The purpose of this analysis is to apply the industry analysis models Essay

The purpose of this analysis is to apply the industry analysis models introduced in chapter four. The two models are PESTEL and - Essay Example Rationale behind choosing the Retail Sector The study has selected retail sector under NAICS with code 44-45 (NAICS, 2013b). The retail sector is an important sector which covers a wide area of the business in today’s world. The retail trade market accounts for almost 12.4 percent of the total business establishments in United States. The single store businesses are said to account for almost 95 percent of the entire United States retailers. Some of the big retailing companies include Wal-Mart, Zara, Target Corporation, Benetton Group etc. However, this study would be focusing on the retail trade industry in Canada. The study has selected this sector as it covers a wide segment of the business world with huge growth prospects. NAICS Industry Profile: Retail Trade Industry Retail trade is the sale of products and services by the individuals or the businesses to the end users. The retailers include a part of the integrated system known as the supply chain. The retailer buys prod ucts or goods from the manufacturers in large quantities either directly or through whole sale and then sells them in small quantities to the customers in order to gain good profit. This industry covers a huge portion of the businesses where retailing can be done in fixed locations by means of stores and markets, or can be delivered to the customers directly. The term retailer is applicable for the service providers as well. These service providers provide services like electric power, public utility and such for many individuals. The industry comprises of small business shops. These shops may be located in the residential streets, different shopping streets or in the shopping malls. Online retailing being one type of electronic commerce which is utilized in the business to consumer transactions i.e. B2C include non-shop retailing. The retailing industry can be said to be one of the most dynamic industries in the world. It is considered as the one of the ever growing businesses cate ring products and services to the changing needs and demands of the customers. The companies belonging to this particular industry sell the merchandises or products to its consumers from a definite location. Retail industry is the second biggest industry in entire United States in terms of both number of employees and establishments (Research and Markets, 2013). It generates a retail sale of $ 3.8 trillion annually. It also includes the largest sector worldwide. The next part of the project would be conducting the macro environmental analysis of the retail trade industry by means of PESTEL Analysis and Porter’s Five Forces Analysis. PESTEL Analysis The PESTEL Analysis helps in describing an essential framework of different macro environmental factors which are used in the environmental scanning of a particular organization (Pettigrew, Whittington & Thomas, 2006; Lorat, 2009). Political/Legal Canada is a democratic country with one parliamentary government. It consists of thre e main parts: a) Federal, b) Provisional and c) Municipal (Parliament of Canada, 2012). The government provides huge scope for the retail industry. It facilitates the growth in the industry. The policies on the economy and trading agreements as specified by NAFTA are essential to be followed by the companies operating in this industry (Foreign Affairs, Trade and Development Canada, 2013). The increased limitations in the