-       The UK is a mature and developed market, thus offering  ease of doing business in terms of setting up and expanding its production and operations in the UK (Nugent, 2017). 
 

-       However, the political uncertainty over Brexit may negatively affect  operations, possibly ending free trade between the UK and the EU and making it more difficult  to make investment and operational decisions that may be affected by Brexit (Collins, 2017). 

Economical Factors

 

-       Brexit introduces economic uncertainty for the UK. This creates a negative economic climate and market environment in the form of an increase in inflation and lower wages for Toyota (Giles, 2017). 

Social and environmental Factors

·      Growing consumer awareness and attention on businesses’ social and environmental performance

More and more consumers are now becoming aware of and attaching great importance to businesses’ social performance when choosing brands. In a survey by Accenture, 42% of consumers suggest that they will reject brands failing to address social and environmental issues (Gonçalves, 2018). 

Technological analysis

·      Growth of social media as an important marketing channel

The development of web 2.0 technologies has led to the significant growth social media as an important marketing channel for retail brands such as Boohoo, allowing brands to directly connect and interact with consumers (Schmid, 2018).

 

·      Adoption of innovative technology by retail fashion brands

Retail fashion brands such as Lacoste are adopting innovative technologies such as showrooms equipped with augmented reality (AR) to improve the retail shopping experience for consumers and a survey has shown that 61% of consumers would prefer retail stores offering AR showrooms (Sheehan, 2018).

Legal analysis

 

·      Development of data privacy laws 

As electronic marketing becomes more and more important for retail brands, there is an increasing emphasis on protecting consumers’ privacy (Deloitte Insights, 2017). Development of data privacy laws such as the General Data Protection Regulations (GDPR) in the EU has created significant legal challenge for retail businesses like Boohoo to ensure that consumer data is collected and used by businesses in an ethical way with full consent (MacDonald, 2019).