Q1

Introduction
A STEEP (Social, Technological, Environmental, Economic and political) analysis is a tool
commonly used in marketing to evaluate different external factors which impact an organization.
It is essential for every business to consider some external forces before they can take decisions.
The STEEP analysis is often conducted by firms to get a detailed overview on what external factors
determine the trends. It also helps to predict what might happen in the future.
STEEP is basically an acronym which stands for Social, Technological, Economical,
Environmental, and Political which includes following ingredients:

Economic

Environmental

Ploictical
Social

Technological

Consumer Innovation Interest rates Water Affection of

behavior Communicatio International Wind political
Demographics n trade developments
Food
Religion Energy Tax savings Political
Soil stability
Life style Transport Inflation Oil Regulation of
Values Research & Subsidies Energy monopolies
Advertising Development Availability of Polution Tax policies
Patent jobs
regulation Environmental Price
Entrepreneursh regulations regulation
Production life- ip
cycle Consumer
protection
Jurisdiction
Trade unions

Consumer and B2B companies tend to be more affected by the social factors, while a global
defense contractor would tend to be more affected by political factors. Additionally, factors that
are more likely to change in the future or more relevant to a given company will carry greater
importance
STEEP is commonly used to gain an insight into past, current and future of the external
environment developments during times of uncertainty, times of information overload and times
of disorganization.
So, STEEP analysis is conducted when members are unsure about how the market will react to
changes in particular elements. It’s also used when there is a constant flow of information from
the external environment for a company or when firms seem confused about the external
environment. It is a framework or tool used by marketers to analyse and monitor the macro-
environmental (external marketing environment) factors that have an impact on an organisation.
The result of which is used to identify threats and weaknesses which is used in a SWOT analysis.
It is also known around the world as PEST, PESTEL, PESTLE, STEPJE, STEP, STEEPLED, and
LEPEST.
STEEP analysis report for M/s Swadeshi
Social Factors
A small clothing manufacturer needs to create styles that appeal to those of different cultures,
especially if those cultural groups represent large enough segments of its market. An aging
population may also increase the demand for larger Kurtas and Pyjamas sizes, such as relaxed or
looser-fitting styles and tight-fitting sizes for young generations. Many people become more
sedentary when they get into their 40s and 50s. Consumers' waistlines expand so they need larger
sizes and more room for comfort. Also, decreases in birth rates in some areas will lower the
demand for traditional cloths of kids.
Technological factors
Retailers may increase the prices of cotton clothing if they encounter shortages of this raw material,
as they must pay their manufacturers more. The introduction of new clothing styles by a competitor
can shift demand away from older fashions. Hence, a small clothing manufacturer like M/s
Swadeshi may need to discontinue certain clothing lines and produce new ones that meet the needs
of consumers. Technological microenvironmental factors affecting the clothing industry include
availability of resources, demand and production. For example, the scarcity of certain materials,
such as cotton or silk, may force retail and wholesale clothing companies to sell more faux or
substitute leather products.
Economic factors
Retailers may be stuck with large amounts of inventory. And they may have to sell the clothing at
substantially reduced prices. M/s Swadeshi may also need to sell lower-priced clothing brands to
compete with more generic brands. Consumers often shop for cheaper brands when they have less
disposable income. Economic factors can have both positive and negative impacts on the clothing
industry. During economic boom periods, people have more disposable income. Hence, they may
buy more clothing, increasing sales for clothing manufacturers, wholesalers and retailers.
Environmental factors
Events like droughts, tsunamis or floods are often unforeseeable and can harm the growth of cotton
and the maintenance of manufacturing facilities. Since many retailers have shifted the production
to so-called developing countries in Asia. Growing non-organic cotton requires a big amount of
chemicals, water and pesticides, which harm human health and have a significant, long-lasting
impact on the environment. Besides, overconsumption in the fast-fashion world leads to greater
amounts of waste creating disposability problems. the environment. Besides, overconsumption in
the fast-fashion world leads to greater amounts of waste creating disposability problems.
Textile production facilities use a lot of energy, water and chemicals generating contaminated
water and toxic volatile emissions. No one wants to eat a meal laced with plastic, but if something
doesn’t change in our current textile economy, that could soon be a reality.
Political Factors
The textile industry has repeatedly been affected by issues such as workers' rights and child labor
laws. Union workers in clothing manufacturing plants may picket their employers, especially if
their wages or medical benefits are less favorable than workers in comparable industries. M/s
Swadeshi need to be able to respond to the current and anticipated future legislation and adjust
their marketing policy accordingly. Legal factors include - health and safety, equal opportunities,
advertising standards, consumer rights and laws, product labeling and product safety. In addition,
this can also include - government policy, political stability or instability, foreign trade policy, tax
policy, labor law, environmental law, trade restrictions and so on. These are all about how and to
what degree a government intervenes in the economy.
It is clear that M/s Swadeshi need to know what is and what is not legal in order to trade
successfully. If an organization trade globally this becomes a very tricky area to get right as each
country has its own set of rules and regulations.
Conclusion
Technology is playing a great role in the marketing of fashion products but is also posing a threat
of competition. Therefore, creating a brand image based on ethics and providing environmentally
friendly products has become essential for the survival in the global fashion industry. Among the
five factors, macro factors known as STEEP are purely of external nature need to be carefully
understood and researched by the fashion industry for carrying out the business in ethical and
environmentally friendly way for its sustainability.
Indian Textile Industry is an independent & self-reliant industry but government stated strong
labour laws for this industry. Market is gradually shifting towards Branded-Readymade-Garment
and has opportunity in foreign market and domestic market. So, the government should be
introducing measures such as the National Technology Upgradation Fund and removing the
differential taxation scheme which discriminated against large units. Although Textiles have
historically formed an important part of India’s economy. India’s cotton and silk production were
among the highest in the world.
Q2
Introduction
In 1980, Michael Porter published Competitive Strategy, a work that shaped the thinking of a
generation of academics and managers. Included in that foundational text (the first chapter, in fact)
was Porter’s description of “five forces” that shape the structure of all industries and in large part
establish the rules of competition and the root causes of profitability within an industry.
The five forces are the threats posed by competitive rivalry, powerful buyers, powerful suppliers,
potential new entrants, and substitute products. Although Porter mentions only five forces, the
sixth one — relative powers stakeholders — is added here to reflect the power that governments,
local communities, and other groups from the task environment wield over industry activities. This
model helps to identify and then helps to analyse the main five competitive forces prevailing in
every industry. It also helps in discovering the strengths and weaknesses of an industry.

Rivalry Threats of
Bargaining Bargaining
Threat of among substitute
power of power of
new entrants existing product or
buyer supplier
firms service

Porter believed that by understanding the level of competitive intensity, you could determine the
attractiveness of that industry. Here attractiveness refers to profitability of the industry not how
much we like it. During increased competition, companies need more than usual resources to
survive, which ultimately leads to less attractiveness.
Porters model supports analysis of the driving forces in an industry. These forces determine the
intensity of competition and hence the profitability and attractiveness of an industry. The objective
of corporate strategy should be to modify these competitive forces in a way that improves the
position of the organization. Based on the information derived from Porter’s Five Forces Analysis,
management can decide how to influence or to exploit particular characteristics of their industry.
Porter’s five forces
Threats of new entrants
The lower the barriers for market entry, the easier it is for new competitors to enter the market thus
leading to higher competition and thereby increasing the risk of price wars and a lower margin.
Hence, an attractive industry usually has high entry barriers. M/s Swadeshi, the new entrant may
have limited experience in textile manufacturing as well as selling and there are no built up
relationships with customers, it might experience disadvantages relative to the established
competitors. Without any established client portfolio, it is difficult to attract, endure increased
costs in creating sample collections to show potential customers. Hence, in startup phase costs are
not only associated with the manufacturing required but also with the costs for designers and
creating samples.
Rivalry among existing firms
This force is the major determinant on how competitive and profitable an industry is. In
competitive industry, firms have to compete aggressively for a market share, which results in low
profits. The apparent high growth rate of total textile exports indicates that the rivalry between
manufacturers is low. Additionally, textile as a perishable product group is in the risk of
temptations to cut prices when demand slackens.
It is reasonable to believe that expansions may occur on the behalf of competitors if possible, and
thereby increase the rivalry in the industry. It is therefore reasonable to believe that such
expansions may occur on the behalf of competitors if possible, and thereby increase the rivalry in
the industry.
Threats of substitute product or services
This refers to the likelihood of your customers finding a different way of doing what you do. A
substitution that is easy and cheap to make can weaken your position and threaten your
profitability. This force is especially threatening when buyers can easily find substitute products
with attractive prices or better quality and when buyers can switch from one product or service to
another with little cost.
When using such a broad term as Textile, there are obvious reasons for identifying substitute
product groups proves difficult. Variations in textile segment can also be identified as trends in
fashion and styles. Hence products within the apparel segment can act as substitutes but the general
conclusion still stands; there’s no substitute to apparel.
Bargaining power of customer
Buyers have the power to demand lower price or higher product quality from industry producers
when their bargaining power is strong. Lower price means lower revenues for the producer, while
higher quality products usually raise production costs. Both scenarios result in lower profits for
producers.
The bargaining power of customers is strong. For that reason, it is of importance for a producer of
apparel to differentiate their products or production so it will not compete with price as primary
mean. There is a need to tie the customer to manufacturers without the need of explicit contracts.
Differentiation is accomplished either by quality or service. Differentiation can be considered as
especially important in the Indian textile industry since contracts are usually set on short-term basis
and are rarely set more than six months ahead. Thus, the bargaining power for the customer is
improved.
Bargaining power of supplier
Bargaining power of suppliers depends on level of supplier concentration, importance of volume,
and threats of forward integration. Suppliers are powerful when they are concentrated and there is
a high treat of forward integration, affecting the buyers’ ability to achieve profitability. Textile and
apparel manufacturing in India are highly fragmented and characterized by high density of
suppliers, mostly operating independently on small scale.
As a result, manufacturers can contact a large number of suppliers and play suppliers against each
other. The large number of available suppliers in India gives an initial indication of a weak
bargaining position for the supplier group. Additionally, the supplier group lacks switching costs
and has a low level of product differentiation. This leads to great possibilities for textile
manufacturers to scout the supplier group for best terms and prices for production.
As a result, such behavior pushes prices down as well as makes prices similar among suppliers and
weakens the bargaining power of the supplier.
Conclusion
In a changing marketplace, Textile industry will continue to expand their product lines and
marketing reaches to be more powerful in global. In India textile industry is the second largest
employment maker and it is the second largest in the world. It holds major position in India as it
offers one of the most basic necessities of the citizens
As one can grasp from the above analysis, the potential for the sector's growth are ample.
Consolidation of the textile industry and delivery of better-quality cloths at effective rates and
minimum lead time would certainly help the players vanquish all competitive pressures.
Q3 a
Introduction
A SWOT analysis is a compilation of your company's strengths, weaknesses, opportunities and
threats. The primary objective of a SWOT analysis is to help organizations develop a full
awareness of all the factors involved in making a business decision. It is is a planning process that
helps your company overcome challenges and determine what new leads to pursue.
According to Investopedia, “SWOT (strengths, weaknesses, opportunities, and threats) analysis is
a framework used to evaluate a company's competitive position and to develop strategic
planning.”
SWOT analysis is a tool for auditing an organization and its environment. Strengths and
weaknesses are internal factors. Opportunities and threats are external factors. It is wise to conduct
a SWOT analysis prior to opening or expanding an industry business. Before plunging into
unknown industry as a world.
SWOT Analysis for M/s Swadeshi
Strength
Indian textile industry is an independent & self-reliant industry. Indian industry has a very strong
multi-fiber base and raw material. India ranks third largest producer of cotton and second largest
producer of silk and fifth largest producer of synthetic fiber and largest producer of jute. Hence,
availability of large varieties of cotton fiber and has a fast-growing synthetic fiber industry. Also,
availability of low cost and skilled manpower provides competitive advantage to M/s Swadeshi.
A brand's strengths are resources that contribute to its competitive edge. Factoring into a line's
strengths are its reputation, its loyal consumer base, proprietary knowledge, competitive sources
of raw materials, talented labor pools, industrial advantages and trade connections.
Weakness
Lack of strength in an area equals weakness. Indian textile industry is highly fragmented industry
as well as it is highly dependent on cotton. Lack of technological development that affect the
productivity and other activities in whole value chain. A new designer, without a reputation, is a
negative point. This lack of name recognition would be listed as a specific weakness. A new line,
without a following and very low investment on R&D, would be another weakness. Unfavorable
labor laws and costly labor source would be added into the category. Less attention on man power
training, inferior quality standards and competitive disadvantages within company control land in
this portion of the study.
Opportunity
Emerging opportunity often proceeds the SWOT. The trade is growing between regional trade
blocs due to bilateral agreements between participating countries. India has the opportunity to
increase its UVR’s (Unit Value Realization) through moving up the value chain by producing
value added products and by producing more and more technologically superior products. Supply
Chain Management’ and ‘Information Technology’ has a crucial role in apparel manufacturing.
Availability of EDI (Electronic Data Interchange), makes communication fast, easy, transparent
and reduces duplication.
Another factor relating to competitive advantage which could be an opportunity that, the Indian
textile industry is not able to maintain balance between price and quality. Therefore, most of the
big companies in the United States and the European Union are shifting their manufacturing orders
to China. Hence, demand for traditional cloths may increase than western culture, if M/s Swadeshi
has better marketing strategy.
Threats
Competition from other developing countries, especially China is the biggest threat to the Indian
textile industry in the global market. There has been an increase in seasons per year which has
resulted in shortening of the fashion cycle. India will have to open its protected domestic market
for foreign players thus domestic market will suffer. India will have to open its protected domestic
market for foreign players thus domestic market will suffer.
However, bigger external factors, such as an economic downturn or political uncertainty, could
also play a major role in this. These factors could affect the local economy, bringing down
exchange rates and impact the cost of both imports and exports.
Conclusion
The SWOT analysis aimed at helping the company management to formulate their long-range and
short-range strategy. In the current competitive environment company’s top management and
managerial level people should know their internal strength, weakness and external opportunity,
threats. Hence this study becomes more relevant to identify the SWOT analysis variables, so as to
plan their strategy in a focused manner. This study helps them to concentrate the highly important
SWOT variables rather than less important variables for their strategic planning.
Q3 b
Introduction
A reasonable forecast not only relies on scientific theory, reliable data, and an advanced approach,
but also on forecasting experience, logical reasoning ability, capacity of comprehensive analysis
and, of course, the judgment ability of the forecasting personnel. The first approach involves
structured communication technique or method, originally developed as a systematic, interactive
forecasting method which relies on a panel of experts. On the other hand, the second method is to
forecast demand by using the past data through statistical techniques. Thus, we can say that the
techniques of demand forecasting are divided into Delphi methods and Statistical methods.
Broadly, these methods are also categorized as Qualitative and Quantitative Forecasting
respectively.
Analysis
Delphi technique is very much similar to the brainstorming technique. The only difference between
brainstorming and Delphi technique is that in a Delphi method, group members don't interact
personally. Here, such personal interaction is impossible because group members are physically
present at different places. The method contrasts with brainstorming in securing independent
judgment by having experts complete a detailed questionnaire independently and without
knowledge of the responses of other experts. The Delphi technique can usually achieve satisfactory
results to all participants, how much work is involved for them to develop their forecasts, and their
speed in responding.
The aim of the Delphi method can become to assess the probability of the implementation or
consumerization of critical textile technologies that were determined during the earlier stages of
the foresight selling cloths online. Two methods can be selected as the most adequate for the
achievement of this goal:
1. Policy Delphi – form of electronic survey performed with the use of a specially prepared
platform. Basing on an iterative exchange of information, it is a form of structured
communication process amongst a group of anonymous persons/experts possessing certain
knowledge and representing different options (scientific employees, managers and
technologists employed in companies, employees of administration, consulting companies,
banks, social partners).
2. Delphi conference – form of stimulating workshops. Its aim was to broaden the discussion
about the probability of implementation/consumerization of critical textile technologies,
with the directions of public intervention (philosophy and instruments of support).
The major statistical methods used for demand forecasting are Trend Projection Method and
Regression Analysis. Trend projection method is useful where the organization has a sufficient
amount of accumulated past data of the sales. It is assumed that the past trend will continue in the
future. Thus, on the basis of the predicted future trend, the demand for a product or service is
forecasted. But life happens; situation prevails; hence it is not always possible to depend on past
data. It may happen due to technological changes in industry, changes in government policies,
changes in taxation systems, etc.
The regression equation is derived assuming the relationship to be linear. Regression Equation:
Y=a+bX. Where Y is the forecasted demand for a product or service. Regression can be defined
as a functional relationship between two or more correlated variables. It is used to predict one
variable given the other. Here in above equation Y is the value of the dependent variable that we
are solving for, a is the Y intercept, b is the slope, and X is the independent variable. Linear
regression is useful for long term forecasting of major occurrences and aggregate planning. For
example, linear regression would be very useful for forecasting demands for cloths in the families.
Even though demand for individual cloths within a family may vary widely during a time period.
Conclusion
Developing a forecasting system is not easy. However, it must be done because forecasting is
fundamental for any planning effort. The ideal philosophy is to create the best forecast that can
hedge by maintaining flexibility in the system to account for the inevitable forecast error. The
selection and implementation of the proper forecast methodology has always been an important
planning and control issue for most firms and agencies. one way to increase the forecast accuracy
is to improve the existing method instead of changing the technique completely or acquiring new
expensive forecasting software. Another approach to improve the current forecast accuracy is to
implement changes to the existing supply chain.