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Scooter Industry

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  • Feb. 8, 2012
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International Marketing

Introduction In modern business it is extremely important for companies to have wide variety of tools, which enable them to analyse their environment and their markets. Most commonly used tools are PEST analysis, SWOT analysis and Porter’s Five Forces. In this case the most appropriate tool is PEST analysis which can be further extended to PESTEL. Other variations such as SLEPT, PESTLE, STEEPLE and STEEPLED are also possible. SWOT analysis and Porter’s Five Forces require more specific information about the actual company and its market, but in this case this information is not available. Brooks et al. (2004), say that PEST acronym stands for Political, Economic, Legal, Social and Technological environmental factors that influence the companies day-to-day activities. Further extending it to PESTEL adds Legal and Ecological factors. PEST analysis is therefore useful tool which is used for analysing market environment. It is also very useful for business and strategic planing, marketing planing, product development and research reports. Doing PEST analysis prior to doing SWOT analysis can be beneficial, as all of the PEST factors are essentially external, wheres factors in SWOT analysis are both external and internal. SWOT analysis focuses more on business unit itself, but PEST analysis gives information about market attractiveness, business potential and information about market in general. Kotler (1998) says, that PEST analysis is a useful strategic tool for understanding the market growth or decline, business position, potential and direction for operations. Scooter industry analysis will be carried out with the help of PEST analysis, due to the word limit constrains some environmental issues will be added to other sections. Some factors have greater impact on the global demand for this product than others and will therefore be covered more in detail. Political Political factors include laws, tax policies, trade barriers, regulations,...