PESTEL Analysis of Germany for Smog Free Bicycle Company

Running head: STRATEGIC MARKETING
Strategic Marketing
Name of the Student
Name of the University
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Executive Summary
The main aim and the purpose of the assignment is to conduct PESTEL analysis of Germany
which will help in analyzing whether the company of smog free bicycle requires to decide
whether they should be entering into the market or not. The three different factors which are
required to be analyzed in this respective report is inclusive of environmental aspect, legal
aspect along with the social aspect.
Germany is one of the eco-friendliest kind of countries in EU and they are trying to
implement the proper usage of the different eco-friendly products such as usage of the
different bicycles along with usage of such objects as public transportation. This has been
done through the usage of different laws, policies along with regulations at local along with
federal level.
The proper development and enhancement of the car free zones along with the different
stations of parking of bikes along with there is restriction of the speed of the cars along with
there should be proper increase in the gasoline and CO2 based taxes. The respective country
has started this approach which will help in supporting the safety of the different cyclists.
Furthermore, based on the PESTEL analysis, the respective company needs to decide the
different factors as to enter into Germany due to the following reasons:
● This has been noticed that more than 72 million individuals in Germany use bicycle
along with more than 10% of the different trips are taken by bicycles as well
● There are various laws and legislations along with programs and policies which are
being implemented by the government at local along with the federal level and this

helped in promoting the usage of the bicycle among the different individuals and
making the ownership of the car very costly in nature
● The Germany Country has provided more than 18550 km of the tracks of cycle in the
federal highways and there will be addition of more than 200 to 300 km which is
required to be added in subsequent year.
● Germany has tried to launch new kind of bike named Autobahn (Radschnellweg)
which is being dedicated to the cyclists in the entire market
● The huge number of stations for parking of bikes, neighborhoods for free car along
with the traffic areas in the entire Germany which is making it favorable for the
company
● The number of fatalities of cyclists has ben decreased by more than 80% in Germany
over the last few decades.

Table of Contents
Introduction................................................................................................................................4
Evaluation and Review of PESTEL Model...............................................................................5
PESTEL Analysis of Germany..................................................................................................8
Legal Factor...........................................................................................................................8
Environmental Factor...........................................................................................................12
Social Factor.........................................................................................................................15
Recommendations....................................................................................................................19
References................................................................................................................................20
Appendices...............................................................................................................................23
Appendix 1: Mechanism of PESTEL Analysis....................................................................23
Appendix 2: Development of Gasoline Taxes in Germany.................................................23

Introduction
The report helps in the overall analysis along with the determination of the project
related to smog free bicycle wherein the main aim is towards the reduction of the pollution
along with proper development of the smog free kind of cities with proper innovation of the
bicycles which helps in inhaling the polluted air and releases the fresh and clean kind of air.
This kind of cycle is required to be introduced in Germany which will be of huge advantage
for the company. Furthermore, in order to investigate the overall feasibility along with the
success of the entire project which will be started and established in Germany, proper
external analysis of Germany along with the impact of the same is required to be analysed in
an efficient manner.
As hypothesized by Benjamin Franklin, “If you fail to plan, you are planning to fail”,
which helps in analysing the overall strategic planning along with the importance of the same
for any kind of business wherein this allows the managers and owners in order to make the
better kind of decisions along with avoiding to be confronted by the different kinds of
difficult situations which have been anticipated in the past.
The first section of the entire report helps in the overall critical review of the model of
PESTEL as the strategic tool of marketing which helps in involving the different strengths
along with weaknesses. Furthermore, the second section deals with evaluation of the PESTEL
analysis which is inclusive of Social, Environmental and Legal aspects. Lastly, the report
helps in the recommendations which are required to be provided in order to support the
decisions of the smog free bicycle company in order to enter the market of Germany.

Evaluation and Review of PESTEL Model
The analysis of PESTEL Model is essential in nature which is being used by the
different kinds of businesses while launching a new product or service along with when they
are entering into the new market or region (Ellingsen, Singh and Strømman 2016). The
analysis of PESTEL model helps in allowing the business to evaluate and examine the overall
external environment analysis of the specific kind of city, region or country (Figure 1) with
the proper investigation of the impact of the different external kind of factors on the
organization (Figure 2 and Appendix 1).
Furthermore, with the help of PESTEL analysis, this has allowed proper exploitation
along with identification of the different kinds of opportunities which may not be detected by
the organization along with anticipation of the different kinds of difficulties along with
threats which may arise (Federal Ministry of Transport, Building and Urban Development
BMVBS, 2008). Moreover, with the help of the PESTEL analysis, this allowed the business
to maintain and obtain the competitive advantage over the different competitors.
Additionally, in order to conduct the PESTEL analysis, the business needs to follow
the simple kind of process which will be starting from the brainstorming of the different
external factors which can cause and effect the organization which will be in relation to the
factors of the PESTEL. Furthermore, identifying, evaluating and analysing the implications is
required to be done. Finally, profitability rating of the different issues which are happening is
required to be analysed in an efficient manner.