The influence of external and internal factors in launching a new product for Anothersole
Introduction
1.1 Aim of the Report
The study aims to determine the influence of different external and internal factors in launching a new product for Anothersole, a shoe company located in Singapore.
Company Background
The company was launched in 2017 by Phoebe Charn and Benny Chee, who have vast experience in the shoe business between them of more than two decades. In 2017 they decided to take a big leap of faith by creating a new shoe brand with social impact. Anothersole products are mostly made for women. These sold footwear essentials are crafted from 100% natural materials, thus reducing the company’s environmental impact and ensuring long-lasting wearability. Their main concepts are providing a shoe that provides comfort while also providing a timeless dress shoe look. Their shoes are also accredited to be light with an average weight of around 280 g for every shoe. Anothersole shoes are perfect companions that are lightweight.
However, it is not just the quality of shoes provided by Anothersole that set it apart from other shoe businesses. The business has an initiative called Buy1Feed1, where proceeds from every purchase are donated to different organizations trying to eliminate child hunger in Asia. The founders state that it made sense to have such programs since they have vast knowledge in the shoe business and thus wanted to utilize this knowledge for the greater good. Despite that the founders wanted the business to have some part in effecting social change, they did not want it to look like a manipulative ploy to manipulating people due to the charity programs. This is demonstrated by the high quality of products produced by the company.
Situational Analysis
Situational analysis is described as a combination of external and internal analysis with the objective of defining the strengths, weaknesses, opportunities, and possible threats that can affect a business’s capabilities and other different external factors that can affect a business in the present day and the future. These processes, when done regularly, help businesses become more effective and efficient to face the different challenges accompanying the business environment.
PESTEL analysis
Political.
In terms of the Singaporean political system, the country is stable and is characterized by a rule of law that is firm with a government that works aggressively with communities and businesses to attract more business investments in the market. The main strength of Singapore is its regulatory quality and institutional efficiency accompanied by almost no corruption. Singapore was ranked third from 180 countries in Transparency International’s Corruption Perceptions Index of 2019.
Singapore is a nation characterized by parliamentary democracy where the president is the head of state while the Prime Minister handles all business related to the government. It is considered to be one of the most stable countries in Southeast Asia. The country is a member of different organizations, including the World Bank, IMF, the Commonwealth, and the UN. One of the Singaporean government’s primary goals is attracting foreign investments, which are considered to be a key factor in promoting economic success for the country. The country has also maintained good relationships with the USA, China, and other powerful and highly developed nations in the world. However, relations with neighboring nations like Indonesia and Malaysia have sometimes been unstable, mostly because of border issues disputes.
Economic Aspects.
The next aspect of this PEST framework is the Singaporean economy. Singapore is estimated to be the 38th biggest economy in the world. The country is also one of the Asian dragons since it is a highly developed economy with a productive and highly educated workforce. The other Asian tigers include South Korea, Taiwan, Hong Kong, and Singapore. Singapore has witnessed remarkable growth for the past few years. The country’s GDP in 2019 was $369.6 billion with a GDP capital of $64829. In 2017, the unemployment rate was around 3.91%, and in 2018 was at 3.77%. However, this unemployment rate can be considered as being over employment, translating to mean that some employers may be forced to employing just anyone since there are not adequate workers in the market.
The corporate tax in the country is at a flat rate of 17%. Many analysts consider Singapore a tax haven because of the low taxes and other projects meant to attract foreign investors. Singapore is also considered to be the 14th biggest exporter in the world, and its top exports include computers, integrated circuits, refined petroleum, diamonds, gold and many other commodities that are mostly shipped to China, USA. Hongkong and Indonesia.
Socio-cultural factors
Singapore is considered to be one of the richest countries in the world. It is largely multiethnic, with an estimated total population of around 5 million people in 2018. In men, life expectancy is 79 years and 84 years in women. Singaporeans are considered somewhat conservative due to the influence of dominant faiths like Buddhists, Taoism, Hinduism, Islam, and Christianity. Although the country has made recommendable progress in the past few years, some social challenges are still facing them. One of them is that the country is densely populated with serious space constraints. A growing number of an aging population is accompanied by a cost of living that is constantly on the rise and frequent tensions between different ethnic groups.
Technological factors
In terms of being technologically advanced, Singapore is one of the leading nations in this aspect. It is also thought to be one of the most innovative countries in Asia. It has one of the best infrastructures accompanied by having one of the fastest internet connections in the world and is often referred to as the technological capital of Asia. These facts are why big tech giants like IBM and Amazon have used Singapore to pilot new projects before they are commercialized globally. Also, 80% of the top businesses in the world have some presence in Singapore. Job opportunities in the IT sector have recently outdone other sectors of the Singaporean economy. However, there are still challenges in talent shortages in science, technology, mathematics, and engineering sectors. According to Manpower Group, in 2019, around 56% of employees found it difficult to recruit IT and engineering staff.