Reflective report

Analysing the External environment:

Porter’s diamonds framework on sports footwear company: ENext Gen

This analysis will help determine the external factors that the company cannot control. Here, is the brief outcome of the analysis:

1. Factor condition:

For the provided data, it is known that our E NextGen is a global company. So, it tells that the company has to compete over the other four companies. In North America, NextGen is located in a market that is providing the resources to produce quality footwear products. People here have a better understanding of the industry and has all the infrastructure facility to become a competitive global company. However, these two factors cannot be the primary cause of the company abysmal performance in the BSG games over the last years (Zhou and Liang, 2011). In Term of labour resources, our company E in North America does not have the advantage in terms of cost labour. They are paying a high compensation rate in North America and Europe Africa seems to be a better option. Also, it is offering slightly less workforce productivity of 4.183 rather than half the compensation price.

2. Related or Supporting Industry:

The existence of suppliers and associated industries within an area is also critical to the success of firm E. Innovation and internationalisation are bolstered by competitive suppliers. Suppliers are important, but so are connected firms. The competitive efforts score indicates that the firm has a competitive edge over its competitors in several areas, such as having the highest industry score among its competitors (Abdulkadir, 2020). However, it has not acquired the confidence of market participants. As a result, it has a lower investor expectation score than Alair and Balance.

3. Home Demand Conditions:

If the condition of the markets is compared then the results are quite intriguing. As in terms of price and S/Q rating the North American Market has fluctuated over the last years. While my company E observes stability in over regions and seeing comprehensive growth. However, the module availability is limited in other regions but that factor cannot be a determining factor. Also, the cost per S/Q star is less in Asian Pacific region while it is 9.16 in North America and 24.21 in Europe Africa (Tsiligiris, 2018).

PESTEL Analysis:

Political: In terms of the political environment, I have observed that North America is a stable region with better facilitating policies and environment (Yüksel, 2012). Latin America, Europe Africa and Asia Pacific regions are sometimes effort the market of companies because of political turmoil and market forces extensive involvement.

Economic: I have analysed that in terms of the economic environment, the North American region is better than all others. People over there have better purchasing power. For instance, in year 15 highest number of pairs are sold in this region i.e., 1210. While in other regions only 500-600 pairs of shoes are sold (Blery, 2014).

Sociological: The data provided does not give any clear idea about the sociological aspect of competitiveness. However, the celebrity appeal can be used here. I have identified that celebrity appeal has improved the overall sales in wholesale in North America and Latin America. This shows that people endorse a product that is used by celebrities. Also, the people purchasing patterns are brand oriented.

Technological: The potential of 3D. With increased design optimization, Nextgen must maintain a close watch on the development and enhancement of user experience. This has the potential to drastically change the customer’s user experience.

Legal: Waste management, particularly for units in metropolitan areas, has become increasingly important for players like Nextgen. Governments in North America have enacted severe waste management regulations in metropolitan areas (Ojeda‐Gomez, 2007). Another exciting topic for Nextgen is renewable technologies. It can take advantage of the industry’s current trends.

Meso-environment (Competitive Environment)

Porter Forces Analysis:

Threat of New Entry

The threat of entering a new market is being stable for a long time is higher in North American. The BSG report tells that when my company E internal conflict rises in the last years, its market share value came down to zero in this region. While the market share remained the same in other regions which are about 8.3 per cent (E. Dobbs, 2014). This shows that without a proper mechanism entering into the N.A market is a great threat…..