Automobile Industry Pest Analysis

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Internal and External environmental audit of UK automobile industry using PESTEL, SWOT and Porter’s Five Forces Analysis. Objective The idea behind this study is to analyse the automobile industry in UK, based on the external environment audit proceeded through PESTEL and Porter's five forces analysis and the internal environmental audit with the focus on various brands, technical adaptation, markets etc. SWOT analysis, however, will be based on comprehensive competition procedure adopted by such industry. Òverview The UK car manufacturers have set the highest number cars on road as compared to last 10 years and have grown to 3.9% i.e. 1,587,677 wagons. The car export scaled up to 2.7% from preceding years and exported about 1,227,881 vehicles.…show more content…
These external enviornmental factors are: Political, economical, social, technological and legal. The automobile industry operates on the basis of manufacturing unit, retail and supply chain unit, sales and services etc. The industry carefully read the six PESTEL segments to work on the oppotunities and risks and work out their strategies. Political Segment: It talks about the influence of goverment in building the industry. This includes tax policies, trade regulations and tax duties, enviornmental do's and don'ts and immigration setup. Now for instance the enviornmental parameters restricts the emission of gasoline and diesel based vehicles as it can pollute the enviornment and cause health hazard. To control such damage, the Euro 4 emission standards restricts the emission limit for each vehicles in each areas. Also there is a constant support from goverment in production of enviornment friendly vehicles. In UK, the fuel tax is higher than any other country and people pay fuel tax to the…show more content…
Wiith the intent of brand acquistion technique, the organisations can further establish themselves well in the market and can also leverage on the market share of that particular brand. Value chain analysis refers to a systematic succession of activities that helps to form organisational structure and the competitive resources preferences towards the development. For instance, Toyota motors, for proper procurement of raw materials, maintain a healthy relationship with the suppliers and get their raw materials with Just in Time approach. SWOT analysis Where S stands for strength, W for weaknesses, O for opportunities and T for threats. Strengths Industry of growth, an evolving sector that contributes economic success and independence. Continuous products innovations which includes sports cars, eco friendly cars, fuel efficiency cars (Shell, CNG etc.) , vehicles with renewable energy (Solar, wind etc.) Goverment aids in major projects/ proposal Manufacturing of luxurious commercial vehicles such as volvo, chrysler etc. Weaknesses Calling off vehicles due to technical hindrance or goverment disapproval High cost

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