International Marketing Analysis: India PESTEL Analysis

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BUSINESS INTERNATIONAL MARKETING A
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Table of Contents
Introduction...................................................................................................................... 3
Analysis............................................................................................................................3
Recommendation.............................................................................................................8
Reference list................................................................................................................... 9
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Introduction
In order to expand business in the global context, it is necessary for the organisation to
measure the business environment of the new country. If the ventures are aware of the
scenario of the new country, where they want to expand their business, they can
develop the effective marketing strategy. In time of analysing the business environment,
few factors need to be considered such as political, economical, social, technological,
legal and environmental factors. By analysing these factors, the companies are able to
understand the changes of the market and they can take proper strategy for earning
success. In order to conduct the report, India will be selected. Thus, positive and
negative impacts of the country will be analysed and recommendation will be included
so that new ventures forecast their profit from this market.
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Analysis
Elements Factors Analysis
Political  Parliament system is
followed
 After succession of
Bharatiya Janta Party (BJP),
largest democracy is noticed
(Theasian.asia, 2019)
Though largest
democracy is monitored
in India, political
instability is found. As
per the viewpoint of
Gupta and
Mukhopadhyay (2016),
political instability
affects the business
environment of the
country.
63% of bureaucracy
and 18% of corruption
have been found and it
leaves negative impact
on the business of India
(orfonline.org, 2019).
Economical  In India, 8.2% of GDP
growth is observed
(economictimes.indiatimes.c
om, 2018)
The GDP rate of India is
increased and it
indicates the economic
stability of the country.
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 Exchange rate of India is
low. £1 is equal to Rs.
86.21 (xe.com, 2019).
It is quite common that
if the sale of ventures
under private sector is
increased, the GDP rate
is developed.
Therefore, it can be
deduced that business
organisations can
expand their business
in this country for
earning profit from the
market.
On the other hand, high
exchange rate is
monitored. Therefore, if
the UK companies
expand their business
in the India, the cost of
products will be high.
Hence, if they do not
improve quality of their
products, it can leave
negative impact on
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business.
Social  Unemployment rate was
around 6.1% as per the
assessment of 2018
(economictimes.indiatimes.c
om, 2018)
 As per the report of 2018,
55% of people belong to the
poverty lane (brookings.edu,
2019).
As unemployment rate
in India is high, it raises
question about the
success of the
business. Moreover,
India holds third
position as a poverty
country in the world
(brookings.edu, 2019).
Therefore, if the new
companies do not
develop effective
strategy, they will not
be able to earn profit
from the Indian market.
Technological  Around 627 million people
use internet
(economictimes.indiatimes.c
om, 2019)
 IoT, virtual reality, touch
commerce are the popular
technological trends in India
In context of
technological
department, it is found
that most of the people
use internet. Therefore,
during business
expansion, new
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companies can easily
communicate with the
customers (Stewart,
2016). Thus, they are
aware of the
requirement of the
customers. It helps to
the companies to earn
profit from the new
market by developing
required products.
On the contrary,
technological trends
help the operate
business successfully.
The online shopping is
the popular trend and
companies need to
utilise it for selling their
products. Thus,
positive outcome can
be achieved.
Legal  In case of company is able In order to expand
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to earn more than Rs.
500000, they need to
provide 20% of income tax
(hdfclife.com, 2018)
 In case of income of venture
exceeds Rs. 1000000, 30%
of income tax need to be
provided (hdfclife.com,
2018)
business in the India,
the company needs to
huge amount of tax to
the government.
Therefore, if sale of the
venture is not
increased, it can leave
negative impact on the
business, which
expands their business
in this country.
Environmental  8.5% children died for air
pollution (cseindia.org,
2018)
As air pollution is high
in India, business
organisations need to
be aware of their
production process. In
time of operating
business in India, they
need to take care of the
environment so that
they can earn positive
outcome from the
Indian market.
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Table 1: PESTEL analysis
Recommendation
 It is recommended to the business ventures to hire employees from India for
reducing its unemployment rate. In return, it will also help to increase the profit of
the venture
 Job opportunity should be provided to the people, who are under poverty lane. It
will help the company to sustain their position in the Indian market.
 As SME sector will expand their business in India, they need to develop products
as per the requirement of consumers. Thus, profit can be developed from the
market.
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Reference list
brookings.edu 2019, Poverty lane in India, Available at:
https://www.brookings.edu/blog/future-development/2018/12/13/rethinking-global-
poverty-reduction-in-2019/ [Accessed on: 15th March, 2019]
cseindia.org 2018, Air pollution in India, Available at: https://www.cseindia.org/air-
pollution-kills-an-average-8-5-out-of-every-10-000-children-in-india-9460 [Accessed on:
15th March, 2019]
economictimes.indiatimes.com 2018, GDP Rate in India, Available at:
https://economictimes.indiatimes.com/news/economy/indicators/indias-gdp-grows-at-8-
2-per-cent-in-2018-19-q1/articleshow/65623967.cms?from=mdr [Accessed on: 15th
March, 2019]
economictimes.indiatimes.com 2018, Unemployment rate, Available at:
https://economictimes.indiatimes.com/jobs/indias-unemployment-rate-hit-6-1-in-2017-
18/articleshow/69598640.cms?from=mdr [Accessed on: 15th March, 2019]
economictimes.indiatimes.com 2019, Internet Users, Available at:
https://economictimes.indiatimes.com/tech/internet/internet-users-in-india-to-reach-627-
million-in-2019-report/articleshow/68288868.cms?from=mdr [Accessed on: 15th March,
2019]
Gupta, B. and Mukhopadhyay, A., 2016. Local funds and political competition: evidence
from the National Rural Employment Guarantee Scheme in India. European Journal of
Political Economy, 41, pp.14-30.
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hdfclife.com 2018, Tax rate in India, Available at: https://www.hdfclife.com/insurance-
knowledge-centre/tax-saving-insurance/latest-income-tax-slab-and-deductions-fy-2018-
19 [Accessed on: 15th March, 2019]
orfonline.org 2019, Political Instability in India, Available at:
https://www.orfonline.org/expert-speak/political-risk-to-companies-in-indias-elections-
insignificant-49342/ [Accessed on: 15th March, 2019]
Stewart, F., 2016. Technology and underdevelopment. Springer.
Theasian.asia 2019, Political situation, Available at:
http://www.theasian.asia/archives/101905 [Accessed on: 15th March, 2019]
xe.com 2019, Exchange rate between UK and India, Available at:
https://www.xe.com/currencyconverter/convert/?Amount=1&From=GBP&To=INR
[Accessed on: 15th March, 2019]
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