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Pestle for the Volkwagen Golf and Sony Xplod

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Introduction

PESTLE analysis 1. Political factors There are several aspects that should be taken into the consideration. The overall economic situation in the world and in specific regions can take a significant role in a political decision making in any country. For example, the economic downfall in Greece and Spain might influence policies of other European countries which might take new restrictions. The tax policy is another important factor in this context. In Europe the average standard VAT rate is around 20%. Increasing or decreasing the tax rate in any country can increase or decrease the costs of producing and distributing the product. If the production costs increase the price of the product will increase as well and it can have a negative impact on sales and revenue. The environmental policy will definitely increase its impact in the future due to global warming and decreasing natural resources. ...read more.

Middle

However, there are still a lot of people who would be interested in this product and who could afford it. The producers have to take into consideration the economic development of each region before entering it. If the financial policy of a country is too weak, it can lead to a growing inflation rate. It can make the car too expensive to sell and to stay profitable. The car has to become more fuel efficient in the future so it becomes more financially attractive a bigger target group. More people choose to use public transport due to increasing fuel costs. 1. Social factors According to the latest information on car trends, people still pay a lot of attention to the car safety as well as the technological aspects of the car. (Job, 2012) This new VW Golf will have exactly what people want ? safety and new technologies. ...read more.

Conclusion

Both companies are already looking for new ways how to use resources and finding ways to a more efficient producing of goods. In a case of a success the production might become cheaper and the overall costs can get lower. 1. Legal factors Legal factors include discrimination law, consumer law, antitrust law, employment law, and health and safety law. Getting local licences or working permission, might affect the timing and increase costs of production. 1. Environmental factors By a dramatical change of the weather people will choose cars that are more safe and resistant against different climate catastrophes, for example, storms, earth quakes and flood. The second scenario is that people choose cheaper and simpler cars because in case of a natural catastrophe the financial loss will be less than by having a more expensive car. The growing awareness of the potential impacts of climate change might affect ways of transportation. More people might choose alternative ways of transport, for example, bicycles or public transport. ...read more.

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