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PESTLE analysis of auto-mobile industry
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Added on 2021-02-21
PESTLE analysis of auto-mobile industry
Added on 2021-02-21
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GLOBALBUSINESSENVIRONMENT
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1A. PESTLE analysis of auto-mobile industry.............................................................................1B. Porter's Five Forces for the auto-mobile industry which is global.........................................4CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9
INTRODUCTIONA. PESTLE analysis of auto-mobile industryGlobal environment can be determined as the overarching environment is which acompany is being operated. It is a concept which includes a wide variety of factors that canimpact a business consisting of geographic locations, politics, culture, economic status and thetechnology of the global environment. Present report is based on Europe auto-mobile industries.This report includes a PESTLE analysis on auto-mobile industries of Europe in which all thefactors of PESTLE are being included with the effect of electrification in auto-mobile industry.Lastly, this report consists of effect of porter's five forces on electrification of auto-mobileindustry of Europe(D’Angelo, and Presutti, 2019).PESTLE analysis is tool which is used by the marketers for the purpose of analysing andmonitoring the macro environment factors of the market that influences an organisation. It isbeing used for determining the opportunities and threats which are and which can be faced by anorganisation. Auto-mobile industry play a vital role in developing the economy of Europe. Itwas being started in the year 1890 when the technology was at the stage of combining the steamengines and road wagons after several efforts of many decades(Abrahamsson,Boter, andVanyushyn, 2019). Electric Mobility refers to the electrification of automotive power-train. All the vehiclesfor which electric motor can be primary source of propulsion can be referred to electric vehicles.For implementing this in the auto-mobile industry of Europe there are several strengths andopportunities for the auto-mobile companies whereas it has several threats and weaknesses forthe same which are to be determined with the help of PESTLE analysis(Feng, and Lu, 2018).All the factors of PESTLE analysis play a significant role in understanding theopportunities and threats of electrification of the automotive power-train. There are some power-train alternatives developing under, with several storage solutions and several sources ofpropulsion. The factors which affect the electrification in auto-mobile industry of Europeincludes political factors, social factors, technological factors economic factors, legal factors andenvironmental factors(Okan, and et.al., 2016).1
Political Factors : Thereis a continuous pressure on auto-mobile industries of Europe bythe government to reduce the prices so that it can be consumed by the middle class peopleof Europe too. Despite of these companies are increasing the prices because of so muchof involvement of technology in auto-mobile industry. This industry is being a hugesource of income for the government of Europe too as it generates a huge revenue whichresults in good income through tariffs and taxes(Ojo, and et.al., 2017). For theimplementation of electrification there is a huge scope in the Europe as there are nopolitical barriers in Europe for preventing the implementation of electrification of power-trains in the auto-mobile industry of Europe. Political factors have always effected theauto-mobile industry but in the case of electrification of power-trains, there is a hugescope for the auto-mobile companies in Europe as government is with the electrificationof vehicles as they consumer less energy than fuel consumed vehicles(Noble, and et.al.,2015). Government has asked the auto-mobile companies to develop high mileage carsbecause of fuel availability which is the major issues in British countries. This made thegovernment to introduce electrification in the vehicles by automotive companies inEurope. Economic Factors : Auto-mobile industry of Europe is majorly effected by the economicfactors of Europe. There several economic crises in past few years which directlyimpacted the auto-mobile industry in Europe(Miller, 2015). It has directly influenced thesales of the companies in Europe. For the implementation of electrification there were nosuch issues by the economy of Europe and it supported the companies to bring in theelectric vehicles. Economic conditions in Europe helped the auto-mobile companies tointroduce electric vehicles as fuel prices were increasing on a regular basis which madethe consumers to use electrified vehicles which consumes less electricity and allows theconsumers to refuel their vehicle with electricity more economically as electricity ischeaper than fuel in Europe. This was the major factor which helped the electrification tobe successful in Europe(Gonzalo, and Cassiolato, 2016). There was high production ofcars in Europe at a time which resulted in high competition, but these cars were fueloriented which made the middle class people to use electric vehicles. In a recent periodthere is a increase in the prices of Europe in auto-mobile industry because of inflation.This factor too helped the people of Europe to move forwards with electric vehicles in
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