PESTEL Analysis as a Strategic Marketing Tool for Pollution-Eating Bikes in Australia

This report discusses the use of PESTEL analysis as a strategic marketing tool for pollution-eating bikes in Australia. It evaluates the expansion of this strategy in Australia and provides recommendations for the company to expand their bikes in the market of Australia. The report also explains the six factors of PESTEL analysis and their significance in evaluating the external market capabilities of a city or country for the business to expand or to initiate its activities properly.

RUNNING HEAD: MBA strategic marketing
MBA strategic marketing

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Executive Summary
The purpose of this report is to provide information about the use of PESTEL analysis as a
strategic marketing tool. The report discusses about the news article on pollution eating bikes
formed in Beijing. The report evaluates the expansion of this strategy in the country Australia; it
evaluates the analysis of the country Australia for the company to expand their scope of activities
in that country. The report explains recommendations for the company to expand their bikes in
the market of Australia. The country is in emergent need to use the resources so as to emit less
carbon in the environment. Also Australia ranks on top in emitting carbon in the environment.

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Contents
Executive Summary.....................................................................................................................................1
Introduction.................................................................................................................................................1
PESTEL as strategic marketing tool..............................................................................................................1
Analysis of Australia for the company.........................................................................................................3
Political....................................................................................................................................................3
Technological...........................................................................................................................................4
Environmental.........................................................................................................................................4
Recommendations for the company...........................................................................................................5
Conclusion...................................................................................................................................................5
Reference....................................................................................................................................................5

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Introduction
The purpose of this report is to provide information about the use of PESTEL analysis as a
strategic tool. The PESTEL analysis is a tool that evaluates the external market capabilities of a
city or country for the business to expand or to initiate its activities properly (New, et. al., 2011).
This analysis includes six factors namely, political, economic, social, technological,
environmental, legal. These six factors summarize the attributes of the place for the organization
(Zhou, Ang, and Poh 2008). The external factors play a major role in helping or addressing the
positive and negative factors for the organization (Ratnatunga, and Balachandran 2009). Further,
the below mentioned report explains the analysis of three factors of PESTEL for the company to
enter in Australia. Pollution-eating bikes are an innovative project that should be adopted by
companies worldwide (Hanjra, and Qureshi 2010). Australia faces major issue due to
environmental pollution so with the help of this project the company can earn reputation in the
market (Wunder, Engel, and Pagiola 2008). Further, more details about the report are discussed
below:
PESTEL as strategic marketing tool
The process of strategic management is very important for thee all the enterprises present in the
market as it helps them to increase their competitive advantage in the external market (Smith
2013). The strategic management is a system focused tool that plans and monitors the growth of
the company and helps them to meet the objectives as well (Ewing, and Cervero 2010). Further,
the explanation of each segment PESTEL as strategic tool is discussed below:
Political
The political aspect of this analysis explains various laws and regulations along with the changes
in the political system of the country (Eliasch 2012). This aspect addresses the changes present in
the government of a country that can affect the activities of the organization in the target market
(Bribián, Capilla, and Usón 2011). Laws changes according to the change in the political system
of the country due to which the activities of the companies changes accordingly (Pandey,
Agrawal, and Pandey 2011). Like, with the change in the government of Australia, the

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companies started changing their activities in order to align their business functions with the
system of government (Hertwich, and Peters 2009).
Economic
The economic aspect talks about the economies of the country; this factor is straightforward as it
talks about the state of economy of the country in terms of its revenue, profits, per capita income
of people etc. (Brandão, et. al., 2013).The economic factors explain the real condition of the
country in terms of normal people (Batáry, et. al., 2011). Also it explains the favorableness of the
organization to work in the country by explaining that whether people will invest in the product
or not (Dai 2011). Further, along with this the economic factor also explains the inflation rate,
trends in stock market, labor cost etc. (Su, and Ang 2012).
Social
The social factors explain perspective of the customers and community towards the products and
services offered in the market (Bae Choi, Lee, and Psaros 2013). This aspect talks about the
culture prevailing in the environment, buying behavior of people their lifestyle, level of
education, population rate etc. (Reimann, et. al., 2008). A product cannot sustain its growth in the
market if it oppose to the culture prevailing in the environment. Thus, it aspect explains the do’s
and don’ts prevailing in the environment for the companies (Sharafi, et. al., 2012).
Technological
The technological factors explain the level of technology present in the environment that can
help the organization to successfully grow (Friedlingstein, et. al., 2014). As every organization
uses technology to sell their products and services in the environment use the level of
advancement of technology in the environment can helps the organization to organize their
functions accordingly (del Río González 2009).
Environmental
The environment factors include the environment present in the country that can affect the
activities of the company. Climate change, weather and use of eco-friendly products are a part of

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this aspect. Bad weather can affect the profitability of many businesses, thus favorableness of
this aspect is very important for the organizations to grow (Chen, and Bouvain, 2009).
Legal
The legal factors are likely similar to the political factors only but it does not include the
instability of the government but it only include the laws and regulations formed by the
government in response to the products and services offered by the organization (Hertwich, and
Peters 2009).
Thus, it should be noted that these factors helps the organization to initiate activities considering
all these aspects in their business, resulting to which the business subsequently grows (Booth, et.
al., 2012). This analysis evaluates the features present in the market that can help of which the
business can grow or fail (Wiedmann, and Minx 2008). Thus, if a company analyses these
aspects and then expand their business in the new market, (Luderer, et. al., 2013) then are already
prepared for the outcomes and fluctuations and do not face difficulty in managing it and growing
repeatedly. Thus, in this way this tool acts strategically for the growth of the business (Solomon,
et. al., 2009).
Analysis of Australia for the company
‘Clean the air as you ride on pollution-eating bikes’ is a news that was posted on The Times
newspaper, the article talks about the production of innovative bicycles that inhale polluted air
and exhale fresh air in the environment (Hu, et. al., 2014). The organization is aiming to
introduce this technique in the market of Australia (Weidema, et. al., 2008). These bikes are
developed in Beijing so as to clean most part of the country (Sodhi, and Ehrlich 2010). British
streets are expected to use this strategy in near future to clean their environment (Wong, and
Brown 2009). This concept is to redefine beauty and lifestyle by providing cheap and easy bikes
to people for use (Soytas, and Sari 2009). Further, the growth and expansion of the company in
the country is assisted by various factors, these factors in the form of PESTEL analysis is
discussed below:

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Political
There are three levels of government in the country Australia that are Federal government, State
government, Local Government (Agarwal, Grassl, and Pahl 2012). The government of the
country comparatively holds a stable design that helps the business processes to growth
effectively (Game, et. al., 2009). Further, there is presence of the activity of deregulation in the
country (Dai 2013). The government of the country believes in expanding its scope of business
and revenue by helping other organizations to freely enter in their country (Zuev 2018).
Resulting to which, it gives an opportunity to the companies to enter in the market of Australia
(Stork, Goosem, and Turton 2009). The country that holds les restriction of trade barriers attract
the companies to enter in the market (Lehmann, et. al., 2008). Further, this gives a win-win
situation to both the company and the government, as the government ears revenue and the
company gains a new target market to expand (Adams 2013). The government of the country
openly helps the organization to trade in the Australian market (Biswas, Barton, and Carter
2008).
Further, market of Australia is fit for the company to expand its business as there is stability in
the political system due to which the government will not raise questions on the activities of the
company (Grant 2016). Stable government will instead help the activities of the organization to
expand its scope of business and promote the use of such bikes in the market (Olivier, Peters,
and Janssens-Maenhout 2012).
Technological
Relating the activities of the company to the technological factor, it should be noted that as
discussed in the case the bikes include a front rack mounted module that takes polluted air and
reduce the carbon content present in the environment (Bose 2008). So, in order to make such
environmental changes and produce such bike, the company requires to make use of hi-tech
technology in the market (Christensen, et. al., 2009). Resulting to which, the company will not
face difficulty in this case as there is presence of adequately technological measures in the
country (Markovska, Taseska, and Pop-Jordanov 2009). There is presence of strong internet
connection in the country, approx. 83% of the population uses internet (Lehmann, and Joseph
2015) and the country makes around $80 billion investment on the information technology
infrastructure of the country (Tranter 2011). The government of the country aims to increase the

MBA strategic marketing 7
extent of use of innovation by the companies by providing efficient technology at lower than
expected rates (Zavadskas, Turskis, and Tamosaitiene 2011). This also increases the
opportunities for the innovative companies to innovatively organize their activities in the target
market (Peters, et. al., 2012). Most of the people of the country are educated that gives an
advantage to the organization to explain the importance of use of pollution eating bikes in the
environment and insist them to use it (Johnson 2016). Also, the government of Australia is
focusing on surface transport due to which there are higher chances for the company to grow in
this market (Wang, Chen and Ren 2010).
Environmental
The country has started facing climate change issues due to the effect of global warming. Due to
which, environmental awareness has become one of this major issue for the people of the country
(Biswas, et. al., 2010). Unexpected changes in the environment clearly explain the environmental
instability present in the country (Holdsworth, et. al., 2008). Travel and transport industry is
highly affected with the effect of global warming (Mirakyan, and De Guio 2013). The
government of the country has introduced greenhouse and carbon emission laws in the
environment so as to protect the state of the country (Rogelj, Meinshausen, and Knutti 2012).
The government has initiated Global Moratorium on commercial Whaling and various other laws
to protect the life of creatures of Ocean (Willard, and Hitchcock 2009). Australia is an island
country but still the country has faced severe droughts and wildfires and recent years that can
explain the environmental degradation of the country (Billett 2010).
Australia has highest per capita emission of carbon di oxide in the world that shows that there is
maximum need of pollution eating bikes in the environment to protect the survival of people in
the country (Garnaut 2011). As the bike inhales carbon content from the air and filter it and
pump clean air, resulting to which use of this aspect can improve the state of environment of
Australia (Bose 2010).
Recommendations for the company
There are some of the recommendations with the help of which the organization can effectively
contribute their share in the market of Australia (Boon, and Raven 2012). Initially, it should be
noted that expansion in Australia can be regarded as one of the positive factor can positively

MBA strategic marketing 8
improve the sales of the company (Bebbington, and Larrinaga-Gonzalez 2008). Looking at the
environmental aspects of the country it should be noted that the company should sell their
products using price penetration strategy in the market (Hochman, et. al., 2013). This strategy
will initially help the people to purchase bikes on low rates then after gaining reputation the
company shall increase its price (Boyes, Skamp, and Stanisstreet, 2009). Further, the company
should also ask for subsidy from the government of the country; as the organization product that
helps the government to reduce the rate of carbon emission in the environment (Goddard,
Dougill, and Benton 2010) so the company should seek subsidy from government to serve the
bikes at lower rates in the environment (Dodman 2009).
Looking at the technological factors, this aspect provides opportunity to the company to increase
its sales with the use of social media medium (Pielke 2010). Also, they should use this type of
technology to increase the competence of products in the market and help the people to get
greater level of satisfaction in the market (Avi-Yonah, and Uhlmann, 2009).
Conclusion
Thus in the limelight of above mentioned events, it should be noted that it is very important for
the country to make use of pollution eating bike in the market. As discussed above that Australia
is ranked at the top most position in the market in terms of emitting carbon content in the
environment. Thus, in order to clean the air from carbon content, the people should make use
these bikes. The environmental, political and technological aspects support the activities of the
company and provide them numerous advantages in the market of Australia as well.

MBA strategic marketing 9
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