Environmental Analysis of an Industry

This report provides an analysis of the electric automobile sector, focusing on the environmental impact and the need for its development. It also discusses how the industry has changed over time and explores various business opportunities in the market.

Environmental
Analysis of an
industry

Table of Contents
Table Of Contents............................................................................................................................2
Introduction......................................................................................................................................3
INTRODUCTION...........................................................................................................................3
TASK A...........................................................................................................................................3
TASK 2............................................................................................................................................6
CONCLUSION................................................................................................................................9
Reference.......................................................................................................................................10

Introduction
INTRODUCTION
Nowadays the electric car has become the major source of achieving the sustainable
development in world. There is growing popularity of electric vehicle as the clear and more
efficient vehicle which will control the emission of carbon in environment (Cantrill and Oravec,
2015). This is one of the major technological development of automobile industry in last few
decades.
The automobile industry is the global multimillionaire industry with many brands that are
competing with each other for increasing their current market share in economy. The report is in
context with the development of technology in Volvo company by up gradation of vehicle engine
by electrification. Volvo car company is the premium car make have with an idea of replacement
of internal combustion engine by electrification as of its core of there future business. In this
report there will environment analysis of electric automobile sector and need of there
development for future generation.
TASK A.
In the 21 at century there is huge demand of technological development of automotive
industry with innovation as to achieve the sustainable goals of organization (Xuan and Yue,
2017). Volvo has come up with an idea of replacement of internal combustion engine by
electrification of engine. From the 21st century there is development of electric cars in sector as
to have sustainable development of through technological innovation and image of conventional
vehicle. The company has taken the decision of significant move to accept the concept of
electrification. This turns out to be a new chapter in automotive industry. Volvo has identified
the continuous increase in demand of electric cars by customers respond to their present and
future needs(Wang, Tal and Fang, 2017. Thus, it turned out too obligatory to identify and
address the most important external factors that are effecting business environment.
Political Factor
In the political factor there is identification of government impact on business as they are
main societal force for performance and revenue of company as it can be limit due to change in
trade policies. The following external political factors are important for development of
automotive industry-

Government used to provide incentives in development of electric automobiles.
For the goal of sustainable development of country there are new global trade development.
More of the political stability in United Kingdom turn out to be benefit to automobile sector.
Volvo has opportunities as strengthen there financial position of the company as government is
providing incentive in electrification of automobiles(Wan, Sperling and Wang, 2015). There is
sustainable goal of company to reduce the carbon footprints so there are various new global trade
development are signed which will turn out as correct timer for Volvo to expand the operation
globally. On other hand UK has stable government so company should implement competitive
and intensive growth strategies to attract more and more customers. At the time of EU
referendum there was a great instability in g political environment of country.
Economic Factor
In economic factor there are major focus on condition with inclusion of market size, trade
level, currency value and many more which can have impact on automobile industry. The
economical factor can be decrease in cost of batteries along with decrease in cost of renewable
energy. Deceases in cost of batteries and use of renewable source turned market to be attractive
for Volvo(.Narins, 2017). The country have economic instability which can turned out as threat
to Volvo financial performance expansion of business operation globally.
Socio-Cultural Factor.
The social and cultural factor there will be major impact on employees, customer and
investors in development of automobile sector. The business mainly aligns with trends or
demands of target market or customers. Volvo will try to maximize benefit through the
implementation of different strategies which will help in grabbing the potential customer from
market. Nowadays, the population of country has more acceptance of low carbon lifestyle and
preference to use of renewable source of energy. There is continuous improvement in
distribution of income in developing market so the potential buyers of Volvo can move to more
expensive products.
Technological factor
This part of pestle is use to analysis the availability of technological developed in the
country which can have impact on growth of company. The technological change in Volvo of
electrification in cars from internal combustion engine need automotive solution and
technological advancement. If the country have up gradation in technology, it can be turns out to

be cost effective and efficient for the company's stability and expansion in global market. In UK
there is high rate of technological change along with increase level of business automation. The
population is aware of online mobile system which can be turned out to be opportunities for
Volvo as company can easily integrate system in their automobiles(Cherubini, Iasevoli and
Michelini, 2015)). The country is having high level of technological change which can be turned
as opportunities in providing latest and successful products to customer. the company is also
facing the threat of obsolescence of technology which time due to rapid improvement of
technology.
Ecological Factor
This part is concern about the environmental condition which have impact on companies'
expansion process. The ecological factors change in climate. The country is having more of
environmental expansion program along with rising standards on proper waste disposal
management. Volvo have chance to have promotion if their electrified engine cars as there is
major concern related to climate change, expansion of environmental program and high
standards of management in waste disposal. The change of Volvo will be considered suitable in
achieving the goals of sustainability and be the one for producing environmental friendly
products.
Legal factor
Legal factors help in shaping the managerial decision and development of business.
There are many of legal constraint in country which limits the development of company. For the
formation corporate strategy of Volvo, the company should pay more attention on patent
protection of product at time of Internationale expansion(Ortar and Ryghaug, 2019). The country
have regulation regarding energy consumption regulation which turns out to be opportunities for
Volvo as the company is developing electric vehicle according to the goals of global
development. The law of BREXIT is creating problem in expansion of the company in the global
business for the longer time.
Explain how the
industry has changed
Automobile industry is nowadays approaching to pivotal moment as there is shift in
electrified power trains majorly demand in public, government policies and new entrants in the
competitive market. The electrification of cars has been turned out to be potentially bigger

change in automotive sector. Previously, the automobile industry was totally dependent on non-
renewable source of energy. There is high need to reduce the carbon foot prints on global
environment as to develop the vehicle with zero emission.
There is major growth and development of this sector from 19th centuries which has turns to
became an important part in economy of world in term of revenue. Due to rise in the issue in the
issue of global warming there is more awareness among the people of reducing carbon foot
prints on environment and achieve the sustainable development. There should be less use of the
renewable resources by searching out the alternative to develops the goal of sustainability. The
major impact was on automotive industry as major consumption of renewable resource were
used in combustion of engine to operate the vehicle. There were more increasing in demand of
electric cars in public, government policies and new entrants in the competitive market. With the
increase in demand of electric and threat of getting obsolete and loose the company potential
customer company has accepted the production of electric to compete the challenging
environment for survival.
Critical analysis
According to the company has identified the various advantage in manufacturing electric
car as it brings strength to the financial position of the company as government is providing
incentive in electrification of automobiles. However, there are many of trade development which
give the company the opportunities to grab its potential customer by implementing the
competitive and intensive growth strategies along with price penetration to gain competitive
advantage. The Victor (2017)argued that there is economic instability which can turned out as
threat to Volvo financial performance and expansion of business operation globally. The electric
car are facing challenges in covering the range of 75 miles at single charge which will affect the
production and demand in longer run. However, energy consumption regulation which turns out
to be opportunities for Volvo as the company is developing electric vehicle according to the
goals of global development. According to Ciambrone (2018) economic instability which can
turned out as threat to Volvo financial performance and expansion of business operation
globally.

TASK 2
There are many business opportunities that are available with development of electric cars in the
market. The market of electric car has the market size of more that 105 million in years of 2018
and 900 million by the year of 2025 having the CAGR of 34% in forecast period. There is
variety of category segmented into 4 main electric vehicle type that is hybrid electric vehicle,
battery electric vehicle and fuel cell electric vehicle. The business of electric car is nowadays
been the biggest opportunities in forearming years for growth of entrepreneur. There is not only
the development of electric car industry but many other industries such as mining, aluminum
have simultaneously growth. There are some opportunities that are available with the biggest
electric acre revolutionary development. The opportunities are-
1. EV Charging station.
There is wide development of commercially available electric car. There will be high level
projected increase in electric charging station by 2 million by 2020. This can be identified as
huge opportunity. The biggest hurdle in development of this business opportunities is lack of
infrastructure. The charging points can be setup in hotels, corporate offices, shopping malls and
many of public services.
2. Training service for maintenance of electric cars.
There is requirement of knowledge regarding installation of charging station to give training for
the maintenance of electric cars (Ciambrone (2018)) There are multiple ways through which this
business can be performed such as website, arrange seminars and creation of you tube channels.
Certified programs available in reputed organization like charge point, electric vehicle
infrastructure training program(EVITP) and many more.
3. EV's management app
There can be creation of the app for management of electric vehicle. The requirement of app is
because it is difficult to mange electric car as I us different from gas run vehicle. There are many
KPI's such as Bluetooth adapters and many more technical aspects.
4. EV's connectors.
There is global development of electric car in world. They will give mores access to electric
vehicle supply equipment and market of spare parts. There can be development of online store
for selling of equipment's.
5. Self drive electric car rentals

This is quite simple to understand. It is service which already exist in market where you can have
car on rent and drive by yourself(.Grant, 2016.). But the model will change with implementation
of electric car. The advantage of this strategy will be cost of running will be low. The
disadvantage of this will lack of charging infrastructure development. There could be expectation
of reduction in cost by 30%
6. Spare part manufacturing
The growing market for electric vehicle will also grow the demand of spare parts (Victor, 2017).
This idea is nowadays become a global trend like having the manufacturing of chargers,
controllers, connectors and drive train components that will turn out to be good opportunities.
7. Franchising.-
It is the most common business model from the remaining opportunities such as spare
part manufacturing, charging infrastructure business. There are many companies that are
working in electric vehicle related business which have partners in re seller program.
There is already two companies that are prevailing in the business are EVBOX and
Checkpoint. Companies who are giving offer in related fields to entrepreneur to turn
out with good business opportunities.
Critical analysis
There are many ideas for the development of business for an entrepreneur related to the electric
car . There are advantage and disadvantage in type business idea as some are facing the lack of
technical skill or some are having the demand for the development of the business. From the
view of company is better to analysis and identify business which is successful in longer run fir
the company. According to Ciambrone (2018) the business idea of EV Charging station is
beneficial as the need of charging the electric vehicle is there for the successful implementation
of electric vehicle in economy. But the Grant (2016) argued that there are various type of
batteries used in different vehicle do it is every difficult to estimate the demand of which
charging unit will be more and to which difficulty.
According to Victor (2017) the business idea of Training service for maintenance of electric car
is the business which require a high level of skill to provide development in maintenance if
electric car however it was argued by Ciambrone (2018) that there are different technology used
by different companies so the training will become reluctance with rapid change of technology.
So this business idea will not be able to succeed for longer run. The next business idea Self drive

electric car rentals is developed to minimize the cost of by fuel combustion cars. However, the
Grant (2016) argued that there will be citizens who don't know how to drive which can turned as
threat to public so the business turned out to be risky.
According to author it is said that EV's management app will help in developing the idea if
managing the business of electric car. However, Victor (2017) argued that they is continuous or
the development of business app so that many more advancement can be handled in single app.
So the business is not profitable for the longer run in development of company.
CONCLUSION
In the following report, there is the discussion about the development of electric car in economy
and importance of this technological advancement. The report in context of the company Volvo
which is premium car maker came with an idea of replacement of internal combustion engine by
electrification as of its core of there future business. In this report environment analysis of
electric automobile sector and need of there development for future generation is done. The
pestle analysis helps in identifying the impact of various forces in development of any business
idea in economy. There were many threats and opportunities due to these force such as the
insatiability due to EU referendum or change in trends in potential customers regarding
awareness of reduction in carbon footprints. There are many business opportunities that are
available with development of electric cars in the market but company want to invest in business
that is effective in longer run.

Reference
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Victor, P.A., 2017.Pollution: economy and environment. Routledge
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