Prada Pestle Analysis Paper

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(A) “The essence of strategy is choosing what not to do” – Michael E.Porter At a fundamental level, all strategies for Porter boil down to two very broad options, do what everyone else is doing, but spend less money doing it, or do something no one else can do (Harvard Business Review, 2016). The starting point for a business strategy is identifying the relevant business unit (, 2016). This must include a complete analysis of the internal and external environment, irrespective of the economic climate. An analysis of the external environment may involve PESTEL and/or Porters 5 forces. PESTEL analysis is a tool used to analyze and monitor the macro environment; it stands for Political, Economic, Social, Technological, Environmental and Legal (Academy, 2016). Environmental scanning in the form of SWOT or PESTEL can help…show more content…
As a result customers pay a premium price, as they believe the unique qualities of the Prada products to be worth the difference between the competing products, for example the purchasing a Prada handbag to the purchase of a Chanel handbag. The merchandise is also distinctive as Prada have always considered fashion, luxury and style a covering project beyond the constant production of clothing, shoes and handbags (, 2016). The luxorious products of Prada give the customer satifaction of not only owning expensive items but also some extra added intagible benefits, which create pschological value (, 2016). It is a set of powerful assests, which are connected to Prada and contribute to the tangible and intagilble value of the product not only in terms of a high profit but also customer perception (, 2016). Brand recognitions within the market cause stronger position and differentiation against competing brands (,

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