Report: Pestle Analysis for a Self-Driving App in the UK Market

This report presents a Pestle analysis, a strategic tool used to evaluate the macro-environmental factors impacting the potential launch of a self-driving app in the UK market. The analysis examines political, economic, social, technological, environmental, and legal factors. Political considerations include Brexit's impact and government regulations. Economic factors address the UK's recession, unemployment rates, and disposable incomes. Social aspects focus on the younger generation's preferences. Technological factors highlight the use of innovative app-based services. Environmental factors consider resource conservation, and legal factors emphasize compliance with employment and safety regulations. The report concludes that considering these factors is crucial for gaining a competitive advantage and ensuring the long-term success of the self-driving app in the UK market. The report also includes references to relevant academic sources.

Pestle analysis
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TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
Pestle Analysis.............................................................................................................................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6
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INTRODUCTION
Macro environment included all such external factors that are present in environment
which impact on business operation and performance adversely. Thereby they need to be
considered by each and every enterprise that needs to introduce new products, ideas, innovation
to grow and sustain its business in the industry. This report is about launch of app that provides
opportunity to people of UK to self drive their vehicles. Therefore pestle analysis model is used
to indentify various factors that impact establishment and smooth operation of business in UK
market.
Using of app to provide self driving services is a long term business as company is using
innovative technology and ideas to satisfy need of customers. Company can raise capital through
joint venture, capital investors that have high knowledge about industry or tale loan from bank.
Market of self driving service is large as most of the younger generation wants to have self drive
while going from one place to another (Adrian, 2017). The business can grow fast approximately
4-5 months as new and innovative technology is used to cater need of younger generation.
Pestle Analysis
It is strategic powerful tool that is used by most of the firm to prepare appropriate
strategies and plans so that it can gain competitive advantages and expand its business across
nation. Pestle analysis evaluates various factors such as economic condition, policies of
government, preference of people, innovation and development in technology and various laws
of UK that need to be considered by organisation while performing various activities (Avital,
2017).
Political Factors: Rules and regulation of government impact adversely on strategy and
operation of every enterprise so that need considered by firm for effective operation of business.
Self driving vehicle is an innovative and new business so it should follow rules of government
while making apps. Such as due to Brexit import and export of products have been decreased so
company has opportunity to create market of self driving vehicle using App in UK so that people
can drive vehicle by their own and effectively perform their function.
Economical Factors: Due to Brexit economic of UK is undergoing recession, rate of
unemployment is also rising at rapid rate and disposable incomes of customer have been
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decreased, low investment rate. Therefore launching of innovative ideas such as use of app to
delivery of self driving services to customers helps in establishment of business at minimum cost
or investment. At the same time it helps in generation of number of employment, increase in
disposable income of people thus promotes economic growth. Company at initial stage need to
provide services at reasonable cost due to low disposable income, economic growth of UK thus it
will help in gaining competitive advantages and increasing market share.
Social Factors: It is another factor that needs to be considered by enterprise to satisfy needs and
wants of customers as they tend to change rapidly. Another reason is that every company is
established to provide qualitative products and service to customer for growth and expansion of
enterprise. Thus, while establishing app for offering self driving services need of people living in
the society has to be identified for effective operation of business. Demographical structure of
UK also state that there are large number of younger generation that likes to ride their own
vehicles so launch of such idea will be effective to provide better customer experience (Caporale,
Karanasos and Yfanti, 2019). Providing service through use of innovative technology such as
development of App is another advantage as it helps in attracting large number of customer –
younger generation within limited time and cost. Therefore helps in increasing sales volume and
profitability in less time and effort with maximum return in terms of high customer satisfaction
and retention.
Technological Factors: Technologies in the environment keeps on changing so that various
work can be performed in effective manner that is within limited wastage of resource and efforts.
Idea to establish a business of self driving vehicle through use of innovative technology will help
in maximising customer satisfaction and profitability of company. It can attract large number of
younger generation to prefer products and service of company over other competitors in the
industry. Use of App to provide information to people about company products, services and
various price charged for particular ride help customer to easily choose a particular service from
number of range (Mokas and Nijskens, 2019). Most of the young people like to make purchase
products through such innovative app as they can easily choose particular services while staying
at their homes. Thus, technological innovation and product development helps in providing best
customer experience and helps in expansion of business for long run.
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Environmental Factors: Conservation of resource that are available in environment is
necessary as they are in limited quantity so need to be preserve for growth and development of
economy. Due of innovative technology in delivery of products and service helps in effective
utilisation of available resource in terms of wastage of resource and efforts. App is best method
to provide services of self driving vehicles as it conserver wastage of time and energy to tackle
large number of customer in minimum time limit. Electric vehicles can also be provide to people
in order to conserve resource in the environment and ensure better health and safety of people.
Legal Factors: It is last factors that state various laws need to be followed by company to ensure
health and safety of employees and customers of firm. Company should follow all rules such as
employment law, health and safety of people, provide clear and accurate information regarding
policy and procedure of App and service render to customers (Khalifeh and Ndiili-Ronkainen,
2019). Implementation of laws helps in effective operation of business and building strong brand
image in minds of customer and employees.
CONCLUSION
From the above report it can be concluded that various factors of macro environment
needs to be considered while implementing new ideas, innovation in particular market segment.
Customer need and technology keep on changing so they need to be updated by firm to gain
competitive advantages in the industry.
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REFERENCES
Books and Journals
Adrian, T., 2017, August. The Term Structure of Interest Rates and Macro-Financial Dynamics.
In speech at the Bank of Canada Conference on Advances in Fixed Income and Macro-
Finance Research, Vancouver, August (Vol. 17).
Avital, D., 2017. Gender differences in leisure patterns at age 50 and above: micro and macro
aspects. Ageing & Society, 37(1). pp.139-166.
Caporale, G. M., Karanasos, M. and Yfanti, S., 2019. Macro-Financial Linkages in the High-
Frequency Domain: The Effects of Uncertainty on Realized Volatility.
Khalifeh, A. and Ndiili-Ronkainen, H., 2019. MNC´ s strategy implementation:: Macro-level
factors of Customer Relationship Management in Emerging Markets.
Mokas, D. and Nijskens, R., 2019. Credit risk in commercial real estate bank loans: the role of
idiosyncratic versus macro-economic factors.
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