PESTLE Analysis of Prada to Identify Its Business Tactics


by Shamsul
PESTLE Analysis of Prada
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PESTLE Analysis of Prada

To uncover the political, economic, social, technological, legal, and environmental factors of a business, PESTLE is the most useful tool that also helps to identify its business tactics. It shows various external factors which affect the business performance of the company. It is one of the useful tools for businesses and brands like Prada. PESTLE gives complete insight about market dynamics. Let’s start the PESTLE analysis of Prada:

Political Factors:

Prada specializes in manufacturing clothes, shoes, watches, and perfumes. It manufactures high-quality leather shoes and apparel. It is one of the world’s biggest fashion brands, which has a reputed brand name and reach. Prada has a presence in 70+ countries with effective business strategy and marketing. As an Italian brand, it has a different association with different countries.

Moreover, it is also very prone to the political conditions of Italy. Due to such factors, they change their business strategies occasionally. Other factors like corruption, new initiatives, and policies also have a huge impact on the business of Prada. So, political stability is crucial in those regions where Prada operates. It also involves supply chain, distribution, import, and export factors. Moreover, the risk of military invasion or any other activity can also affect the brand’s name. So, Prada must consider these factors before venturing into any country, region, or territory.

Economic Factors:

It is a fact that the overall economy of Italy is susceptible to the international economy. You can take the example of the 2008 economic recession in this regard. It is hard to recover in this environment where the economic condition is declining. It leads to various problems such as unemployment, inflation, and poor spending power.

Global companies like Prada can’t survive in this economic condition. The recent event of Brexit has been affecting the business of Prada. The currency rate also plays a huge role in this matter. As Prada operates in USD, it is highly dependent on the US markets. Prada should also focus on labor laws and labor wages of the country where it operates.

Social Factors:

It was a common misconception that fashion is only related to rich and urban people. But, it is not true these days because everyone loves to shop for unique and fashionable clothes. The disposable income of people is increasing with the passage of time. They represent their class and status through their clothes and fashion. So, you can’t neglect the impact of the social factor on style. Prada must keep social factors in the mind of a country they want to offer their products. Any mismatch in this segment can lead to poor annual sales and revenues. Women must be their primary concern because of their offerings. So, targeting customers on the basis of their food and culture is important. In this way, they can retain and attract new customers.

Technological Factors:

Technology is ever-evolving, and as a global fashion brand, you need to bring innovation in your marketing, research and development, and other working factors. By inducing the latest technology in your business, you can increase the pace of your business in the competitive market. Since its inception, Prada has been paying maximum attention to this factor. They have made various collaborations with tech brands like LG. They give the complete visual look of their products on the website by adopting the latest technology. As a result, they give their customers a better shopping experience, whether online or in-store.

Legal Factors:

As a global brand, you are prone to several legal concerns. There are various legal factors present in the lifestyle and retail sector. It is tough to survive in the fashion market, from changing taxation policies to fines, penalties, labor laws, environment laws, intellectual property rights, and much more. Prada must follow all the legalities of a country in order to keep running its business. Otherwise, they can face huge penalties and fines as well as lawsuits. They have to follow labor laws as well as environmental laws to avoid hatred from people. These things can play a huge role in the company’s business performance.

Environmental Factors:

There is no doubt about it that the fashion industry is growing at a very fast pace. We see new designs and trends every day. But, the environment is one of the biggest factors these days. Prada must reduce its carbon footprint and pollution to win the hearts of eco-conscious users. By making their business eco-friendly, they can attract more customers. It is suitable for the company and good for our environment. Prada should adopt renewable energy sources. They should produce eco-friendly products.


The above factors are really crucial for the business performance of Prada. They can impact the business of Prada at any time. Prada must consider these factors before venturing into a new region or making a new policy. In this way, they can make their business very smooth and can also increase its profit margins.


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