Electric Vehicle Industry PESTLE and Porters 5 Forces

This report analyzes the electric vehicle industry using PESTLE and Porters 5 Forces models. It explores the competitive forces and external factors shaping the industry. The report focuses on Volvo cars and their strategies for success.

Electric Vehicle
Industry PESTLE and
Porters 5 Forces

TABLE OF CONTENT
INTRODUCTION.......................................................................................................................................3
TASK 1.......................................................................................................................................................4
Porters 5 forces model.............................................................................................................................4
TASK 2.......................................................................................................................................................7
Pestle analysis:........................................................................................................................................7
CONCLUSION...........................................................................................................................................9
REFERENCES..........................................................................................................................................10

INTRODUCTION
Electric cars industry has been recognized as one of the most advanced, competitive
industry of automobile production where the world has recognized the various benefits
customers can gain from using electric cars. The report explains major forces in shaping business
environment of care manufacturing in recent dynamic business world, assessment of
organizations and the drive which attract customers to vitally reach out to the usage. Volvo cars
is the premium manufacturing company whose business goals are highly integrated with
technology elements, and the high quality standards which are focused . The report explains
external and internal business tools which enable long term goals establishment by company for
high goodwill, strong leverage of brand legacy (Holmberg and Erdemir, 2019).
TASK 1
Global business environment is going through rapid commercialization and innovation
integration through various business models and latest research breakthrough which has enabled
companies to bring high quality outputs. The various forces which have shaped business
environment of care manufacturing companies can be analyzed on ground of functional
knowledge, large expansion and diversification into all corners of world which enable companies
to leverage high production standards. Manufacturing within automobile industry has gone
through various parameters of change with high increase of electric cars due to raising carbon
footprints and various, driving benefits which encourage users all around world. Global
competitive force imposes company to be efficient and strong within internal structure of Volvo
Company where internationalization have been major strategy to present strong place in industry.
Internal potentialities within technology , high skilled employees to produce cost effective
outputs are highly important arenas on which Volvo can built high market share goodwill, high
production standards and the quest to reach large leveraged profitability revenues (Huang, 2019).
Porters 5 forces model
The various forces of competitive growth on which Volvo cars company needs to
strategically think for gaining high optimistic potential customer segments and reach global
business expansion can be understood by Porters 5 forces model

 Threat of rivalry: The global manufacturing automobile industry is facing huge competition
among all companies who are coming up with innovation business models, creativity funnel of
customized tools within cars. Electric cars are highly demanded by customers around world
where companies are highly focusing on bringing cost effective engines , low price strategies
which has given threat to already established automobile market manufacturers around world.
Threat of rivalry within industry can be understood by new companies, brands coming up
within customers market share with high customization and productivity to gain strong research
determinants and cover high leverage goodwill . Volvo cars on some points is lacking within the
scenarios of creativity, as customers social factors of preferences are highly dynamic.
 Threat of new entrants: Volvo company has moderate threat of new entrants which can be
analyzed by the various parameters where new brands, companies are emerging all over world
with cost effective technology. All over world countries have vitally coming up new electric
cars manufacturing companies, with latest research breakthrough and high internationalization
factors to reach untapped countries market areas. Volvo has presented itself as high goodwill
company among all products, which are not only functional efficient but there is strong
presentation of strong customers satisfaction services among organization goals which makes it
highly strong in industry (Rahman, 2019). Threat of entrants is not high due to strong capital
funds form long business legacy establishment, which is highly difficult for any new company
or brand to gain in short term . Volvo cars long term goals are analyzed by the factors that
major focus is giving on goodwill construction, keen insights development and researching
advanced machines to bring on new electric cars.
 Threat of substitutes: Volvo has less threat of substitutes as customers have high commitment
and trust within company services which is result of high quality production standards,
functional efficiency within internal management. Electric cars are not only highly demanded
within Volvo market share but it has created large functional scale of supply due to relative
business goals, production efficiency and materialistic value and worthy optimization of all
resources. Volvo has constructed high goodwill and strong market chain in its position due to
presence around world and large investments done in diversification sectors. There has been no
substitutes of electric cars within quality parameters in comparison to Volvo company , as there
has been high standards of Volvo cars.

 Bargaining power of suppliers : Volvo company due to high capital funds is not dependent on
suppliers and have independent chain around world , which is not only planned with large focus
given to creative business models but also mainly emphasize on rational expansion. There is no
component of bargaining factor within suppliers context as demographically company has large
stores around world, and the easy availability of customers is highly focused for strong position
in market supply. Electric cars manufacturing is done by keeping focus on price factors, large
inclination of prices and supply chains which enables world over reach of all products, services.
Volvo cars are highly strong company as there is strong functional involvement of all chains in
supply within all parts of world, in countries stores and highly gather goodwill among
consumers .
 Bargaining power of customers : Volvo company has very less threat of bargaining power by
customers as the company has large established price rates and goodwill is focuses towards
gaining high potential coverage within customers around world. There is large capital funds
available and no dependence of revenue from customers sale has impacted its business scale on
any margins, where it is researched Volvo cars have loyal customers around world where
promotion components has played an active role in researching the best pathways and keen
market growth. Volvo company has high focus on researching the best ways price strategies,
leverage strong paradigms which are planned on basis of customers affordability range (Song,
Mu and Wu, 2019).
Limitation of theory can be analyzed on the very basis that it lacks clarity of information
for company expansion goals in international markets, where there needs to be given strong
focus on for gaining potentialities to expand with large innovation business models. The theory
lacks structural plans on which further plans shall be formulated and research elements must be
highly planned in accordance with customers technology factors, preferences of creativity and
productivity enhancement.
National aspects: Porter 5 forces explain the various aspects of national demographics expansion
where Volvo Company can generate goodwill among consumers and reach out to potential
market positions, leverage technology integration and bring high profitability goals

International aspects: International globalization is highly important in form of expansion,
diversification into various sector of business as it evolves overall brand image and rationalize
meaning of strong positioning within competitive dynamic business world.
TASK 2
Electric cars are highly demanded by customers around world in many countries due to
high quality standards to reduce carbon footprints in environment, driving and easy usage
benefits and cost savings factors which significantly differentiate from other cars. Globally
electric cars have been recognized as one of the most effective tool and element as substitute to
curb carbon release from cars and other vehicles , where it not only safeguards environment but
also productively elevates company goodwill standards (Nandonde, 2019). The macro
environment gives high competitive force to all companies within industry as world over there
has been strong focus on maintaining new research factors, technology integration and leverage
goodwill standards.
Pestle analysis:
Political factors: Volvo company operations are highly influenced by demographics, political
factors scenarios which are highly important to expand into new countries horizons and
functionally establish competitive place among world. The changing scenarios of political
instability within UK, European countries have impacted company business expansion strategies
and price decisions. There is high focus built on gaining optimum price range factor for stable
market share customer segments as increased tax rates, tariff barriers have largely impacted on
various parameters (Weiss,Zerfass and Helmers, 2019).
Economical factors: The changing economic situations of various countries have largely
impacted business circulation services as Volvo cars are high standards within quality range and
the price factor is an important segment. Disposable incomes of people are largely evolving and
declining which affects people choice to choose cars as their priority, where we can analyze this
as one of the most detrimental challenge to affect business regulations around the world.

Social factors: The various social factors of high preferences of customers to gain customization
within technology standards and functionally innovation with creativity has impacted company
decisions on various margins. Social factors are highly important to gain strong position among
industry and gain customers goodwill around world, as there are large new companies coming up
within new creative services and technological integration.
Technology factors: The macro environment has strong impact on Volvo company operations on
basis of technology grounds as electric cars with better long term sustainability factors are
coming up in companies. Research factor within technology can be enhanced at Volvo Cars
Company by highly investing on various new grounds and functional abilities of training
employees, with latest advanced skills and production abilities. Technology factors efficiency
highly differentiates companies on various grounds as customers look forward to innovation,
creativity in delivery of products and services which are highly functional and research must be
built to bring reformative changes in company products (Patt, Weyrich and van Vliet, 2019).
Legal factors: Legal compliance of electronic cars companies are highly important area where
there are strong innovative steps taken following of which enables long term access in gaining
strong customer satisfaction. Volvo cars for expansion into UK, European countries have to
strictly implement all legal rules; compliance of these legal adherences not only builds company
goodwill but also productively enhances their working structures. Legal compliance is highly
important factor which restructures the brand positioning among company , which builds
company brand value among other competitors and functionally being large lubrication in their
working efficiency. Volvo Company needs to ethically serve all employees with high ethical
practices and maintain strong parameters of workforce, which will eliminate any unethical
working and legally make functional efficiency. There is legally various business services and
duties, which needs to be conducted by companies to perform strong duties towards society and
overall industry.
Environment factors: The electric cars produced shall be built with high focus on environmental
factors where the world is highly regarding usage of electric cars, for eliminating the carbon
footprint in major parts of world. Volvo cars for establishing strong place among world
economies and companies in bringing out high quality production standards to use cost effective
technology and resources which are not only environmental friendly but also highly productive

in gaining customers confidence among world. Environmental factors are not structured relevant
within the goals of company standards to bring electric cars of latest technology to serve
customers around the world , potentially bring eco friendly business strategies and leverage
determinants in occupying strong place among industry (Achinas, Achinas, and Euverink, 2019).
National aspects: PESTLE explain the various aspects of national demographics expansion
where Volvo cars Company can generate goodwill among consumers and reach out to potential
market positions, leverage technology integration and bring high profitability goals
International aspects: International globalization is highly important in form of expansion,
diversification into various sector of business as it evolves overall brand image and rationalize
meaning of strong positioning within competitive dynamic business world (Christodoulou And
Cullinane, 2019).
CONCLUSION
The report has concluded various parameters of business functional abilities within Volva
cars company in bringing new electric cars., manufacturing innovative models with high
creativity and researching best optimum strategies. The report has concluded business models of
Pestle, Porter 5 forces for reaching the various strategies for expansion into international markets
and researching new advanced technology standards for gaining high goodwill among customers
around world. Global automobile industry has been facing huge changes due to demographical
expansion, targets of development and changing scenarios of business development models
which effectively reach out to technology savvy outputs, eco friendly vehicles and highly
customized on basis on customer preferences.

REFERENCES
Books and Journals
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SWOT-PEST-Michael Porter's Five Forces Model--Taking SF Express as an
Example. In 2nd International Symposium on Social Science and Management
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Patt, A., Weyrich, P. and van Vliet, O., 2019. Availability of private charging infrastructure
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Rahman, M. S., 2019. An Analysis of Smart-Phone Industry in Bangladesh Using Porter’s Five
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Stores from the Perspective of Chain Operation——Take Jixiang Wonton Chain
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