Competitors and Nature of Market Competition

...

Improvement can take place in the near future depending on number of factors, for instance, investment in infrastructure and human development and so on.

Political

The political environment can add a risk factor and lead business to a major loss. The current situation of Pakistan is not suitable for this colossal industry. The biggest issue behind this unsustainability is the constant change of the government after every 3 to 4 years, and their implementation of new rules and trade policies which create nothing but problems for the traders. Government needs to keep in mind the policies that bring benefits to both the investor and exporters and in a way improve the trading and help stabilize the economy. All in all the investment will be considered nothing but risky due to repetitive political instability.

Nishat stays up to date with political factors.

Social

Rapid increase in inflation rates and changes in social trends can have multiple effects and impacts on demand for firms’ products and availability. In social factors demographics are given a lot of importance as it affects the demand of customers.

Nishat fulfils its social responsibility by keeping friendly attitude with its workforce and providing them with leisure time and a safe environment to work in.

Technological changes

Technology has become a part of our everyday lives and its importance is undeniable, it has also revolutionized the way people communicate or evolved the traditional processes with new modern procedures and plays an important role in strategic planning decisions. It reduces cost, improves quality, and saves time and lead to innovation. One issue that hinders the use of technology is the lack of electricity in Pakistan. A major setback that can slow down processes which in return reduces the profit. Pakistan textile industry has suffered losses due to the lack of electricity and most companies in result had to shut down.

To be successful in today’s world of tough competition, Nishat has progressed toward installing newly advanced technology that aids in different processes, and it helps them stay ahead.

Cultural

Pakistan has a very unique mixed culture; it’s an amalgamation of numerous ethnics combined with ethics, moral, values, and norms together it forms a stunning and beguiling national culture of Pakistan. The basic culture of Pakistan conveys the historical background, the salient features, and the way of life, rituals and the back to back traditions. The culture can be seen through our dressing, food, music and so on.

Therefore, people in Pakistan prefer clothes and designs that hold their traditional and culture value. Nishat in this case provides clothes which keep on innovating through designs and always keep the cultural and traditional element in their clothes, this way they are preferred over other brands and stay ahead in the competition.

Demographics

It’s a study of population based on, age, gender, race, income level, and education level. These generally collected to make certain generalization about various groups in order to identify their customers and choose their target market.

The social factors that affect the Nishat mills limited are the following:

- Population growth

- Age

- Status

- Safety precautions

The government has been unable to provide the textile industry with enough benefits for them to flourish. On the other hand, the internationals buyers are reluctant to invest as they believe it will be nothing but a risky shot and return on investment will be low than projected. There are many factors that hinder the success for instance gas, electricity, high interest rates, and increase in prices, all these combined makes it hard for a business to operate.

Despite all this Nishat is performing successfully as people needs and lifestyle change they also change and try to full fill their customers’ needs and requirement. They keep updating themselves according to the trends.

Natural environmental forces

This includes the change of climate and weather and in Pakistan as there are four seasons not every season is as effective for the crops growth or sustainability. The changes in a climate can affect a lot of industries for instance tourism, farming, and so on the firms have to consider these factors before making any decisions. There are industries that operate according to the climate change for instance cotton is best grown in spring and early autumn. Due to that reason the company locate its mills in those places where their growth is conducive.

Moreover, with global warming rising people have become conscious and are moving towards environmental friendly products and processes.in case of Nishat it continually updates, as the season changes they introduce clothes that fit according to the climate. The company stays aware of what is good for the environment, it takes precautionary measures to save from polluting the environment for instance it has set up a water treatment plant.

Geographic

the geographical presence of the company mainly lies in most of punjab extending towards Sindh, with very few in Balochistan and khyber pakhtunkhwa. The subsidiaries are

Nishat Power Limited

Nishat Linen (Private) Limited

Nishat Hospitality (Private) Limited

Nishat Commodities (Private) Limited

Nishat Linen Trading L.L.C

Nishat International FZE

Nishat Global China Company Limited

Nishat USA., Inc.

Nishat UK (Private) Limited

Lalpir Solar Power (Private) Limited

Description

Weight

Rating

Weighted Score

Opportunities

Large