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Pestle Analysis Of The Car Industry

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Added on  2021-02-21

Pestle Analysis Of The Car Industry

   Added on 2021-02-21

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ENVIRONMENTAL ANALYSIS OFAN INDUSTRY
Pestle Analysis Of The Car Industry_1
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................2TASK ..............................................................................................................................................2A) PESTEL analysis of car manufacturing industry....................................................................2B) Porter's 5 force of Volvo.........................................................................................................5CONCLUSION ...............................................................................................................................7REFERENCES ...............................................................................................................................91
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INTRODUCTIONEnvironmental analysis is an essential factor companies need to keep in mind inmanufacturing their products(Victor, 2017). It is a process of identifying external and internalfactors which affect organisation performance. Environmental analysis benefits in identifyingvarious opportunities and threats of the company. It refers to the process of scanning, observing,analysing and predicting business situations. It is beneficial for management of company indecision making and expanding the business in the are where environment is favourable. Presentreport is based on Volvo cars, it is a premium car maker. Company want to introduce electriccars in Europe. In the report PESTEL analysis and porter's five force analysis is done so thatcompany makes strategic decisions.TASK A) PESTEL analysis of car manufacturing industryVolvo cars want to enter in Europe by introducing electric cars and destroying themarkets of fuel cars. Company want electrification as its core business. There is a great scope ofelectrification in the future economy. Here is a PESTEL analysis which will help company inanalyzing and decision making (Grant, 2016).Political factor: Automotive industry is very fast growing company and has growncontinuously over a period of time. Cost of automobiles is increasing and common man isnot able to afford the cars. Political instability in the economy also affects the company inexpanding its business. As Volvo company want to introduce electrification in theautomobile industry, there is a big support of government in introducing it. Politicalfactors are positive through which company easily enter in Europe. There is a nationalsupport for electric vehicles like government is providing subsidies to customers who arepurchasing electric vehicles (Electric vehicle in Europe, 2016). They are exempted fromtax, higher authorities has increased tax of fossil fuel which have indirectly made electricvehicles attractive. Local government has also taken various steps in promoting electricvehicles such as free parking for electric vehicles, opening of individual lane for theparking of electric vehicles, access in restricted are because of pollution, tax exemptionand discounts. Government is putting its best effort and supporting electrification throughgiving funds to the companies. There is a huge pressure by government on automotiveindustry in order to control pollution and thus, in future there will be increase in demand2
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