Environmental Analysis of an Industry

This report analyzes the impact of COVID-19 on Land Rover, a luxury car manufacturer, using PESTLE analysis and Porter's five force model. It covers political, economic, social, technological, legal, and environmental factors affecting the industry. The report suggests survival and success factors for the industry.

Environmental Analysis of an
industry

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Analyse the impact of the pandemic on the industry and develop survival and success factors
for the industry............................................................................................................................3
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Environmental Analysis is base d upon those aspects that is used for making examination
done over internal and external factors that has been used in order to created influence over
performance of an organization. These factors together form influence over an organization
which makes various process of an organization effected. This analysis helps in making
organization achieved its goals and objectives with proper clearance. Also analysis works over
business environment making it more effective in nature. The report is based upon PESTLE
analysis that has been used in order to make development done of external factors leading upon
performing all actions leading upon improving various perspective of an organization or
industry. Also the report has been covering PESTLE in relation over Land Rover which is an
auto-mobile organization that produces luxury cars.This has been founded by British Leyland in
1978 and having headquarters in Solihull, West Midlands, England. Further, impact of COVID
19 understood with external factors.
MAIN BODY
Analyse the impact of the pandemic on the industry and develop survival and success factors for
the industry.
In order to understand about the impact of COVID on an automotive industry an
organization has been taken that is Land Rover. In order to understand the effect PESTLE
analysis is done which is that kind of analysis that has been used in order to understand about
political, social, economic, technological, environmental and legal factor which can impact
organization like Land Rover.(Gholamian, Zare and Mousavi, 2016) Political Factor: These are
those factors which is based upon policies that has been formed by government and can impact
organizations growth. In this major affects is created through political stability and friendly
business environment that has been helping an organization to predict about growing trends
within market. This is based over influencing investors for trusting within the organization. It has
made Land Rover present their business in various countries making potential factors differ for
each and every nation. Instability in the the Global political environment affect the the growth
of organization that has been observed in relation to COVID 19. This pandemic cause various
kinds of rigid policies formed which made global chain of trading affected as it makes

organizations like Land Rover face more difficulties in conducting its operations at global level.
Changing Policies: Constant changes in policies has impacted business performance which is
leading upon making increase within uncertainty within business environment of land Rover.
This can be observed in the time of COVID 19 that Land Rover was not able to fully function
due to polices formed by government. Thus the organization was forced to follow political
scenario as per COVID 19 which makes changes within strategies according to government
priories. This make organization like Land Rover adjust its policies as per rules and regulations
formed in the time of COVID 19. Also during COVID 19 Bureaucracy and corruption
increased which made organization like Land Rovers face great difficulties in performing its
operations. This makes operations of organization regarding government authorities hinders in
drastic level. The business environment get highly unpredictable for a Land Rover because of
high corruption level and week law enforcement in several countries. Corruption of back to the
several of business operations such as a licensing contracting and many more.(Kawde, Baig and
Sajid, 2016.). Economic factor: These are those factors which is based upon various aspects that
is based upon unemployment, import, export rate, deflation and inflation rate used by an
organization in its economic growth. Economic Cycle Stage in this performance of the
organization has direct impact upon making economic development within a country possible.
Through developing economy growth opportunities has been generated for Land Rover and with
this industry life cycle stage has its own importance. A well developed structure implies
business environment and increases the growth potential of the gold industry in the specific
country. It has been affected drastically within CODVID 19 as product circulation has hindered
which made Land Rover face loss within sales and disturbed its customer base. Inflation Rate:
These are the capabilities of Land Rover making suppuration done regarding the terms and
strategies which is base upon growth of an organization like LAND Rover which is controlled
by GDP. The Higher GDP makes higher purchasing power of customers. Interest rate influence
the borrowing power and attitude towards the investment which leads to the growth opportunities
of Land Rover developed effectively. In the time of COVID 19 exchange rate got impacted
which makes profitability generated that directly affected business for Land Rover. Social
Factors: These are those factors that is based upon various aspects like culture, taste and trends
of customer. Age and gender role: It has been founded that needs and demand of customers has
been affected in relation over age and gender. This makes people of various groups have

different kinds of choices. The land Rovers is required to make focus developed upon various
segments and is able to target young generation boys get attracted over Land Rover. In the time
of COVID 19 an marketing research is conducted that makes analysis about demand of car. It
showed that sales have decreased due to COVID as differ operations were not performed
effectively. Low carbon footprints and use of renewable energy:
This has been made sure that customers has been looking for new innovative ideas over change
within existing products(Martín-Esteban, 2016). Through such perspective Land Rover in the
time of COVID 19 used eco friendly policies which makes customers attraction possible in
effective manner over cars sold by Land Rover. Technological factor: This is one of the most
effective factor which helps an organization deal over various kinds of aspects that make day to
day technological changes raking place. Under it technological innovation and development
level: This is based upon bringing technological changeable within cars that has been produced
by LAND ROVER. So, the management has been working over CNG and electric cars model.
Also the technicality with innovation has brought several changes taking place within an
organization that has resulting with higher demand over cars in market. It has been growing with
the technologies in automobile sector making high effect created upon working performance of
Land Rover. Thus advancement of technology is required to be done making costing of product
decided. In the time of COVID 19 innovation has been developed which makes e commerce
increased effectively (Ott, 2018). Research and development on technology:This is done by
spending money over research and development that makes enhancement done over process
resulting in making technological capabilities developed in effective manner. In the time of
COVID 19 it has been founded that various kinds of development has been taking place that
makes organizations online process improved with perfection. Legal factor: These are the
factors that is based upon various perspective which is related to laws and regulations that has
been formed required to be followed by an organization. In this factors all kinds of laws
regarding various aspects is covered which made organization like Land Rover follow rules an
regulations. In the time of COVID 19 new laws has been formed which makes organizations
like Land Rover follow instructions in relation to COVID 19.Since these laws were applicable
strictly made organization face difficulties in performing its functions within more effectiveness.
Environment factor: These factors are based upon making organization deal upon aspects that is
related to environmental changes or policies that has to be followed by an organization. In this

factors various aspects like environment policies has been covered. During the time of COVID
19 these factors were followed properly which makes environment protection done in more
effective manner. This also attracted large customer based for Land Rover (Mitra, Patnaik and
Kebbekus, 2018). Another strategy that has been used is Porter's five force determines company's
competition to sustain in the industry and make strategies according to the targeted area to
maximise profit. It has been discussed in relation over COVID 19 Competition in the industry:
Competition is the number of competitive company's with similar targeted areas, larger the
competition make the power lesser of the organisation in the industry. Land Rover is specialized
for auto mobiles and known for its luxury and new innovative technologies, it has less number of
competition in industry because some company's provide one or two versions of cars. The major
competitors are Chevrolet, Hyundai and Volkswagen. In the time of COVID 19 innovation was
used by Land Rover in its working process which made it stay ahead of its competitors. New
Entrants into an industry: When any new company enters in the industry it takes less time and
money but it become more powerful and changes the position of existing company. Land Rover
can not be affected much as being the top most auto mobile company if any new company enters
Land Rover stay benefited from the economy of scale which an new company will earn with
time and by exceeding their business. But Chinese carmaker such Nio, Geely, Xpeng can
become a threat to Land Rover . Recently the biggest threat is coming from existing companies
such as GM, Audi, Ford. In the time of COVID 19 no new entrants were seen which made Land
Rover maintain dominance within market (Patnaik, 2017). Power of suppliers: Suppliers can
make up the cost of inputs in an company, it depends on the suppliers to put unique inputs to the
company. Land Rover has some suppliers who sell the materials and work as a third party,
suppliers usually affect the company by moderate supply level and moderate size of suppliers but
Land Rover is not fully dependent on suppliers as is based on innovations and technologies
more, but now a days Land Rover is affecting by moderate supply level which give powers to the
suppliers in the time of COVID 19(Yang and You, 2017). Power of customers: It depends on
how much customers or buyers does the company has, a smaller and powerful client base depicts
the power of negotiating with prices and powerful deals. In Land Rover due to low shifting
power reduces the barrier for Land Rover customers to buy auto mobiles from other providers ,
and due to low volume of purchase it militate the influence of Land Rover customers. The
switching of buyers and sellers is difficult at global level in the pandemic situation. Threat of

substitute: Substitute products and services are within the company which can earn more profit
comparative to another goods and can reduce the power of selling and lower the requirement of
product in the market. For example the electric car is itself a substitute to gasoline and fuel based
cars. Land Rover has low substituting power as it works in latest technology which new
innovations. This helped in Land Rover in COVID 19
CONCLUSION
From the above discussion it has been marked out that environmental analysis is that
process by which various factors of an organization is analysed effectively. This make an
organization understand about various perspective in relation to market. Further, it has helped in
making understanding developed about Land Rover by performing PESTLE analysis and using
porter's five force model.

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