Gymshark: MICRO Environment Analysis

MICRO factors of Gymshark- Molly Edwards 

pastedImagebase640.pngAs well as MACRO factors, Gymshark must also take into consideration MICRO factors. Managers of Gymshark set the price of their clothing, taking into consideration the current competition in the market, target audience and the cost of production. Because this has such an effect on how much profit will be made, it is essential these staff are well experienced and communicate to the rest of the team in order to maintain the success of the company, and ensure it never makes any losses.  

Recent advances in technology brings huge benefits to a clothing brand like Gymshark. Mass production can now be achieved daily due to them having the ability to control high tech machinery, that works at a much faster pace than manpower alone. However, this equipment is usually costly, so is seen as a long-term investment. Due to their success, with the company having a net worth of £22.9 million, (as of 31st July 2018 according to Company Check), this investment isn’t as higher risk as it would be for a much smaller brand.   

pastedImagebase641.pngStock management is a critical success factor when a product is being provided for a customer. Individuals don’t want to be let down with constant out of stock notifications on products they are desperate to purchase, otherwise they make take their business elsewhere. If stock is controlled correctly, a larger number of popular products should be made to avoid disappointment. Also, it is up to members of staff to communicate about items that are not selling so well, so the marketing team can organise sales in order to shift merchandise and generate profit.  

pastedImagebase642.pngGymshark has been so triumphal because they have managed to keep up with current trends, constantly monitoring what appeals to their target market and what is in demand. As well as gym gear, the establishment now sells comfort clothing such as hoodies and joggers, as they discovered these items are in huge demand too. They have even branched out and designed a workout app for customers to use in the gym to plan work outs and discover different exercises to add to their routines. This is something they have done to broaden their customer base and therefore generate more income.  


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