Marketing Strategy of Pollution Eating Bikes in UAE: A PESTEL Analysis

This report presents a marketing strategy analysis for pollution-eating bikes, focusing on the United Arab Emirates (UAE) market. The report begins with an executive summary and a table of contents, followed by an introduction to the PESTEL framework, which analyzes political, economic, social, technological, environmental, and legal factors. The core of the report applies the PESTEL model to assess the UAE's environment for the introduction of these bikes, considering political stability, economic diversity, and environmental challenges such as pollution. The report highlights the strengths and weaknesses of the PESTEL model, and provides recommendations for the Chinese organization planning expansion into the UAE market, emphasizing opportunities related to the country's stable political and economic environment and the pressing need to address environmental issues. The report concludes with references to support the analysis and recommendations, positioning the pollution-eating bikes as a viable solution for the UAE's environmental concerns.

Running head: MARKETING STRATEGY OF POLLUTION EATING BIKES
MARKETING STRATEGY OF POLLUTION EATING BIKES
Name of the Student
Name of the University
Author Note

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MARKETING STRATEGY OF POLLUTION EATING BIKES
Executive Summary
The report has been written as the review of the marketing environment for the
pollution eating bikes in the United Arab Emirates. The report is mainly based on the
compilation of the analysis of the external environment where the company is
planning expand with the help of the PESTEL framework. The PESTEL framework is
mainly used by the organizations to analyse the external factors that can affect the
successful operations.
UAE has thereby proved to be a good option for the expansion related plans that
have been made by the Chinese organization. The main reason behind the choice of
this organization is the high level of acceptability of the products that have been
manufactured by the company. The country can also provide chances for growth of
the company with the help of the strong economy. The political and economic
environment of the country is stable and The environmental condition of the country
has provided opportunities for the successful operations of the Chinese organization.
The recommendations that have been provided to the company will also help in the
success and growth of the company.

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Table of Contents
1.Introduction of PESTEL..................................................................................2
2.PESTEL Analysis the model...........................................................................3
3.Strengths and Weaknesses of PESTEL.........................................................5
4.PESTEL Analysis of United Arab Emirates....................................................5
5.Recommendations..........................................................................................9
6.References....................................................................................................11

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1.Introduction of PESTEL
The report will be based on the determination of the decision of the entry of
Pollution Eating Bikes which are produced by a Chinese organization in the United
Arab Emirates. The decision will be mainly related to the analysis of the external
environment of the country in which the organization is about to operate. The term
PESTEL stands for the various factors related to the external environment which
affect the operations or expansion of an organization. The factors are mainly,
political factors, economic factors, social factors, technological factors,
environmental factors and legal factors (Fleisher and Bensoussan 2015). The
PESTEL framework is used by organization to analyse the effect that the situation in
the country can have on the operations and profitability. This analysis further helps
the organizations to take decisions regarding the future operations in the country
where it is planning to expand its operations.
2.PESTEL Analysis the model
Political – The political factors of an organization mainly help in determining
the extent up to which the government of that country is able to influence the industry
in which it is operating or the ways in which it influences the economy. The duty or
tax that is implemented by the government on the various organizations or industries
have an influence on the entire revenue structure. The tax policies, trade tariffs,
fiscal policies that are levied by the government are a part of the political factors
(Wheelen et al. 2017).
Economic – The economic factors are mainly the determinants of the
performance of the economy of the country which can impact the organization
directly and has huge long term based effects. The rise in inflation rate can also

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cause changes in the prices of the services and products that are offered by the
organization. The buying power of the consumers is also affected by the changes
that occur in the supply or the demand models. The inflation rate, foreign exchange
rates, economic growth and the interest rates are part of the economic factors.
Social – The social factors are mainly based on the ways by which the social
environment can be scrutinized and the determinants like, demographics, social
trends and the population analytics can be determined (López-Gamero and Molina-
Azorín 2016).
Technological – The technological factors are based on the innovations that
take place in the latest technologies which are able to affect the operations of market
or the industry in a favourable or unfavourable manner. This includes the processes
based on automation, development and research.
Environmental – The environmental factors include those which are able to
influence the external environment. This aspect can be crucial for various industries
in which the organizations wish to expand (Wirtz et al. 2016).
Legal – The legal factors are based both on the internal and the external
sides of the organizational operations. The laws framed by the government of the
country where the organizations operate affect the ways by which the regulations of
these companies can be framed (Sieweke, Köllner and Süß 2017).
3.Strengths and Weaknesses of PESTEL
Strengths
 The model provides a simple
framework which can be used for
the analysis of the external
environment in an effective
manner.
Weaknesses
 The costs that are related to the
analysis of the environment of
the organizations cannot be
carried out on a regular basis.
The reason is that it can incur

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 The organizations are able to
detect the opportunities and the
threats that they can face in the
external environment.
 The future trends in the market
can also be determined with the
help of this model (McLean and
Zhao 2014).
high costs for the organization.
 The analysis can also be biased
in nature and this requires
different people to conduct the
same (Titus Jr., House and Covin
2017).
4.PESTEL Analysis of United Arab Emirates
The pollution-eating bikes are in the process of development by an
organization which is based in Beijing. This initiative was taken by Daan Roosegrade
who is a Dutch artist and designer. The aim of this project is to build a bicycle which
can help in the reduction of pollution in the air as it will be able to absorb the pollution
and pump clean air. The organization is thereby planning to launch the product in the
United Arab Emirates for which the external analysis of the environment is necessary
(Zetlin-Jones and Shourideh 2017). The factors of the PESTLE framework which will
be considered in this analysis are the political factors, economic factors and the
environmental factors.
Political factors -
The political system of UAE is constitutional federation which is based
on the constitution that has been formed by the government. The entire
political system is mainly based on the constitution which provides the
rules and the policies that need to be followed by the organizations
which operate in the environment (Ortiz, Donate and Guadamillas
2017).
The political system of the country has been developed a lot in the past
few years and the government has taken steps regarding the ways by

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which the population of the country can cope with the challenges that
are related to global development. The Chinese organization will be
able to enter the country with the help of the opportunities that are
provided by the government.
The foreign policies that are formed in UAE are based on belief related
to the need of justice in the various international dealings. The flexible
foreign policies that are formulated in the country are helpful for the
entry of the pollution eating bikes in UAE (Eberlein et al. 2014).
The country does not have any political parties and in spite of that the
government plays an important role in the international politics. The
performance of the states has not been influenced by the interests of
the political leaders. This has been a major reason behind the success
and the growth of the organizations in the industry (Shtal, Bondarenko
and Yarkovyi 2017).
Economic Factors –
The economy of the United Arab Emirates is second largest among the
Arab countries after Saudi Arabia. The GDP of the country has been
calculated to be 403.2 billion dollars in the year 2014. The economy of
the country is diversified in nature and relies on the production of
petroleum. The production of natural gas and petroleum has played a
major role in the development of the economy of the country. The
Chinese organization will be facilitated by the flexible and diverse
economy of the country. The organization will be able to develop its
operations with the help of the support that is provided by the economy
(Roche and Conti 2018).

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The market of UAE has been most dynamic in the world and has been
placed among the largest exporters in the world in commodities. China
has been a major partner of UAE in the import and export related
activities. This will be a positive factor for the entry of the Chinese
organizations in the world.
The initiative related Emiratisation is a major initiative that has been
taken by the UAE government related to the employment of UAE
nationals in the private and public sectors of the country. The entry of
the Chinese organization in UAE will help in increasing the chances of
employment in the country (Spieth, Schneckenberg and Ricart 2014).
Almost 37% of the entire gas and petroleum industry of the Arabian
countries is a present in the UAE. The government of the country has
been injecting funds in the various sectors. The investment of the
government will be helpful in the improvement of the operations of the
Chinese organization in the country.
The economy of UAE is considered to be open in nature and has
welcomed the different organizations from various countries towards
the country. This can be a major attraction for the Chinese organization
(Navarro-García, Arenas-Gaitán and Rondán-Cataluña 2014).
Environmental factors –
The major environmental issues have been caused in the United Arab
Emirates due to the huge amounts of exploitation of the natural
resources. This has been a major reason behind the successful entry
of the Chinese organization in the country.

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MARKETING STRATEGY OF POLLUTION EATING BIKES
The rapid growth of population also has an impact on the environment
of UAE as the demands of energy have been increasing with a rapid
pace.
The rise in the temperature of the country due to global warming has
also affected the environment to a large extent. This has created an
opportunity for the organization to launch the pollution eating bikes in
the country so that the pollution and global warming levels can be
reduced (Kuratko, Hornsby and Hayton 2015).
Global warming and extreme levels of pollution in the air have affected
the health related conditions of the citizens of the country. The
implementation of the pollution eating bikes can be helpful in reducing
the pollution levels to protect the health of the citizens of the country.
The operations of the oil industry in the country has made UAE one of
the largest contributors in the emission of greenhouse gases. The
emission levels of carbon dioxide have also been high in the country.
This has further increased the opportunity and need for the entry of the
pollution eating bikes in the country for the reduction of the high levels
of pollution (Katz, Du Preez and Louw 2016).
The boom of the oil industry in UAE has increased the levels of
pollution and emission of harmful gases in the country. This factor has
been a major force towards the entry of the pollution eating bikes in the
country.
The emissions of carbon dioxide in UAE has increased from the year
1990 to the year 2008. The demand for energy has also increased due

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to the increase of the population levels (Kuratko, Hornsby and Hayton
2015).
The high levels of coastal urbanization due to the boom that has been
experienced in the oil industry has also increased pollution levels. The
usage of pollution eating bikes in these areas will prevent the pollution
that can be caused in the atmosphere surrounding this area.
5.Recommendations
The analysis of the environmental factors that has been made in the report
has been to able recommend that the pollution eating bikes can be taken to the
United Arab Emirates as a part of the future plans due to the following reasons,
 The employment of local people in the organization will help in the fast
development of the area.
 The investment that will be made by the Chinese organization will be
protected by the regulations that are formed by the government of
UAE.
 The high increase in the population levels of the United Arab Emirates
due to the fast growth of the oil and gas industry has provided a major
opportunity to a product like the pollution eating bikes.
 The strong economic condition of the country needs to be exploited by
the organization by making more and more people accept the product
that is being offered by the company in the market.
 The acceptance levels of the citizens of the United Arab Emirates
towards the new products that are offered by organizations has been a
major opportunity.

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 The increase in the population in the coastal areas can provide
chances to the Chinese organization to provide the products in these
areas.
 The help that is provided by the government of the country towards the
establishment of new products can be an opportunity for the Chinese
organization.
 The organization can launch the product successfully in this country as
the people have the capability and buying power to purchase the
pollution eating bikes for reducing the levels of pollution as they travel
for work in their daily lives.
 The huge urban population of the United Arab Emirates can be helpful
in the increase of the profitability and revenues of the organization in
the country.
 The organization will be capable in providing huge opportunities to the
country related to the reduction of the levels of pollution in the air with
the absorption power of the pollution eating bikes.
 The ways by which the bikes are able to provide fresh air after
absorbing carbon dioxide will help in the improvement of the
environmental condition of UAE.

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6.References
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Transnational business governance interactions: Conceptualization and framework
for analysis. Regulation & Governance, 8(1), pp.1-21.
Fleisher, C.S. and Bensoussan, B.E., 2015. Business and competitive analysis:
effective application of new and classic methods. FT Press.
Katz, B.R., Du Preez, N.D. and Louw, L., 2016. Alignment of internal and external
business and innovation domains. South African Journal of Industrial
Engineering, 27(1), pp.61-74.
Kuratko, D.F., Hornsby, J.S. and Hayton, J., 2015. Corporate entrepreneurship: the
innovative challenge for a new global economic reality. Small Business
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López-Gamero, M.D. and Molina-Azorín, J.F., 2016. Environmental management
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McLean, R.D. and Zhao, M., 2014. The business cycle, investor sentiment, and
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Business Research, 67(5), pp.740-745.
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MARKETING STRATEGY OF POLLUTION EATING BIKES
acquisition. European Journal of Management and Business Economics, 26(1),
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Roche, M.P. and Conti, A., 2018. Necessity Never Made a Good Bargain: External
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