EcoBikers Limited: PESTLE Analysis for China Market Entry Strategy

This report presents a PESTLE analysis for EcoBikers Limited, a UK-based bike manufacturer, as it plans to enter the Chinese market. The analysis covers political factors, highlighting the influence of the Communist Party of China and its control over businesses. Economic factors reveal China's strong banking sector and relative resilience to global economic recession. Social factors discuss the conservative nature of Chinese society and preferences for traditional business models. Technological factors emphasize the rapid technological growth in China, offering opportunities for business advancement. Legal factors address the arbitrary regulations and support for state-owned industries. Environmental factors acknowledge China's pollution issues but also the potential for EcoBikers' pollution-reducing bikes. The report concludes that while opportunities exist, EcoBikers must navigate political, social, and legal challenges to succeed in the Chinese market. Desklib offers similar solved assignments for students.

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PESTLE Analysis
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Table of Contents
Introduction................................................................................................................................2
Organization...............................................................................................................................2
PESTLE Analysis.......................................................................................................................2
Political factors.......................................................................................................................3
Economic factors....................................................................................................................3
Social factors..........................................................................................................................3
Technological factors.............................................................................................................4
Legal factors...........................................................................................................................4
Environmental factors............................................................................................................5
Conclusion..................................................................................................................................5
References..................................................................................................................................6

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Introduction
The competitive world of business has made it imperative for the various
organizations of the contemporary business world to analyze the micro as well as the micro
environment in which they are operational (Kolios and Read 2013). The frameworks like
PESTLE analysis, SWOT analysis and others are very important for the various organizations
as they give an idea to the various organizations not only about the kind of environment in
which they are operational but also about the key competencies as well as threats which
galore their business (Kolios and Read 2013). Therefore, the various organizations are
increasingly taking the help of these frameworks to analyze the environment in which they
are operational. This report will discuss about the PESTLE analysis of a bike manufacturing
organization called “EcoBikers Limited” belonging to the nation of United Kingdom which is
trying to launch its product in the market of China.
EcoBikers Limited
The organization “EcoBikers Limited” which is trying to enter into the business
market of China is one of the largest ones of the nation of United Kingdom. It has more than
15 different manufacturing centers in the nation of the United Kingdom and in addition to the
“brick and the motor” model of business it also takes the help of the “omni-channel business
strategy” to provide e-commerce services to the customers. In addition to these, “EcoBikers
Limited” provides a wide range of innovative bikes to the customers starting from the
“Pollution Eating Bikes” to the traditional ones to the customers. The organization after
enjoying a considerable amount of success in the nation of the United Kingdom has decided
to expand into the business market of China to further enhance the amount of revenue
generated by it on yearly basis.

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PESTLE Analysis
The PESTLE analysis is a framework which gives an overview to the organizations
about the different factors which are likely to wield a considerable influence on the business
process of the concerned organization (Srdjevic, Bajcetic and Srdjevic 2012). The important
attributes of this framework are “political, economic, social, technological, legislative and
environmental factors” (Srdjevic, Bajcetic and Srdjevic 2012).
Political factors
The nation of China is a Communist one and the major activities of the nation are
controlled by the “Communist Party of China” (Dreyer 2015). The “Communist Party of
China” exercises a stringent control over the various organizations and the business of the
nation is still as per the Communist model of business (Dreyer 2015). Furthermore, it is seen
that the government of the nation takes very little initiative for the promotion of the private
business. Therefore, it would be apt to say that this particular political condition of the nation
of China is likely to act as a threat to the EcoBikers Limited which is trying to expand into
this particular nation.
Economic factors
The nation of China ranks at the 71st position in terms of GDP among the various
nations of the world (China.org.cn. 2018). Furthermore, the nation has the “world's largest
total banking sector assets of $39.9 trillion (252 trillion CNY) with $26.54 trillion in total
deposits” (China.org.cn. 2018). The best part about the economy of the nation is that the
economic recession from which the majority of the world is suffering from has very little
effect on the economy of China (Guthrie 2012). Therefore, it would be apt to say that this
particular economic condition of the nation is likely to act an opportunity to EcoBikers
Limited.

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Social factors
The society of the nation is a very conservative one and the people of the nation still
believe in taking the help of the various kinds of traditional models of business (Geng et al.
2012). Furthermore, the process of multiculturalism has very limited amount of effect on the
society of the nation and unlike other nations of the world the nation is not much influenced
by the Western culture (Geng et al. 2012). Therefore, it would be apt to say that the online
services provided by the retail organization will not be much appreciated by the people of the
nation. Furthermore, it is seen that the people of the nation do not like to take the help of bike
and feel more comfortable driving cars. Thus, it would be safe to say that this particular
factor is likely to act as a threat to the retail organization willing to expand their business into
it.
Technological factors
The growth rate of technology in the nation of China is very high and therefore it is
seen that the organizations of the nation related to the different industries are increasingly
taking the help of this particular factor to not only produce surplus products but also for the
other important aspects of their business process like marketing, communication and others
(Tian et al. 2014). Therefore, it would be apt to say that this particular factor is likely to act
an opportunity for EcoBikers Limited which is trying to start its business in the nation of
China.
Legal factors
As already mentioned the nation of China is controlled by its party “Communist Party
of China” and all other organs of the state are subordinate to it (Potter 2013). Furthermore, it
is significant to note that this particular party supports the various owned industries whereas
for the private organizations the rules are very arbitrary and not clearly demarcated (Potter
2013). Moreover, it is also seen that the limited number of legislations which they have for

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the process of business is being amended by the party as per their requirements (Potter 2013).
Therefore, it would be apt to say that this particular factor is also likely to act as a threat for
the retail organization.
Environmental factors
The nation of China in the recent times have emerged as one of the most polluted
countries and it is significant to note that very little initiative is being taken by the national
party to mitigate the situation (Guthrie 2012). However, in the recent times it is seen that the
party has passed some regulations which the various organizations need to follow. The bikes
are especially designed to curb the pollution of the nation. Therefore, this particular factor is
also likely to act as an opportunity for the retail organization.
Conclusion
An analysis of the macro as well as micro environment in which a particular
organization becomes very important for the concerned organization it gives an idea to the
organization about the factors which they need to take into consideration for the process of
their business. Furthermore, these analyses also give them an idea about the key threats as
well as opportunities which their business is facing.

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References
China.org.cn. 2018. Government_China.org.cn. [online] Available at:
http://www.china.org.cn/english/GS-e/44.htm [Accessed 22 May 2018].
Dreyer, J.T., 2015. China's Political System. Routledge.
Geng, Y., Fu, J., Sarkis, J. and Xue, B., 2012. Towards a national circular economy indicator
system in China: an evaluation and critical analysis. Journal of Cleaner Production, 23(1),
pp.216-224.
Guthrie, D., 2012. China and globalization: The social, economic and political
transformation of Chinese society. Routledge.
Kolios, A. and Read, G., 2013. A political, economic, social, technology, legal and
environmental (PESTLE) approach for risk identification of the tidal industry in the United
Kingdom. Energies, 6(10), pp.5023-5045.
Srdjevic, Z., Bajcetic, R. and Srdjevic, B., 2012. Identifying the criteria set for multicriteria
decision making based on SWOT/PESTLE analysis: a case study of reconstructing a water
intake structure. Water resources management, 26(12), pp.3379-3393.
Tian, G., Chu, J., Hu, H. and Li, H., 2014. Technology innovation system and its integrated
structure for automotive components remanufacturing industry development in
China. Journal of Cleaner Production, 85, pp.419-432.

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