In this presentation, we will learn about:

What is SWOT Who does the SWOT analysis Why is SWOT necessary On what factors does the SWOT depends SWOT analysis of the Italian Republic with respect to the consumers.

SWOT Analysis
It is important to base Strategic plans on robust intelligence. This could include using information from performance measurement, research, learning and benchmarking. The SWOT framework provides for an analysis of the internal and external environment and can be used in conjunction with a scan of the external environment (such as PESTLE), in order to evaluate the information gathered. SWOT refers to S Strengths, W Weaknesses, O Opportunities and T Threats

Who does the SWOT analysis

SWOT analysis is done by business organisations or firms Researchers Analysts Economists Market strategists

Why is the SWOT analysis done

To know about the market To gain knowledge about the changing market conditions To know where the firm stands in the present market scenario Scope for improvements and the challenges coming in the near future. To capitalize on the transitions created in the market

General SWOT Flowchart

Strengths Capital strength Reputation/image Brand image Knowledge Location Experience Resources Competence, capabilities Quality, Opportunities Weaknesses Disadvantages Gap in experience, knowledge Financial aspects Reliability and trust Loss of key staff Geographical factors

Threats

Grants/Funding New Market Unfulfilled Customer needs New Technology Economic upturn

Competitor activity

O T

Economic downturn Increasing regulation Declining markets Market saturation

SWOT and the PESTEL

S.W.O.T. Analysis of the Republic

Italian

(Repubblica Italiana)

1. Multi Party coalition has led to more stability. 2. Has been a central force in European integration. 3. Founding member of the European Union. It also is a member of NATO and the G-8. 4. The top corporate tax rate has been reduced to 27.5 % from 33 % 5. The overall freedom to conduct a business is relatively well protected under Italy's regulatory environment.

1. Total government expenditures, including consumption and transfer payments, are very high. 2. government spending equaled 50.1 percent of GDP. 3. high income tax and a moderate corporate tax. The top income tax rate is 43 percent. 4. Problems of corruption, infiltration of political institutions by organized crime have been dominant.

POLITICAL

1. More than 20 political parties. 2. Positive dependency on sophisticated arrangement of coalitions. 3. Average of about one new government per year. 4. Awareness against fascism.

1. Right-wing populism 2. Active MAFIAS. 3. Racism 4. Reservation system 5. Illegal immigration.

ECONOMIC FACTORS
1. 5th largest industrial economy of the world. 2. An important member of G-8, EU, and OECD. 3. A tourist attraction 4. One of the Fashion Hubs of the world. 5. Processing and manufacturing of goods. 6. Leading exporter in apparel trade. 1. Very few or limited natural resources. 2. Land unsuited for farming and hence imports are huge. 3. Budget deficits and high public debts. 4. GDP is expected to contract further due to the global economic crisis. 5. Expensive labour.

1. Worlds 4th largest Gold reserve. 2. Better relations with India, U.S. and China. 3. Tourism 4. Imports of energy for processing and manufacturing. 5. Investment in global fashion apparel industry.

1. Uncertainty in the retail sector 2. Economic division between the northern and southern Italy. 3. Highly unpredictable market conditions. 4. Low production rate of apparels. 5. Increasing Debts.

STRENGTHS
One kind of culture prevalent throughout . Catholism hold the whole region together. High end Fashion. Fashion and luxury as status symbol.

WEAKNESSES
Rapidly changing fashion.

Uncertainty in the consumers mind.

High Crime zone

OPPORTUNITIES
Influence of the subcultures. Cuisines and Wines. Emerging Music Genres

THREATS
Immigration leading to difference in styles.

Security and potential threats from terrorists and gangs.

 Modern, Advanced, developed, fast and automated country. 4th greatest internet host, 10th highest number of internet users, and 11th in terms of cellular operations. Chemical and automobile production. Manufacturing of apparels. Energy and Power. Good relationships with China. Oracle and Microsoft have begun their operations in Italy.

Italian expenditure in IT hardware, services and software is one of the lowest in Europe. Currently, Italy doesn't have an internal software development market. Research and technological aspects are not upto the standards. Lack of Natural resources to support the manufacturing processes.

Lump in the technical field in Italy. Other than IT, no other technical field is showing signs of improvement.

Blend of technology with the fashion world. The Global economic downturn is still showing its effect.

ENVIRONMENTAL

FACTORS

STRENGTHS

Geographic location near the sea Surrounded by developed countries Diversity in culture. Fashion sensitive environment.

Huge industrial wastes Worlds 10th highest emissions of Carbon-DiOxide. Problems of Acid-rain and Biomass.

OPPORTUNITES

To enhance trade relations with the developing African countries like Egypt. Production of Smart/intelligent clothing which will suit its environmental conditions. To exploit the northern and the southern division of Italy

Huge carbon content emissions The great division between the northern and southern Italy.

Surrounded by competitors like France, Germany and Spain. THREATS

WEAKNESSES

LEGAL FACTORS

STRENGTH

WEAKNESS

OPPORTUNITIES

Belief in Fascism

Laws regarding the starting of business are easy.

Doesnt guarantee adequate protection of intellectual rights.

Export laws are not harsh. Low duties on Apparel Exports.

THREAT
Smuggling Isnt considered a safe place.

Reputation of being involved in corruption.

SWOT ANALYSIS Positive factors

S
Apparel exports are high.

O
Imports of Energy and raw materials can be a beneficial investment The prices of Real estate are holding up. A great tourist destination often opens the door for a beneficial retailing business.

Milan is one of the four fashion hubs in the world.

A great tourist attraction. Rome, Venice, Florence, Milan form the backbone of tourism Control over the Marine. Direct and good trade links with the rest of EU, US, and South Asia.

Transportation of goods are easy and affordable. Always in touch with the world.

SWOT ANALYSIS Negative factors

W
Political uncertainty. High Income Tax. Corruption. Technological hault.

T
Unstable Environment Increased chances of Smuggling

Not updated.

Expensive Labour
Non availability of natural resources. Division between Northern and Southern Italy Popular Crime zone

Starting a business can be a headache..

Direct effect on GDP. Chances of Profit attainability is low.

SWOT ANALYSIS Summary

SWOT summary

Though the demand for garments is increasing day by day but the production rate has still not been able to match with the ever rising demand. More production facilities are needed to meet the demand.
Most of the raw material needed for apparel manufacturing is available in the developing or under developed countries and Italy does not have enough resources and manpower to explore them The importers of developed economies are facing very stiff competition as countries like China are producing good quality products in low prices due to availability of very cheap labour. Crime and high income tax are not helping Italy inspite of being a fashion hub. The apparel exports are the only thing which is keeping Italy in the market. The democratic system of Italy is also a hindrance. Italy is under huge debts from the IMF and the things do not seem to be improving even after post 2010 era.

Shubhangi Agarwal Ashish Gerawada Ekta Shah Tarunendra Pratap Singh NIFT Bhubaneswar MFM( 2010-12)