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Global Environment Analysis of Global Automotive Industry

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Added on  2020-12-10

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1 Global Environment INTRODUCTION 1 TASK 11 a) Environment of the Global Automobile industry using PESTLE analysis 1 b) Environment of auto-mobile industry using Porter’s Five Forces analysis 4 CONCLUSION 8 REFERENCES 9 INTRODUCTION Global environment is main part of automotive industry because it analyses the entire business process. Global environment is beneficial for Global auto-mobile industry because it can be analyse the market, industry and competitors, clients etc. TASK 1 1 a) Environment of the Global

Global Environment Analysis of Global Automotive Industry

   Added on 2020-12-10

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Table of ContentsINTRODUCTION..........................................................................................................................1TASK 1............................................................................................................................................1a) Environment of the Global Automobile industry using PESTLE analysis................1b) Environment of auto-mobile industry using Porter’s Five Forces analysis..............4CONCLUSION..............................................................................................................................8REFERENCES...............................................................................................................................9
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INTRODUCTIONGlobal environment is main part of automotive industry because it analyses the entirebusiness process. Global automotive industry is expansion of new markets driving the growthand development in terms of vertical integration of global market, site relocations. Globalautomotive industry expand their business all over the world. Global environment is beneficialfor Global auto-mobile industry because it can be analyse the market, industry and competitors,clients etc. This report will discuss about the PESTLE analysis of global automobile industry.Further, it also describes Porter's five forces which is helpful for analysing global auto-mobileindustry. TASK 1a) Environment of the Global Automobile industry using PESTLE analysis Global auto mobile industry is the fastest growing sector to expand their business acrossworld. There are multibillion companies and they have large number of brand in marketplace. In19th century, Automotive industry started expanding their business in global marketplace. It wasbecame an essential part of country economy as it was generating high revenue in market whichwas beneficial for organizations and country (Adenle, Stevens and Bridgewater, 2015). EasternEurope has become the major manufacturing country, which produced 3-4 million cars in 2010and even Russia's production is increasing 1.6 million but nowadays, it will be 1.2 million.AutomobileAutomotive industry has large size that's why its revenue and growth directlyimpacted on country. Auto-mobile companies also involved in marketing and sales. There are differentcountries making cars and building their own industries and factories in Poland, Romania, andSlovakia etc. In 21st century, the innovation and technology have important part of automotivecompanies because they can be easily differentiate in the vehicles and manufactures. Therefore,they mainly focus on the efficiency of fuel and environment. Automotive industry polluteenvironment because they generate toxic gases. Thus, organization will try to control the fuelutilization and produce an efficient or low emission cars in marketplace (Carlisle, 2014).Currently, automotive industry launch a new product in market such as electrical vehicle that isemission free. Everyone can use this vehicle. It describes the PESTLE analysis of automotiveindustry which is impacting on the business process.1
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Political Factor- Political factor plays important role in automotive industry because itdirectly impacts on profitability of automotive industry. Central government mainly concernabout the low emission vehicle. The tax on luxury car and their fuel guzzler very high. It isdifficult for people to maintain their vehicle services. In UK and US, the government has moreconcern about the safety and security so that it is providing low emission vehicle subsidy inmarketplace. In global market, it will increase the environmental friendly vehicle and most of thecustomer will attract towards vehicles and their services. The government support to lowemission vehicle for minimum environmental impact. The government rules and regulationaffect the revenue of brand and their organization. With the help of technology, it can be easy forautomotive company to provide low emission vehicle in marketplace. The government alsopasses all rules and regulation regarding healthy environment. It is important for organization tomaintain their services in market. Government change their laws and political regulationaccording to the market (Cavusgil and Knight, 2015). Political factor is important to control thebusiness process. For example- automobile industry manage their cost so that the political factorhave important role in this area. Economical Factor- Economic factor is also important in automobile industry. Economicfactor is important part of auto-mobile industry and this industry can be hit by the economiccrisis. In most of the cases, sales of vehicle is declining because of competitors. It is affectingthe economic conditions. If the condition of economyic better so the sale of car or vehicle remainhigh. Central Europe is one of the fastest growing country. Automobile industry produces manyproduct in marketplace. Russia and China is also another greatest automobile country to launchmany product in marketplace. The economic size and conditions are impact on productivity andprofitability of automobile industry. Global automobile industry is dependent on the purchasingpower of customer. There are different ways to analyse importance of economic factors in theindustry. Firstly, it will measure according to purchasing power of consumer because automotiveindustry depend on purchasing power of consumer (Del Giudice, Carayannis and Maggioni,2017). The largest brand mainly focus on providing product and services in low price because inthis way, it can attract customer interest in organization.Social Factor- Social factor affected automotive industry because of changing theculture, preferences and trend etc. Automotive industry adopt this force to maintain their socialculture for organization. Customers want specific look and style of car and they give more2
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