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Industry Environmental Analysis

   

Added on  2021-02-19

11 Pages3354 Words111 Views
Environmental Analysis of anindustry

Table of ContentsINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................1Explain the major forces shaping the business environment of the car manufacturing industry1Discuss the reasons why there is a drive towards the production of electric cars and theircompetitive advantages................................................................................................................4Identify new and emerging business opportunities......................................................................5Critically assess other businesses.................................................................................................6CONCLUSION................................................................................................................................7REFERENCES................................................................................................................................8

INTRODUCTIONEnvironmental analysis is the strategic tool that define as the process that analysis theinternal or external environment factor. This component influences the performance of theorganization. Thus, internal factor indicates the strength and weaknesses of business whereasexternal element indicates the external environment performance as it describe the threat andopportunity (Lin and Raza, 2019). Therefore, researcher conducts research and gather all theessential information to estimating and predicting the environment future and current trends.The present report is based on electric vehicles in Europe” focusing on Tesla. It is theelectronic automotive company based on Palo Alto, California U.S. The assignment will cover the various environment aspects such as to explain the pestleanalysis in the context of electric vehicles and changing environment. Thus, report will describethe opportunity of production of electric cars that helps to gain a competitive advantage. Lastly,identification will be conducted about new and emerging business opportunities also define howorganisations get engages in international trade. MAIN BODYExplain the major forces shaping the business environment of the car manufacturing industryCar manufacture industry has changed in the last few years due to change on differentenvironment factors, buying behaviour of consumers, constant innovation, taste, style andcapability of consumer purchasing power. As today the demand of electric cars are high thatleads to electronic automotive producers focus on developing the high technology. They set theirpriorities for increasing the competitive advantages. Thus, car manufacturing industry are changerapidly by improving and adding high technology in their production process. The main reasonof shifting towards the electronic cars is that a huge customer demand, government interference,policies and high competition by new entrants into the market. For example- Volvo, ford, jaguar land rover and Toyota is the main competitor and theyall have announced the new portfolio of energy car to get win over the competitors. This leads tohave enhancement in competitive advantages (am Ende, ed.2019). On the other side, Tesla isone of the firm that only serve the electric cars to their customer to attracts the customer anddepict the good brand value in the environment. Henceforth, there are many auto-mobiles industry that are taking initiatives to launch thybrid car that assists to protect environment. So, cars manufacturer needs to put their core focus1

on developing the new and innovative technological advancement. Thus, auto maker needs tomake significant plans to improve fuel efficiency that leads to sustainability in order to meet thedemand of customer. On the other side, the ideas of launching the electric cars is to provide moresustainable vehicles as dynamic features leads to have enhancement in brand loyalty Therefore,PESTLE forces will assist to identify the environment analysis of Tesla In the context of electricvehicles –at international level. Thus, it defined in following manner as- Pestle analysis – This is the tool that determines the macro environment factor use by marketersand researcher in order to identify the internal strength and weakness (Fonseka, Rajapakse andRichardson, 2019). Thus, it also aids to determine external threat and opportunity. Political factor – This factor is plays an important role as it have directly impact on theperformance of the car manufacture industry. In this factor the government inference affects thebusiness mostly. Thus, Tesla is majorly sales the purely electronic cars as it creates the positiveimpact because the European government is support the low excretion vehicles. As result thehigh support by the European union and European government is leads the demand of electricscars. On the other side, Tesla takes the green car initiative so, government gives the properbudget for supporting this project. Further, government provide the tax incentives in the electric2Figure 1: Pestle analysis. 2016Sources: (pestle analysis. 2016)

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