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Legal- This includes discrimination law, consumer law, labour law, competition law, and health and safety law. Dior needs to follow all of these laws in order to stay a company. These factors can affect how a company operates, its costs, and the demand for its products. Intellectual property (or IP) refers to creative work which can be treated as an asset or physical property. By knowing your rights and having the right type of protection you can stop people stealing or copying. This was something Dior focused on, in order to make boundaries so people couldn't copy his unique work.

Dior website

Legal- Intellectual property for the fashion accessories at Dior.

There are license agreements with many stores that can sell Dior items such as accessories, fragrances, beauty and eyewear but clothing is generally only sold in store at Dior. Dior was one of the first brands to use license agreements allowing production of goods under the Dior name in separate production centres, which quickly helped in spreading the brand globally. 

Ethical- main ethical issues within the fashion industry include sweatshops, child labour, the environment, racism, animal cruelty, ageism and body image.

When John Galliano made his anti-semitic remarks, it caused a lot of outrage with many people, this is an example of how Dior kept in touch with the ethics, as the brand needs to keep up with its good reputation.   

Political- Factors effects the organizations in terms of government regulations and legal issues and define both formal and informal rules under which the firm must operate. Examples are 

• Political stability
• Tax policy
• Employment and labor law
• Environmental regulations
• Trade restrictions
• Tariffs etc

Economic- factors affect the business operations and decision making of the organization. For example the predicted recession is preventing the organizations from increasing the workforce . Other examples are:

• Economic growth
• Interest rates
• Inflation rate 

The fashion industry is worth around 26 billion to the Uk economy and provides 797,000 jobs.Currently China is one of the richest countries in the world. If you ask any luxury retailer they would probably say that their most valuable customers are from China. When the financial crisis hit in 2008 it was not easy for the luxury market but Chinas love for expensive, luxury goods made up for the slowing down of European consumption. It is estimated that half of the world's luxury spending will come from the Chinese alone next year. However, although they are spending money on luxury goods it is not in their own country, around two-thirds of luxury products bought by Chinese (and often made in China) are purchased outside the country.The main reason for this is price. Import tariffs and consumption taxes, as well as higher pricing strategies, can increase prices in China to 50% more than a shopper would pay elsewhere.

Christian Dior holds about 8.2% of the global branded fragrances business. Like many brands, a lot of money gets put into advertising and promotion as these are crucial in order to for a brand to grow and increase the productivity.

Social-  factors refer to the cultural and demographic aspects of the environment. For example increase in the health consciousness may affect the demand of the company’s product. Other factors could include:

• Age distribution
• Population growth rate
• Emphasis on safety
• Career attitudes

Economic and political changes, can overlap and fundamentally change how a society thinks. brands can’t hope to predict every possible change, paying attention to the major social factors that drive change can help prepare them to adapt.

Technology- With the fashion industry being a very fast paced industry, that is forever changing, brands need to keep up to date wight the latest technology in order to reach their audience and expand the awareness of their brand. This is making sure that they have an e-commerce sites and making sure they are present on all social media platforms. On February 27, 2013, instagram announced that they had 100 million users, and so social media such as instagram, Facebook, twitter, tumblr has become a great way to advertise. The way that people watch fashion shows has also changed, with many of the shows during fashion week being streamed live for everyone to see. As well as online, technologies in store are developing. Large, high quality digital images and films are being shown in certain stores such as Burberry Regents street and Gucci in Milan. This provides an exciting experience for consumers in the store. 

Dior is very accessible on digital media platforms for example they have:

A facebook page

Website

Twitter page

Youtube Channel

Instagram

Competitive advantage

Although Dior is a successful and influential brand there is still tough competition from other companies which fall in the same market sector. For this reason it is important to maintain a good reputation and the high standards, making sure they have a USP and strong brand identity. Chanel is Diors biggest rival and for the past 4 years Diors perfume ranges have been bigger sellers than Chanel. On the other hand, in terms of handbag sales, Chanel leads with and increase in sales over the past 2 years. They are constantly trying to out do each other, by placing stores next to each other, as well as make-up counters, but competition is just something that brands have to compromise with and work around.

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