Vsm Sewing Machines
Case Study Analysis: The VSM Group
History of VSM Group
Strategic Capabilities Then and Now
PESTLE Analysis
PEST Analysis PEST analysis, a useful approach of examining the Political-legal, Economic, Social-cultural, Technological factors of the environment of an organization, can be used to examine the various aspects and trend in one industry by understanding market growth or decline, and as such the position, potential and direction for a business. (David & Nigel, 2006) As there is no evident political-legal and social-cultural influence on the operation of VSM Group in this case study, the main items that impact the organization in economic, technological aspects will be presented as follow:
Economic factor
a) Firstly, the demand for sewing machines in the western hemisphere had been declining for more than two decades. Industry profitability had deteriorated, particularly hard on manufacturers of industrial machines and low-price mechanical machines for domestic use.
b) Second, the sharp drop in demand for industrial sewing machines has result much more fierce competition on the professional side in Europe and in the US.
Technological factor
a) As the development of specialized software, the computer-controlled machines have become popular in the world market. Some world top manufacturers can make the entire range of computer-controlled machines. It makes the rivalry between VSM Group and other powerful manufacturers much more fierce and intensive.
b) Moreover, the great e-business shakeout and the plethora of ‘dotcoms’ raised has made the internet become a viable medium for the distribution trades. It has brought sewing machine manufacturers great opportunities to create new powerful distribution system through using the web-shops. After scan the external environment of VSM Group, although the economic environment is not that great, a favorable circumstance can be seen in technological factor. If VSM can develop more creative
History of VSM Group
Strategic Capabilities Then and Now
PESTLE Analysis
PEST Analysis PEST analysis, a useful approach of examining the Political-legal, Economic, Social-cultural, Technological factors of the environment of an organization, can be used to examine the various aspects and trend in one industry by understanding market growth or decline, and as such the position, potential and direction for a business. (David & Nigel, 2006) As there is no evident political-legal and social-cultural influence on the operation of VSM Group in this case study, the main items that impact the organization in economic, technological aspects will be presented as follow:
Economic factor
a) Firstly, the demand for sewing machines in the western hemisphere had been declining for more than two decades. Industry profitability had deteriorated, particularly hard on manufacturers of industrial machines and low-price mechanical machines for domestic use.
b) Second, the sharp drop in demand for industrial sewing machines has result much more fierce competition on the professional side in Europe and in the US.
Technological factor
a) As the development of specialized software, the computer-controlled machines have become popular in the world market. Some world top manufacturers can make the entire range of computer-controlled machines. It makes the rivalry between VSM Group and other powerful manufacturers much more fierce and intensive.
b) Moreover, the great e-business shakeout and the plethora of ‘dotcoms’ raised has made the internet become a viable medium for the distribution trades. It has brought sewing machine manufacturers great opportunities to create new powerful distribution system through using the web-shops. After scan the external environment of VSM Group, although the economic environment is not that great, a favorable circumstance can be seen in technological factor. If VSM can develop more creative