on Air. Finally, the exchange
rate fluctuation can also influence the profitability and international trade. The high fluctuation on local
currency can be a cause of serious concern for Vans Skating

Social

Gender roles: Vans Skating on Air. must research previously ascribed gender roles in order to harmonize
its marketing and communication tactics. Traditional patriarchal civilizations with firmly defined gender
roles will have different marketing and human resource tactics than societies with little gender norms.

Class distributions and societal norms: International marketing managers consider culture to be a
significant factor. Each society has its own set of norms and values that have a significant impact on
consumer behavior. Vans Skating on Air. should build local teams and alliances to better understand
social attitudes and norms so that marketing campaigns may be tailored to the specific cultural setting.
Vans Skating on Air also pays close attention to social class division. Vans Skating on Air. will need to use
niche marketing tactics to offer luxury products at premium costs to a market where the high-end
market is rather tiny. Similarly, where social class stratification is modest, market segmentation based
on social class may be unproductive.

Online shopping: Customers have been encouraged to shop online because of the emergence of social
media and e-commerce. Vans Skating on Air. must comprehend online shopping behavior while
considering demographic disparities, as younger customers are more likely to shop online than older
customers. When establishing marketing and communication strategies, keep in mind the expanding use
of mobile phones and social networking sites.

Technological

Social media marketing: The advancement of information and communication technologies has resulted
in the adoption of novel marketing methods to improve consumer collaboration. In today's business
world, using social media has become commonplace. Vans Skating on Air. can take advantage of social
media marketing's benefits to boost business success. Technological advancements can be exploited to
kick off innovative social media campaigns aimed at building online brand communities.

Shortened product life cycles: The use of new technology has shortened the time it takes to develop a
new product. New products are developed faster these days, and supply chain partners have gained
greater clout. It puts pressure on Vans Skating on Air to produce new goods fast, diversify the product
line, integrate flexibility into the value chain, and cultivate positive business connections with value
chain partners.
Environmental

Recycling and waste management: Business enterprises have been driven to embrace creative recycling
and waste management techniques because of rising environmental degradation and technological
innovation. Recycling has practically become a corporate standard in several countries. Furthermore, for
Vans Skating on Air, adopting efficient waste management techniques in organizational units located in
or near urban areas is critical. Many countries have enacted severe waste management regulations in
order to safeguard their urban regions.

Weather and climate: Weather and climatic conditions can have an impact on company efficiency.
Extreme weather conditions, for example, might raise operating costs and force Vans Skating on Air to
make the value chain more flexible. Consumer buying patterns may be affected as a result of these
developments, prompting the company to alter its product and marketing tactics.

Legal

Consumer protection laws: Because of consumer worries about privacy and security, data protection
has become a major issue. To protect consumer data, Vans Skating on Air must understand data
protection standards. There are also laws in place to set a maximum price, enforce a specific level of
quality, and protect consumers from deceptive marketing promises. To maintain compliance with
consumer protection regulations, Vans Skating on Air. must examine these considerations.

Intellectual property laws: Intellectual property laws are in place to safeguard businesses' patents and
valuable ideas. Inability to defend intellectual property rights might result in a loss of competitive
advantage, putting Vans Skating on Air at a disadvantage in comparison to other market participants.

Overall, Vans should focus on all the external factors stated above that either positively or negatively
effect the business before taking any major decision, in my personal opinion vans should focus on
improving their social factors because most of their customer profiles consist of young people that use a
lot of social media and communication methods that vans could reach out to.