Electric Vehicles: PESTEL Analysis, Porter Five Forces Model, and International Trade

ELECTRIC
VEHICLES

Table of Contents
INTRODUCTION.................................................................................................................................3
Explain PESTEL environment factors at work in industry in relevance with case study...................3
Discuss knowledge and understanding of theory...............................................................................4
Provide knowledge of national & international aspects.....................................................................4
Describe understanding of competitive environment and explain Porter five forces framework.......5
Discussion of criticism/ limitations of theory....................................................................................6
Examine knowledge of national and international aspects.................................................................6
CONCLUSION.....................................................................................................................................7
REFERENCES......................................................................................................................................8
Books & Journal:...............................................................................................................................8

INTRODUCTION
Automobile industry has drastically changed over a period of time by bringing nee
innovation and invention to the industry. Volvo, manufacturing company headquartered in
Sweden. Firm deals in trucks, equipment, technology etc. with strong base of network
distribution channel. Demand of customers and market situations are dynamic in nature. In
this dynamic market, electric vehicles are in emerging trend. Due to rise in competition,
strategies as well as tactics are being developed by entities to survive in market. In this
modern time, most of the company are now introducing electrified cars into industry. This
report includes PESTEL Analysis, knowledge and understanding of theory by using Porter
Five forces model & national and international aspects.
Explain PESTEL environment factors at work in industry in relevance with case study
PESTEL Analysis- It is a tool which is used by organisation to track and monitor the
external environmental which affects the business and its functions as well as operation. It
includes several elements which are described below-
Political factors- In this element, it comprises of environmental and labour law, trade
restrictions, political stability etc. Such type of elements affects the business at depth. In
relation with Volvo, spending on infrastructure assists firm to increase sales of commercial
vehicles (Widmer, 2017).
Economic factor- These are those which involves inflation & deflation rate, wages
etc. Such elements slow down the growth of business and enterprise depending upon the
effects. In developed country like US, as disposable income of citizen is high it becomes easy
for Volvo to acquire skilled workforce for their operations and carrying out business
smoothly as well as effectively (Mi, 2017)
Social Factors- Further comes social component in which standard of living, income,
culture region etc. are involved. It is very crucial to run business & provide product according
to customers’ needs as well as requirements. Not every country has same culture or region for
example in US; people are sensitive to their cars because they use cars mostly for mobility.
Also, fuel is expensive which is not affordable by every individual & which depicts it is
challenging task for Volvo to meet all requirements to run their activities.
Technological- Many enterprises focused on adopting new technologies to their
business. For example- Toyota & CMC are using new equipment and systems in their cars in
Japan. So, to enhance profit of firm Volvo also has to be more innovative towards their
product so that they compete with rivals easily in market. Because now everyone in industries
are adopting electric vehicles to save environment from pollution.