Investigating the Factors Affecting Export Potential of Sports Goods Industry in Sialkot City: A Pestle Analysis

Abstract

The aim of this study is to analyze the factors influencing the  exports of sports goods in Sialkot. In order to explore these factors, a  survey was conducted through questionnaire, focusing on human  resource available on the part of firm, their training, the role of taxes in  this industry, technical collaboration and business development  characteristics along with characteristics of the owner. 40 firms were  surveyed through convenient sampling technique. Information was  collected by the firm’s managers or any other top management employee  regarding all the factors affecting performance of export-oriented firms.  CAGR (Compound annual growth rate formula) was used in order to  explore the growth experience of the export-oriented sports goods firms.  PESTLE analysis was conducted to evaluate the Political, Economic,  Social, Technological, Legal and Environmental factors affecting the  growth performance of sports goods firms. The results indicate that firms  experiencing growth employ more skilled labor as compared to those  undergoing negative growth. Owner’s characteristics also had an impact  on the firm’s performance as growing firms had more educated owners.  From the analyses of the data some recommendations have been  mentioned including establishment of skill development centers for the  work force, Common testing facilities, improvement in labor laws,  establishment of R&D departments, government interventions regarding  the policies of infrastructure, trade, and import tariffs should be managed  in favor of manufacturers.