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.