PESTEL Analysis for Pollution Eating Bikes in Germany

UNIVERSITY OF NORTHAMPTON
STRATEGIC MARKETING
[MKTM028]
PESTEL ANALYSIS FOR POLLUTION EATING BIKES
GERMANY
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Table of Contents
1.0 EXECUTIVE SUMMARY.......................................................................................................2
2.0 INTRODUCTION.....................................................................................................................3
3.0 PESTLE - THEORETICAL APPROACH................................................................................3
4.0 PESTEL ANALYSIS – GERMANY........................................................................................5
4.1 ECONOMIC..........................................................................................................................5
4.2 SOCIAL FACTORS..............................................................................................................7
4.3 ENVIRONMENTAL FACTORS..........................................................................................8
5.0 RECOMMENDATIONS.........................................................................................................11
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1.0 EXECUTIVE SUMMARY
Pollution eating bike is quite new and unique concept that helps in reducing the pollution from
the environment. The purpose of this report is to assess opportunities and threats of the market of
Germany with the help of PESTEL analysis as a strategic marketing tool. The bicycle industry in
Germany is growing rapidly as mentioned in the report; Germany has secured second rank in
sales of the bicycles among European countries. People in Germany tend to utilize bicycle more
often as a main mode of transportation. Along with the growth in the industry bike sharing
system is also raised in the Germany over the years.
The market of the Germany is economically growing and attracting several companies in the
industry but the quality of air is rapidly decreasing in the major cities of the Germany. The main
concerns are the primary and secondary sources of the air pollution that contain PM 10 and PM
2.5 particulate matter. But the pollution eating bike is designed to diminish both form the
environment which can be considered as a problem solving move for the government of
Germany. In addition, government is readily involve in the various activities to promote the
cycling in the country and enhance the infrastructure of the cycling. So the pollution eating bike
company will get desired attention from government as well.
Moreover, the pollution eating bike entering into the market of Germany seems to be gratified
with market conditions. Considering the economic scenario, it is the right time for a company to
enter into the market as bicycle industry is rapidly growing. Further, the concept is unique and
problem solving so it will easily get acceptance from government as well society of the country.
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2.0 INTRODUCTION
The report portrays an evaluation and assessment of the market of Germany for seeking the
opportunities to benefit the entry of “pollution eating bike company” in Germany. To accomplish
the above-mentioned objective the company is using PESTLE analysis as a strategic marketing
tool which will incorporate the relevant factors that will influence the operations of a company in
Germany. The report is going to explore three major elements of the PESTLE that are economic,
environmental and social elements. Lastly, the final part of the assignment comprises of the
possible recommendations for the firm by involving the scenarios where it is most benefited for
the pollution eating bikes project.
3.0 PESTLE - THEORETICAL APPROACH
Basically, a PESTEL analysis refers to a tool or framework extensively used by the marketers
and owners of the businesses to monitor and assess the external or macro environmental factors
that affect the organization. PESTLE is the acronym of Political, Economic, Social,
Technological, Environmental and Legal (Jurevicius, 2013). For any organization, it is quite
impossible to control each and every factor of PESTEL but it is important to understand the
implication of them. In addition, PESTEL analysis provides an eye bird view of the external
busies environment of the company form several different angles of the industry (Peichl and
Pestel, 2013). Considering the viewpoints of different scholars and marketers, PESTLE analysis
is one of the easiest frameworks to understand and use for different facets of the business such as
it can be helpful in strategic decision making and planning (Jurevicius, 2013). Majorly
companies use PESTEL analysis when they either launch a new product or entering into the new
market because in both conditions it is essential to assess the external factors affecting on the
operations and products of the business (Srdjevic, et al. 2012). There are basically two tasks
performed through the PESTEL analysis; initially it helps in identifying the business
environment in which company is operating or will be operated. Secondly, the information
collected through analysis is help in forecasting the future and predicting the outcomes (Issa, et
al. 2010).
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