During such periods when economic activity has gone down, the profits and revenue of businesses can go down. PESTEL analysis is a very useful tool that helps business strategists to understand the impact of the macro-environmental factors on their businesses. This political culture of tolerance contributes immensely to maintain a stable political climate which is in fact a very important factor to attract foreign direct investment (FDI). The Constitution of India protects people from discrimination. [6] Due to changes in exchange rates Tesla had foreign currency transaction gains of USD 334 million in 2020. Political issues are not limited to just those discussed above but there are many more. The different income tax structures in various regions, as well as the evolving legal framework in the Asian markets and the US, also give rise to troubles for the leading tech firms whose size makes them a frequent target of government action. Their focus on sustainability, sustainable sourcing, and manufacturing, as well as sustainable processes, has grown. Overall, the US government has developed many initiatives centred on growth. Other relevant articles for you are: PESTEL analysis of China. Other relevant articles for you are as follows: IBEF (2022) About Indian Economy Growth Rate & Statistics, available at: https://www.ibef.org/economy/indian-economy-overview (Accessed 16 July 2022), ONeill, A (2022) India: Gross domestic product (GDP) in current prices from 1984 to 2024, available at: https://www.statista.com/statistics/263771/gross-domestic-product-gdp-in-india/ (accessed 17 July 2022), Outlook India (2022) Corruption Is Rampant In The Lower Courts, available at: https://www.outlookindia.com/magazine/story/corruption-is-rampant-in-the-lower-courts/281457 (accessed 15 July 2022), Trading Economics (2022) India Corporate Tax Rate, available at: https://tradingeconomics.com/india/corporate-tax-rate (Accessed 17 July 2022), Worldometer (2022) India Population, available at: https://www.worldometers.info/world-population/india-population/ (accessed 17 July 2022). PESTEL is a strategic analytical tool and the acronym stands for political, economic, social, technological, environmental and legal factors. A PESTEL ANALYSIS OF THE E-COMMERCE INDUSTRY. China, India, and the United States remain the largest markets for smartphones with the highest number of users. This has implications on both the labour market and the health care system. Over the past twenty years, Nike has made great strides in becoming environmentally conscious and sustainable. Which, in turn, affects the prices of products and services. India is a multi-ethnic, multi-lingual, and multi-religious country. Thanks to the new incentive reform, Tesla is set to regain access to tax credit worth USD 7,000 on 400,000 more electric cars in the US. Standard of living is gradually improving, and the country has a growing middle class with good disposable income. The availability of Zero Emission Vehicle (ZEV) credits in California can be mentioned as another external economic factor with direct implications for Tesla. Moreover, the role of digital technology and smartphones in the lives of people has kept growing. India Footwear Market Overview: Footwear is a type of human-made clothing that surrounds and protects the entire foot, including the soles. Focusing on compliance is vital for operating successfully in various regions around the globe. Indias key exports are petroleum products, jewellery, pharmaceutical products, transport equipment, machinery, and readymade garments to name but a few. In 2019, the U.S.-China trade tensions had begun to escalate when Trump threatened to increase tariffs on Chinese goods including all types of footwear, from sneakers to sandals by 10%. It certainly plays a very important role in global trade and politics. in 2021 and the total revenue is expected to grow at a CAGR of 12.83% through 2022 to 2027, reaching nearly US$ 27.84 Bn. Sitemap, What is PESTLE Analysis? Nike knew who its customers were, what they were about and who they were looking up to. That was a good business decision which has shielded the giant shoe producer against the financial consequences of political power. The government, local councils, newspapers, charities and many others have taken a variety of initiatives to create environmental awareness and reduce the negative impact of economic growth on the environment. Inequality is quite pronounced in the UK and those from poorer backgrounds may find it difficult to keep up with the pace of change in society. Likewise, affordable hotel price, delicious food, incredible wildlife, and wonderful rail journeys are some other factors that many tourists consider while selecting India as their holiday destination. According to estimations by Bloomberg New Energy Finance report, the current price of USD137 per kilowatt-hourfor lithium-ion will drop as low as USD 100 per kWh by 2023. A larger number of people are now shopping using their mobile phones. Its GDP in 2021 was worth around $3.17 trillion (ONeill, 2022). Any industry sector needs a favorable political environment for growth in any market region. 2. Nikes solution: a geographically diverse supply chain. Final Report will add the analysis of the impact of COVID-19 on this industry. Final Report will add the analysis of the impact of COVID-19 on this industry. However, there are a lot of opportunities for organisations to cater for the needs of older population. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, Porters Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on Tesla. China, India, and the United States remain the largest markets for smartphones with the highest number of users. Brands like Amazon have invested heavily in environment and sustainability. The financial services sector also plays a big role in the UK economy. If you liked any of these articles, please feel free to share with others by clicking on the social sharing icons. If you liked any of these articles, please feel free to share with others by clicking on the social sharing icons. Political chaos can result in disruption of online and physical businesses. The PESTEL Analysis is used by marketers to monitor and analyze the macro-environmental factors that affect the organization or industry. Introduction The PESTEL analysis is an essential tool for the management to identify the positive and negative factors that can impact the growth of any company. Google has entered the smartphone industry with its Pixel smartphone. Did the 2008 economical crisis affect the giant sportswear? 7. Samsung, Huawei, and Apple remain the leading players in the smartphone industry. The PESTEL acronym stands for Political, Economical, Social, Technological, Environmental and Legal. Accessible and affordable labour force has encouraged many multinational companies to outsource some of their business operations to the country. Also, it has diversified its supply chain to include manufacturing sites spread in other countries on the Asian continent like Vietnam, Indonesia and Thailand. Yes, it did. It is worth noting that the country witnessed frequent corporate tax rate changes over the years (Trading Economics, 2022). With an advanced IT infrastructure and highly skilled IT work force, it offers enormous opportunities for entrepreneurs to embark upon technological projects such as software development and upgrades, e-commerce, mobile apps, business solutions, and many more. On the one hand, while the growing influence of tech businesses worldwide is an essential concern for governments, on the other, emerging concerns like consumer privacy and data security have also given rise to the need for higher scrutiny. It is a modern parliamentary democracy and a constitutional monarchy with the monarch (Currently Queen Elizabeth II) being the Head of State. Environmental factors too have a special importance in the context of Ecommerce industry. PESTEL Analysis. Smartphone businesses study these trends to know peoples preferences and bring models to the market which cater more efficiently to peoples needs. Government agencies have also tightened the regulations related to the environment. PESTEL business analysis is a framework for helping entrepreneurs and business people to understand the impact of macro-environmental factors on their business. The global smartphone industry generated around $522 billion in revenues in 2018, despite a slight decline in overall demand. Technological factors play a central role in the growth of the smartphone industry. However, the UK is falling behind the USA, South Korea, India, Japan and some other countries in technological development. A key element of this PESTEL analysis of India (Country Profile) is the economic environment. China is a powerful country, and in recent years there is rapid development in their economy. A Pestel analysis of the smartphone industry. China and US are the largest of the e-markets. In 2019, the U.S.-China trade tensions had begun to escalate when Trump threatened to increase tariffs on Chinese goods including all types of footwear, from sneakers to sandals by 10%. It also has a long legal history with Adidas over patent infringements. Government incentives for electric vehicles, Government incentives to promote vehicles run by alternative fuel due to negative environmental implications of CO2 emissions is a noteworthy political factor for Tesla. Businesses are now called to account for any negative impact their operations have on the environment. Dyson SWOT Analysis: Strong R&D, Weak International Presence. All rights reserved LCHW. However, growth rate is expected to be even higher than US in the Asia Pacific region. The trade war between the US and China is affecting nearly all the large technology firms in the US and China. Looking forward, IMARC Group expects the market to reach 221.8 Million Units by 2027, exhibiting a CAGR of 3.59% during 2022-2027. The country has grown rapidly and emerged as an engine for growth for the global economy. 3M SWOT Analysis: Operations Too Much Diversified? However, its dispute with Pakistan over Kashmir has been an issue of grave political uncertainty. India is the second largest country in the world by population, and it is on course to become the No. However, the global lockdowns in 2020 and 2021 put enormous pressure on the treasury and destroyed many businesses across different industries. https://www.bbc.co.uk/news/world-europe-18023389, https://taxsummaries.pwc.com/united-kingdom/corporate/taxes-on-corporate-income, https://www.worldometers.info/world-population/uk-population/, Effects of government intervention in markets. Nike shoes are manufactured in 36 factories in the US by 5151 workers. Complete version of Apple PESTEL analysis containing discussion of remaining factors in available in Apple Inc. Report. It is because economic factors are directly related to business and their effect is also direct on business revenue and profits. Such issues can be a threat to the growth of ecommerce in Europe and it is why several sources predict that the growth rate of ecommerce in Europe is going to be low. We hope you like this PESTEL analysis of India (Country Profile). Births continue to outnumber deaths and the population is expected to reach 74 million by 2039. Covid-19 has caused economic activity to decline in several leading markets of the world, including the western and the Asian markets. Nike Fit uses a proprietary combination of computer vision, data science, machine learning, artificial intelligence and recommendation algorithms to find your right fit. Notesmatic uses cookies. This chip provides higher performance and better processing speed. Its top imports are cars, gold, refined petroleum, broadcasting equipment (OEC, 2022). The technological factors have also supported the growth of the Ecommerce industry. In several cases, high smartphone use has been associated with psychological harm. There are several risk factors affecting the e-businesses. EU has kept targeting technology giants from the US. Tesla PESTEL analysis involves the analysis of potential impact of these factors on the long-term growth prospects of the alternative fuel vehicles manufacturer. The political factors help the entrepreneur appraise the degree to which a government intervenes in the economy or a certain industry and how its decisions affect the present and the future of the company. Technology sector is a major contributor to the UK economy. The smartphone industry relies mainly on technology for growth. Competition in the smartphone industry has kept growing intense which has led to higher focus upon quality and user experience. PESTEL is a strategic analytical tool and the acronym stands for political, economic, social, technological, environmental and legal factors. The impact of this factor is positive and so far Tesla was able to benefit to a maximum extent. 7. China and US are the largest of the e-markets. Consumer privacy, as well as data security, are some of the leading concerns attracting the greatest attention from government agencies. For instance, Tesla has been hit by trade war between the US and China under Trump administration to a considerable extent. Some analysts believe that Brexit has already created a big chaos, whereas others believe it has opened doors to immense opportunities for the country as well. The smartphone industry is experiencing intense competition, and maintaining market share requires more focus on technology than ever. However, the rate is going to be 25% for the financial year beginning 1 April 2023. In this way, economic factors can have a direct and deep impact in the ecommerce industry. In a tax-related case in the EU, Apple paid around $15 billion. Like any other business, the Covid-19 pandemic has been bad for H&M as well. China is a powerful country, and in recent years there is rapid development in their economy. The economic situation has a direct impact on several important factors like employment, poverty and overall purchasing power of consumers. The global athletic footwear industry is expected to rise to an estimated value of USD 96.10 billion by 2026 so the competition within the market is fierce. 1. Governments around the world have made stricter laws related to the environment, and businesses need to focus on sustainability to remain compliant with these laws. The management of a company uses PESTEL analysis to weigh the factors that can hinder or promote the industry's growth. And. An Important Business Analysis Tool, Walgreens SWOT Analysis: Startling Brand Found in Soaring Competition, Aldi SWOT Analysis: Hidden Threats for the Discount Retailer, 5 Ways You Can Improve Relationships With Customers. Growth in foreign markets can be full of challenges. The corporate tax rate in India is 25.17%; however, it is forecast to increase soon. If you liked this article, please share it to support our educational services. Therefore, the Bank of England pumped an extra 100 billion into the economy in 2020. A key element of this PESTEL analysis of India (Country Profile) is the economic environment. In the late 1980s, the company has been taken to court for failing to disclose poor working conditions. BRAND MINDS 2023: Nassim Taleb, James Clear, Rene Mauborgne, Duncan Wardle, Lynda Gratton + 2 more speakers to be announced soon. There are several factors driving demand in the smartphone industry including changing consumer lifestyles, technological innovation, and the proliferation of internet-based services that can be accessed easily through smart devices. Looking forward, IMARC Group expects the market to reach 221.8 Million Units by 2027, exhibiting a CAGR of 3.59% during 2022-2027. In many cases, young people do not even know when to put their cellphones away. While the direct environmental impact of this industry is very low, it still focuses heavily on sustainability. It along with related sectors such as accounting, and law employ over 2 million people across the country. September 9, 2018 July 6, 2021 / By Abhijeet Pratap. In the US, for example, the shoe companies pay as much as 25% in tariffs, one of the highest duties compared to other industries. Law and legal factors are now of paramount importance in the entire technology industry for successful global operations. Communal harmony is a great strength; however, it sometimes witnesses tensions in ethnic lines. According to the industry research website Gartner, the sales of smartphones to end users declined by more than 20% during the first quarter of 2020. Nike: reflect your customers values and beliefs. Expatriates may sometimes find it difficult to live under some of these environmental challenges. Tesla Inc. Report contains a full version of Tesla PESTEL analysis. The country has grown rapidly and emerged as an engine for growth for the global economy. Summary of the PESTEL analysis of China (Country Profile) To sum-up, there are several macro factors that offer China both opportunities and challenges. Also, graduated from Leeds Metropolitan University with a BA in Business & Management Studies and completed a DTLLS (Diploma in Teaching in the Life-Long Learning Sector) from London South Bank University. Likewise, the recent Citizenship (Amendment) Act has led to mass protests and violence in many states of the country. 2021. It has recently signed several free trade and other agreements with some of its trading partners. Nikes solution: an ongoing digital strategy. Apart from Amazon, Ebay and Alibaba, there are a number of important players in the market like Walmart, Coles and Best Buy. During the global financial crisis, spending had decreased. 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