Situation Analysis of Tradie Underwear Free Essay

Introduction

Tradie was established from the aspiration to put some humour, function personality, and personality into the underwear market. This company was started in 2010. It initially began as an underwear brand then later grew into various categories for the entire family encompassing babywear, workwear, tools, beauty, and boots (“TRADIE Underwear,” n.d.). From the start, Tradie Brand has firmly established its course, capitalizing on its opportunities and breaking the rules, to enhance fan. The products of this company are focused on products suitable for outdoors and adventures while keeping it real (“TRADIE Underwear,” n.d.). Tradie is a family-owned business based in Australia which has a unique company culture created by likeminded individuals who produce excellent products for an iconic Aussie brand. The compound focus on creating comfort, practicality and durability in its products. Essentially, the company is concerned about a sustainable future in its business. This paper will undertake a situation analysis of Tradie. It will present a customer analysis, SWOT analysis, micro-environment and macro- environment analysis of Tradie.

Customer profile

The leading brand for Tradie is the Tradie underwear. The targeted customers for this company are men, women, kids and babies. Men are the top customers in this company. Men tend to purchase, underwear, workwear, socks and boots. While women purchase underwear and workwear (“TRADIE Underwear,” n.d.). Products available for kids are underwears. Babies can be bought products such as zipsters, bottoms, and tops. Due to the diversified products produced, the customers have increased significantly. Other customers are surfers and swimmers who buy underwear. Most customers are men as they tend to purchase workwear to use at their workplaces. However, there is an increase in women customers due to their changing perception of work to participate in manual jobs (“TRADIE Underwear,” n.d.). The number of women picking up tools has significantly increased, thus increasing the demand for stylish female workwear. This company has customers from Australia of all ages and gender in need of their iconic Aussie brand.

The market for this company is enormous since its products are regarded to be vital for common people. The target market is mainly Australian people and products are designed based on lifestyle changes. The products target people of all ages. The iconic underwear is suitable product that has a mass-market appeal targeting people of all class and age groups. But the primary market is people between the age of 25 and 50 living in the metropolitan areas in Australia (“TRADIE Underwear,” n.d.). Taking into consideration lifestyle, individuals belonging to these age groups fit the target market.  They are cultured, mostly married, and rent flats living with their families. They are energetic people who want to wear comfortable Tradie underwear.

Micro-environment analysis – SWOT analysis

Strengths

• Tradie targets a significant population of Australian customers
• It has several experienced business units.

Weaknesses

• The company has a poor cost structure
• It has an improper future debt rating

Opportunities

• It has a growing demand for its products worldwide
• The increasing economy can increase its business
• There are opportunities for new acquisitions
• There is a constant increase in the Australians level of income
• Tradie can also make investments in other sectors, such as sportswear (Weller, 2013).

Threats

• The increasing cost of raw material can affect the company’s profitability.
• The increasing cost of production, making the company, incurs high production costs.
• The changes in tax structure can minimize the company’s profit margin
• Government regulations alterations can be an obstacle to the company’s operations.
• It can also encounter issues because of technical problems like backdated manufacturing machines, which can make the production process slower (Weller, 2013).

Macro-environment analysis – PESTEL Analysis

Political

The political factors within the Australian clothing industry show full support from the government. The Australian government imposes fair import duties as well as tariff barriers that are efficacious for Tradie. The country has high political stability, favorable government policies, and agreements concerning trade as well as favorable taxation for businesses (Cooney & Long, 2014).

Economic

Economic conditions in Australia presently suggest that there is a constant purchasing power for the people in Australia. Improved standards of living are noted. There is a strong demand for clothing as well as strong dollar value at the international level, thus becoming more favorable for Tradie. The economic growth of Australia has a positive effect on the income of consumers as well as their amount of savings, and this has improved their confidence in purchasing Tradie underwear brands (Rosenbaum-Elliott, Percy, & Pervan, 2015). The economy growth has also led to declined rates of unemployment that leads to increased buying power for the consumers. The enhanced exchange rate also has improved the exportation of products.

Social

With the increasing concerns for environmental conservation, people nowadays prefer eco-friendly products. The clothing demand in Australia signifies that people tend to have a preference of buying high-quality products which Tradie strictly adheres to (“TRADIE Underwear,” n.d.). The Tradie Brands are in accordance with Australian cultures and religions. Due to differences in cultures among different countries, challenges can be experienced in exporting Tradie Brands because of the absence of consumer preferences.

Technological

The technological trend is essential to Tradie by exploiting technology to attain higher exposure within the clothing industry. Tradie is utilizing modernized technologies in manufacturing quality products. It also can utilize online shopping website to distribute its products (Weller, 2013). This online website offers an improved opportunity to view a variety of products by many customers worldwide.

Environmental

The climatic and weather conditions also have a significant impact on Tradie’s business. Australia is located in the southern hemisphere with a suitable climate to wear products from Tradie Brands (“TRADIE Underwear,” n.d.). Changes in climatic conditions can have a big impact on business operations.

Legal

Australia has the Trade Practices Act, which came into use in 1974 as well as the international conventions and agreements are essential factors to the business. These acts, agreements as well as conventions are favorable for Tradie, therefore, improving its product distribution resulting in improved profits (“TRADIE Underwear,” n.d.). Such legal regulations and laws have created more opportunities for Tradie’s expansion.

Conclusion

To sum up, Tradie Underwear Brands has a vital position within the clothing industry. The company still has a lot to do to overcome competition from other competitors. Tradie enjoys a wide customer base in Australian market. The company has a big market and its primary customers as Australians between age groups of 25 and 50. Its products are popular in Australia and suitable for Australian religions and sub-cultures. Tradie has to establish a low-cost structure model and also enhance their online business technologies to make a positive effect on its customer base. Suppose, Tradie focus on implementing innovative strategies through proper use of available resources. It will be able to dominate the Australian and world clothing industry.