Environmental Analysis of Automobile Industry

This study provides a detailed analysis of the global business environment, SWOT analysis, PESTLE analysis, Porter's Five Competitive Forces Analysis, and sustainability strategy of Aston Martin in the automobile industry. It discusses the internal and external factors that impact the productivity of the company.

The Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Overview of the company............................................................................................................3
SWOT analysis:...........................................................................................................................4
PESTLE ANALYSIS..................................................................................................................5
Aston Martin Porter’s Five Competitive Forces Analysis...........................................................6
Sustainability Strategy :...............................................................................................................7
CONCLUSION................................................................................................................................8
REFERNCES...................................................................................................................................8
Books and Journal........................................................................................................................8

INTRODUCTION
The automobile industry is in the business of creating and marketing self-propelled
vehicles, such as passenger cars, lorries, farm machinery, and other commercial trucks. Many
critical industrial items, such as steel, are now purchased in significant quantities by the
automobile sectorThis report is going to analyse about the global business environment that can
be described as the surroundings in different countries with different factors that influence
decision-making and also influence their resources utilisation and the capabilities of the
organisation. For every organisation the importance of global business environment helps them
to improve their capabilities. It also improve the standards of living and strengthening That
economies of all the countries. Apart from this, this report going to consider Aston Martin
Company which is a British independent manufacturing company of luxury sports car and grand
tourers. Apart from this, this report also going to evaluate the challenges of their internal as well
as the external business environment and also going to consider different kind of a strategies in
order to achieve their goals and improve their core values on sustainability.
MAIN BODY
Overview of the company
Aston Martin Lagonda is a luxury sports car and grand tourer manufacturer based in the
United Kingdom. Lionel Martin and Robert Bamfor founded its precursor in 1913, 15 January.
Modern Aston Martins are equally as dependable as other high-end luxury vehicles. Over the
past two decades, the business has tried to improve durability, as older Aston Martins were not
regarded trustworthy at all. In order to improve their capabilities as well is there efficiency this
report will going to work on the factors that create impact on the organisation capabilities. They
have a sizable market all over the world, and every vehicle enthusiast wishes to own one at least
once in their lives. They've hired around 1,850 people all throughout the world. In 2016, they
brought in 593.5 million pounds in revenue. In order to analyse the internal as well as external
factors which is great impact on the organisation productivity There is a few strategies as well as
few frameworks that are adopted and which are below mentioned

SWOT analysis:
Strength
 Aston Martin has a sizable design and
manufacturing team. Every automobile
they release is strong, faultless, and
particularly prized after. Most people
choose Aston Martins because of its
power, quality, and endurance.
 Aston Martins are out of reach for the
vast majority of people. Everything
went smoothly, and the firm was able
to successfully advertise the product to
the wealthy. They've chosen this
strategy to increase income and
purchase value.
 Aston Martin has a global presence in
50 nations. They're additionally looking
at several forms of vehicles, including
speedboats, bicycles, and submarines,
as well as real estate companies. This
makes them more approachable across
the board.
Weaknesses
 Aston Martin has a smaller economy
than similar enterprises: Aston Martin
has a smaller economy than comparable
organizations. This is due to the fact
that they have never sought to promote
to a market apart from their high end
market. They will have to do it quickly
if they don't want a lot more
competition.
 Limited product range: At any one
time, they have few different models,
restricting the consumer's alternatives.
This is understandable given that they
work with the best goods and
specialists on the market. They want
everything they do to be the best it can
be for their loyal clientele.
Opportunities
 • Aston Martin's entry into the
mainstream market is long overdue.
They may have a sizable fanbase, but
the general public requires a taste of
their innovations. Individuals will only
Threat
 Gasoline prices are rising: The cost of
oil goods is rising. The feasibility of
hybrid cars should be investigated by
Aston Martin.
 Tough Competition: The firm will face

be able to buy mid-range items, which
is the only way it will be possible.
 • Aston Martin makes high-end items
that aren't intended to be used every
day. They may, however, put their
technology abilities to good use by
developing items that help people
obtain better automobiles. This will
also help them combat a number of
mass-market manufacturers all around
the world.
 An overseas consumer will have
trouble finding servicing for an Aston
Martin. They usually have to wait
months for repairs to be completed on
their automobiles. This is an area on
which the company should concentrate
its efforts.
off against Bentley, Porsche, Jaguar,
and other high-end brands. They'll have
to become more active in the market to
maintain a competitive advantage.
PESTLE ANALYSIS
This is the strategy that supports the company to analyse the external factors which create
impact on the efficiency of the company and also create impact on the productivity of the
company. The pestle analysis of Aston Martin is below mentioned:
Political Factor: In United Kingdom there are several stakeholders that support the company to
improve the efficiency of the company. In the country some other stakeholders like non-
government companies, protest and pressure groups and many more that plays an important role
towards the formulation of the strategies. It is become very important for the Aston martin to
collaborate with these kinds of company so that the company can become capable to contribute
towards the community goals and objectives. As the country United Kingdom has formulated

new policies so is helps the company enhance the investment sentiments in the consumer cyclical
sector.
Economic Factor: According to an article in The Guardian, the financial meltdown has had a
detrimental influence on the UK automobile industry. As in the United Kingdom availability of
the core infrastructure has been improved and enhanced and this will helps the company to
improve the business environment.
Social Factor: As in United Kingdom the media outlets plays an very important role and social
media are quickly and rapidly growing and this will helps the company to improve the market
position with their services and product.
Technological Factor: There are different kind of factors that create impact on the company.
Some of technological factors are innovation in goods and services that are provided by the
company, innovation in the customer services, access to mobile phones and many more. These
are the factors that create impact on the company.
Legal factor: Legal factors plays an important and critical role in context of automobile
company. It is become very important for the company consider different factors in order to enter
into the international market and that is data protection laws, copyright laws, discrimination
laws, system of justice and many more.
Environmental Factor: from past few years there are some environmental and sustainability
factors that become very important and critical for the company. There are few factors like
improving and enhancing concentrate on the sustainability, climate change, some insurance
policies, safe waste disposal and many more. As for Aston Martin renewable technology is
become much interesting area.
Aston Martin Porter’s Five Competitive Forces Analysis
Michael E Porter established Porter's five competitiveness model, which shelters graceful on the
possibilities and dangers that must be represent in company plan. Dealer negotiating power,

customer negotiating authority, threats of new entrants, alternates, and competitive rivalry are the
five competitive forces. In difficult economic times, the luxury car industry is very competitive.
All major corporations have strong brand names, which provide them a competitive advantage.
The fact that Aston Martin is a very well performance and premium automobile manufacturer
gives it an edge in this regard.
Supplier bargaining power: The supplier and manufacturing segments of the UK automobile
industry are separated. There are around 2,600 component makers in the UK, ranging from
global companies to small and midsize enterprises,according to UK government figures. They
bring approximately £4.5 billion in value to the economy and employment over 115,000 people.
In view of this, supplier bargaining power is limited due to competition within the industry.
Suppliers do, however, have substantial power due to the existence of industry representatives.
Component and car makers are both in a stable equilibrium.
Competition: With so many modern sports vehicles crowding the fast lane, shoppers may see
deals. Car makers are producing all of these super duper vehicles since there is so much
competition pressuring their revenues at the margins. Many companies dominate this market, and
Aston Martin must still rank among some of the 10 leading luxury automobile brands.
Bargaining power of customers: There is no industry where the phrase "customer is king" is
more relevant than this one. In a recession, this is the high-end luxury sector, where clients have
a wide range of options to pick from. The consumers perceive the immense authority.
Threat of Substitute: The premium car segment is a optimal instead of a inevitability. Slightly
car valued under GBP 20,000 will encounter the slightest obligation. The characteristic aspect,
on the other hand, is purchasers' insights of automobile trademarks. As a result, high-end luxury
car companies such as Lamborghini Gallardo compete, apparently satisfying the similar need.
Threat of new entrants: Because the initial investment is so substantial, future entrants provide
essentially no threat.
Sustainability Strategy :
The organisation is working on the sustainability strategies in order to achieve their goals
and objectives. The organisation is conducting different kind of combat programs and walking

towards the integrating sustainability so that they can deliver stakeholders will you buy ethical
and sustainable excellence and improve the productivity of their company in order to achieve
their goals and objectives. Aston Martin Lagonda joined the United Nations Global
Responsibility programme in 2014, marking the company's first move toward integrating
sustainability into its operations. This dedication is still in place today, and it has helped in the
creation of an integrated and holistic plan for the company focused on the Objectives (SDGs).
The plan intends to provide long-term competitive advantage to stakeholders by delivering
ethical and sustainable excellence. They establish worldwide corporate responsibility objectives
that are implemented locally. these are included into diverse and inclusive goals and initiatives,
as well as professional behaviour, safety, and the environmental.
These kinds of activities and a strategy support the organisation to provide stakeholders
with you by considering ethical activities in the organisation and create long-term competitive
advantages so that the company can improve their productivity and improve their brand image in
the marketplace. Apart from this the organisation has a high environmental sustainability goals
that focusing on the reducing carbon emissions, this is due single stage, increasing recycling,
reducing water consumption so that the company can focusing on the environmental
sustainability and satisfy the requirements of the community in order to achieve their goals and
objectives and it brings more opportunities in the marketplace.
CONCLUSION
From the above mentioned report it has been concluded that, in order mobile industry
create a self propelled as well as different kind of vehicles and they have a huge comp petition
level in the marketplace. Apart from this as this report discussed about the global business
environment and also discuss about the external and internal factors which create impact on the
organisation. In order to analyse the internal factors like strength of the organisation,
Opportunities, threat, weaknesses This report is considered a sport analysis that helps there
company to analyse their weaknesses and strengths and work on it in order to get more
competitive advantages. Apart from this, this report considered pestle analysis that Help is

organisation to analyse about the political factors, economical factors, social factors,
technological factors legal factors and many more so that the company can identify their external
factors and work on it in an appropriate manner. In order to analyse their competitors
sustainability in the marketplace this report considered porters five competitive forces model that
helps them to analyse their bargaining power of their suppliers, consumers and also analyse the
threat of the new market Place.
REFERNCES
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