Understanding Chinese Market Preferences
Added on 2019-09-24
8 Pages1981 Words286 Views
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ARTICLE WORK
Table of ContentsINTRODUCTION...........................................................................................................................1MAIN BODY..................................................................................................................................1Political analysis..........................................................................................................................1Political controversies that have affected the brand................................................................1Government rules and regulations...........................................................................................1Political instability...................................................................................................................1Economical analysis....................................................................................................................2Global economic recession......................................................................................................2Strength of dollars in market...................................................................................................2Social analysis.............................................................................................................................2Change in tastes and preference..............................................................................................2Technological analysis.................................................................................................................3Digital technology...................................................................................................................3Environmental analysis................................................................................................................4Following environmental regulations......................................................................................4Legal analysis..............................................................................................................................4Employment law......................................................................................................................4CONCLUSION................................................................................................................................5REFERENCE..................................................................................................................................6
INTRODUCTIONPESTEL analysis is the macro-environmental factor which gives an idea about theexternal factors which will have a direct impact on the strategy as well as the operation of theenterprise (Nurmi & Niemelä, 2018). This report will showcase the PESTEL analysis of Ikea.Ikea is the Swedish based multinational company that design as well as sell ready to usefurniture. The firm has its operation present in many countries and as a result of this, the factorslike Political, economical, social and technological, etc will have a significant impact on thecompany. In this report, a description will be given about the PESTEL factors which will have animpact on Ikea.MAIN BODYPolitical analysisPolitical controversies that have affected the brandIn the recent past, political controversies have caused a significant impact on the overalloperation of the brand. In the year 2012, the firm has accepted some of its furniture which wasmanufactured by East Germany political prisoners. The firm had apologized for the same, but therespective thing had caused a major impact on its global brand image. Due to this, the overallsales of the company were also dropped.Government rules and regulationsThe operation of Ikea is also affected by the rules and regulations which are being framedby the political government of the nation. Following the given context, it can be said that in thepast few years, India and China have taken a step in terms of lowering different political barriersto entry for foreign brands. It is because of the given aspect only; many international brands havetaken steps for expanding their operation in the respective market. For example, Red tape is amajor matter of concern for the brand like Ikea. However, with the help of such type of smoothpolicy, Ikea can expand its presence in the respective market. This will have a direct impact onthe overall sales of the company in an effectual manner (González Ortega and et.al., 2019).1
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