Pace Leisurewear Ltd Case Study

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Pace Leisurewear Ltd Introduction

The Pace Leisurewear Ltd. focuses on providing high-quality fabric and clothing services to customers in UK, France and Switzerland. The provision of high-quality clothing services contributes to positive impacts on attracting a large number of customers. However, the recent increase in clothing service providers in the UK has contributed to a major decrease in the revenue of the brand. This study deals with conducting a detailed analysis on various internal and external conditions of the organisation. Conducting a Pestle analysis can help to gain information on the conditions of the UK and its impacts on the Pace Leisurewear Ltd. Additionally, conducting a SWOT analysis can help to analyse the internal conditions of the Pace Leisurewear brand.

Company

Pace Leisurewear Ltd

Type of Industry

Clothing and Fashion Industry

Sales/Revenue

 

Area Served

UK, France, Switzerland

Number of Stores

One in each country

Competition

Zara, Ralph Lauren, Tesco, Mark & Spencer

USP

Providing high-quality homemade fabrics and clothing

Target Group

People that have a soft corner for homemade products

Products

Clothing and garments

Website

 

Pace Leisurewear Ltd Swot Analysis

Based on the case study of Ford, the following strengths, weaknesses, opportunities, and threats of Ford have been presented:

Strengths

  • The Pace Leisurewear Brand provides high quality services in terms of clothing
  • The organisation has a high brand image due to the provision of handmade products

Weaknesses

  • Pace Leisurewear faces a lack in proper availability of suppliers. Therefore, suppliers of the brand have opportunities for bargaining and selling raw materials and services at higher rates.
  • The development of handmade products contributes to significantly high costs. This has a major negative impact on brand sales.

Opportunities

  • The Pace Leisurewear brand can expand their business to various locations in order to improve their sales and profits.
  • The company can improve their performances with the implementation of new innovative ideas.

Threats

  • The recent decrease in revenue values and higher amounts of turnovers has led to chances for major losses of the brand.
  • The Pace Leisurewear faces problems relating to low customer satisfaction due to the high price of products. The customers can, therefore, substitute a variety of products and services and buy them from other organisations.

Pace Leisurewear Ltd Analysis

Based on the case study of Pace Leisurewear Ltd, it can be stated that the company has high brand image due to the provision of high quality products and services. Additionally, the provision of handmade clothing products also contribute to increased sales of the brand. These factors also have positive impacts on customer satisfaction and loyalty. However, the recent increase in the availability of clothing services at lower prices have led to a decrease in brand profits.

Based on the case study of Pace Leisurewear Ltd, a large number of rival brands in UK such as Zara and Ralph Lauren also provide with high quality clothing services at significantly lower costs. Additionally, organisations such as Tesco and Morrisons also provide garments at even lower prices, leading to a decrease in profits for Pace Leisurewear Ltd. Additionally, the development of handmade products require significantly higher labour costs that affect the organisation adversely (Qiu, 2016). Even though a large number of people are interested in handmade products and services, most people look for products that they can buy at lower prices. This contributes to major issues with a decrease in sales for the brand.

Based on the case study of Pace Leisurewear Ltd, they have stores in UK, Switzerland and France. Therefore, as per da Motta and Hamilton (2019), expanding the brand to other countries worldwide can contribute to a significant increase in profits of the organisation. Additionally, the proper use of innovative ideas and strategies can help the brand to improve their sales and profits.

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The Pace Leisurewear case study provides insights regarding the revenue values of the organisation. It can be stated that the organisation experienced a significant decrease in revenue due to major issues with lower number of customers of the brand. Additionally, the brand experienced a major increase in turnovers leading to losses of the company. The high prices of products have contributed to a decrease in customer satisfaction and have offered with increased opportunities for product substitution.

Pace Leisurewear Ltd Pestel Analysis

Political

  • Brexit problems are the prime causes of increased instability within the country.
  • The lack of Free Trade Agreement between UK and EU has led to decreased political instabilities.

Economic

  • Decreased GDP growth rate in the UK
  • Decreased levels of inflation rate in the nation

Social

  • Increased diversity of cultures due to availability of people from various age groups.
  • Increase in the population in the UK leading to higher than potential customer availability.

Technological

  • Developments in UK and Chinese trade relations
  • Effective innovation leading to the use of modern technological ideas in organisations within the UK

Legal

  • Amendments in rules and regulations within UK
  • Compliance of organisations with laws, rules, regulations and legislations.

Environmental

  • Smart Agricultural processes
  • Use of renewable energy sources for daily operations.

Pace Leisurewear Ltd Analysis

The ongoing issues with Brexit have prompted the development of political insecurity and instability. These issues have occured due to the inaccessibility of government support in managing brand concerns (Clarke et al. 2017). According to the case study of Pace Leisurewear Ltd, the government is highly overworked due to the Brexit issues and thus cannot provide support for the company. Additionally, the unavailability of the Free Trade Agreement with different nations in the European Union has prompted diminished potential incomes of Pace Leisurewear Ltd. The ongoing advancement of import and trade relations with nations such as China and USA has led to a major decrease in benefits because of the need to pay high taxes for entry into the country or nation.

UK has endured a major decrease in the rate of GDP growth over the last few years. It was found that the GDP of the UK in 2017 was 1.8% and it decreased to 1.4% in the year 2018 (Statista.com, 2019). On the other hand, the inflation rate also experienced a steep decrease since the first quarter of 2019 which includes a change from 2.3% to 2.1% in the first quadrant of 2019. Therefore, it can be stated that Pace Leisurewear Ltd can buy raw materials at lower prices. However, the differences are not much and the brand still needs to pay suppliers with high prices in order to buy the necessary raw materials.

UK experiences a major diversity of various cultures which can help Pace Leisurewear Ltd to take into account the needs of people from various groups. Proper blending of various ethnic wear can have positive impacts on improving brand profits. However, the UK also experiences a large number of positive impacts due to the availability of significantly high population.

According to the viewpoint of Wignaraja (2016), UK and China have as of late created exchange relations for successful acquisition of various modern innovations. The utilization of Management Information Systems (MIS) can prompt positive effects on the activities of the Pace Leisurewear Ltd. The use of MIS systems can help to keep track of customer needs and develop products that can be effective in meeting these needs.

The recent amendments in Equality Act of UK 2010 (c.15) and the Data Protection Act 2018 (c.12) have prompted uniformity among representatives inside associations and have prevented sharing personalised data of employees inside various organisations (Legislation, 2019). Organisations such as the Pace Leisurewear Ltd are highly consistent with these standards and guidelines in order to prevent major losses of due to legal backlashes and backfires.

The UK wide open has executed keen horticultural procedures that include the utilization of solar energy gathering processes for harvest development during the night and the utilization of hydroelectric or wind power for hardware tasks. These procedures significantly affect the ecological states of UK in a positive way. Additionally, the use of renewable sources of energy such as solar power, wind and hydro-electricity also contributes to increased brand profits and higher sales.

Reference List

Clarke, H.D., Goodwin, M.J., Goodwin, M. and Whiteley, P., (2017). Brexit. London: Cambridge University Press.

da Motta, J. and Hamilton, M., (2019). Brand Expansion vs. Strong Consumer Relationships. Abingdon: Routledge

Legislation, (2019) Equality Act 2010 https://www.legislation.gov.uk/ukpga/2010/15/contents [Accessed on 08/08/2019]

Qiu, S., (2016), May. Research on Teaching Methods of Clothing Structure Design under the Transformation and Upgrading Development Mode. In 2nd International Conference on Arts, Design and Contemporary Education, 1(1), pp. 14-31. Atlantis Press.

Statista.com, (2019) Gross domestic product (GDP) year-on-year growth in the United Kingdom (UK) from 2000 to 2018 Available at: https://www.statista.com/statistics/281734/gdp-growth-in-the-united-kingdom-uk/ [Accessed on 01/08/2019]

Wignaraja, G., (2016). 18. Why trade with Asia is vital to the UK economy. The impact of the UK's post-Brexit trade policy on development, 4(3), p.65-71.

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