Environmental Analysis of an industry Assignment
11 Pages3274 Words78 Views
Added on 2021-02-20
Environmental Analysis of an industry Assignment
Added on 2021-02-20
ShareRelated Documents
EnvironmentalAnalysis of an industry
ContentsINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................1a) Forces shaping the business environment of the car manufacturing industry....................1b) Identify new and emerging business opportunities that the production and marketing ofelectric cars may present to entrepreneurs and business executives......................................4CONCLUSION................................................................................................................................7REFFERENCES..............................................................................................................................8
INTRODUCTIONEnvironmental analysis is a strategic tool and is an effective process used to identify allthe external and the internal elements which has an influence on the performance of theorganisation. This analysis about the environment helps in assessing the level of threat or theopportunity that the company may face while prevailing in the competitive businessenvironment. This project is based on Volvo cars which is a Swedish Multinationalmanufacturing company, headquartered in Sweden (Bartlett, Doz and Hedlund, 2013). Its coreactivity includes sale, production and distribution of sales of cars, buses and other transportationvehicles. This project is based on the trend of electric vehicles in Europe and making a radicalchange in the auto mobile industry. This project will highlight about the major forces that isshaping the business of the auto mobile industry and identify new and emerging businessopportunities within the respective business. MAIN BODY a) Forces shaping the business environment of the car manufacturing industry. As with the increasing trend of the auto mobile industry it has made the Volvo car maker,a premium car manufacturing industry to switch towards electric motors and place electrificationat the core of its future business. This led Volvo Cars to introduce XC90 T8, S90 T8 and thereare many other Volvo electrified range. In addition to this there are various forces which areshaping the electrification of the car manufacturing industry described as follows- PESTLE Analysis It is an effective framework or a model which is used to analyse and monitor the macroenvironmental factors that has a impact on the organisations performance. It is discussed asfollows- Political Factors- It is concerned with the governmental rules and regulations, relatedto import, export as well as other taxes and the tariff policies which has a impact on theprofitability and the performance of the auto mobile industry. As government all aroundthe world is rising favourism for low emission vehicles, moreover taxes on the luxuryvehicles are growing higher. In context to this markets like UK and EU are alsoproviding government subsidy on low emission vehicles. This is the radical changewhich forces the Volvo automotive industry to manufacture electrified cars and attains1
higher revenues for their vehicles brands (Wetherly, 2014). This has caused a change inrespective car manufacturing industry as the reduction in the governmental tax andtariffs it has persuaded Volvo to introduce electrified cars rather than the high pricedfuelled cars. This has led the industry to change. Therefore, reason for adopting thischange in Volvo cars is to gain competitive advantage and effectively enhances theirbrand image in the global market (Gupta, 2013). Economic Factors- This factors are considered with the economic condition of thecountry. It determines that when the economic conditions within country are notfavourable it will lead to lesser demands as well leads to increase in taxes in high pricedfuel vehicles. This forces the Volvo to switch towards electrified cars which will costeffective for the buyers within Europe and leads to continuous sales even at the time ofeconomic crisis (Jun, 2012). As earlier Volvo focused on producing high priced cars soas to target only the upper segment of the customers and therefore attains maximumprofitability but due to changes in the economic conditions of Europe and UK, it hasforced Volvo to introduce change in its business and therefore has lead towards adoptingthe change of introducing hybrid cars in the market, which will be low priced and will beaffordable for all the customers and thereby would aid competitive advantage to the firm.Social factors- This factors is concerned to changing demand and requirement of theconsumers in the auto mobile industry which is concerned to increase environmentalconcerns, attitudes and emphasis of the customers to buy electrified cars. Therefore, thispersuades Volvo car manufacturing industry to provide electric cars and the eliminatesthe use of fuel as required in traditional vehicle. This electric cards will be cheaper thanthe traditional cars and will attract lager number of customer and will lead company torise profitability and will be able to sustain in this competitive market place. When theproducts are manufactured and provided to the customers as per their requirement, it willenhance brand image of the company and will attract larger customers towards theelectric car manufacturing company (Kim, Rasouli and Timmermans, 2014). Technological Factors- With the rapid increase in the technology, it had created fiercecompetition for Volvo to adopt to the latest technological trends so as to satisfy the needsof the target market. With this company has announced to focus on the electrification atthe core of its future business and will lead towards the invention of internal combustion2
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Environmental Analysis of an industry Assignmentlg...
|9
|3070
|149
(PDF) Electric vehicles in Europe from 2010 to 2017lg...
|11
|3492
|77
Environmental Analysis of Car Manufacturing Industrylg...
|10
|3140
|97
Volvo Cars Transition to the Age of Electric Vehicleslg...
|15
|3208
|23
Environmental Analysis of Volvolg...
|10
|3212
|184
Pestle Analysis Of The Car Industrylg...
|10
|3218
|87