PESTEL Analysis: Pollution Eating Bikes in China

PESTLE ANALYSIS
Pollution eating bikes

TABLE OF CONTENTS
EXECUTIVE SUMMARY............................................................................................................. 1
INTRODUCTION........................................................................................................................2
PESTEL REVIEW AS A STRATEGIC MARKETING TOOL................................................................2
PESTEL ELEMENTS....................................................................................................................4
POLITICAL ELEMENT............................................................................................................. 4
ECONOMIC ELEMENT........................................................................................................... 7
SOCIAL ELEMENT................................................................................................................ 10
RECOMMENDATIONS AND CONCLUSION...........................................................................12
REFERENCES........................................................................................................................... 13
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EXECUTIVE SUMMARY
The E-bike market in China is growing at a rapid rate. Among all the other countries, China
has observed the biggest rise in the sales of E-bikes in the last years. The activity of cycling
has become common in all the parts of the country which encourages the rise of bike-
sharing business. China is facing the problems of smog that is justified by the fact that high
levels of air pollution have exceeded the limit set by the pollution control board and World
Health Organisation.
The country’s government has launched several campaigns for environmental control and
spreading awareness about the use of eco-friendly vehicles among which the E-bikes are the
most popular vehicles used by the people. So it is clear that the government of China has a
clear aim of improving the cycling infrastructure so as to enhance the attractiveness of using
bikes in China.
China was given a huge amount of financial support for supporting the E-bike project. The
projects are aimed at boosting the competitiveness of the urban infrastructure to support
the better conditions for Ecycling. The examination and evaluation of the external
environment is an important aspect to be considered when setting up a company that sells
the pollution-eating bikes in China.
The analysis of the macro environment demonstrates that the country is prone to smog and
is suffering great environmental damage that needs to be controlled and one of the
methods is through promoting Eco-friendly vehicles for commutation.
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INTRODUCTION
A business report will be prepared for assessment of the China market with the help of a
marketing tool for a company named as “Pollution Free Bikes” established for selling the
pollution-eating bike in China. The PESTEL will be used as a strategic tool of marketing for
analysis of the factors that can have an impact on the establishment and success or failure
of the company. The report will analyse 3 elements of PESTEL out of 6 namely Political,
Economic and Social. At the end of the report, recommendations will be suggested for the
organisation for giving more emphasis on the aspects that can contribute more towards the
success of the company.
PESTEL REVIEW AS A STRATEGIC MARKETING TOOL
PESTEL analysis is a tool or a framework used by the vendors for analysing and monitoring
the external environmental factors that influence the decision making process and
operations within an organisation (Yüksel, 2012). The results of the PESTEL analysis is
utilised for identification of the weaknesses and the possible threats used in the SWOT
analysis. The factors that are analysed in the PESTEL analysis are the political,
environmental, social, economic, technological and the legal factors. It is almost
unmanageable for an organisation to control all the external factors and direct them, but
the consequences of these factors are important to be considered. It is essential for the
organisations to consider and check the changes in the macro environment at frequent
intervals of time so that they can sustain in the market and also gain a competitive
advantage for the long duration of time in an unstable and expanding business
environment.
PESTEL is a framework that can be used for a number of factors beneficial for the business
like for strategic planning, product development, planning for the organisation etc.
Furthermore, PESTEL analysis is carried out in the course of the launch of new products by
the existing company or a new company emerging in the market that is focused towards
entering the market of a new geographical region and a new market route. The analysis of
the external environment has two basic functions out of which one is informing about the
environment that needs a research and second one is concerned with providing information
regarding prediction of future conditions and status of the company that it is expected to
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