Free Essay

Pestel Analysis Royal Enfield

In: Business and Management

Submitted By jerman90
Words 619
Pages 3
. PESTLE analysis of the motor bikes industry in UK

PESTLE analysis{Palmer Clive }of motorbike industry sector investigates the important factors that are affecting the industry and influencing the companies operating in that sector. It is also perfect tools for mangers and policy makers of motorbike industry,helping them to analyzing the factors which are affecting while driving their industry to different countries of the world. Throughout the last few year,the acronym PESTLE has been suffering a numbers of changes,but it seem to be the most important factor which is helpful for decision-makers of royal-Enfield to analysis the current situation of the that country where industry expands.There are six factors which are influencing PESTLE analysis.
Political factors include areas such as taxation policy, law labor of law,transportation problems and stable political environment. Furthermore, governments have great influence proposal that limit number of motorcycles being sold in the country because Indian currency changes everyday with the comparison of UK pounds.The changes of currency means the changes of price of products and demand of product like royal Enfield are also changes which means recession are enter into the market so UK government take some steps to solved the this problem.Royal Enfield sales would affect by this issue.Furthermore UK consumers pay higher pre-tax prices for Motorbikes than anyone else in the Europe.Government is keen to attract foreign firms to invest in UK.

Economical factors include economical stability,rate of interest,currency rate[market Recerch report{2013}] . These are factors which puts impacts on the operation of business and accrucul decisions. This is because the rate of interest and the currency rate changes day by day so there is no economical stability in the country and current recession is having a significant impact on the whole UK economy including the motorcycle industry.

Social factors include the demographic and cultural aspects of the external macro environment. These factors affect customer needs and the size of potential markets.In UK, consumers have a strong beliefs in their local brand instead of other country brand such as Indian brand Royal Enfield.Language barrier Royal Enfield is moving to worldwide business so they deal in the English language to the customer in different countries of the world which is helpful for customers to understand easily.

Technological factors include some technological things such as Recerch and development activity,automation,technology incentives and the rate of technological changes.Nowadays, people too rely on GPS( Global Positioning System) to search a location they want to go due to GPS had developed by new technology. Therefore, Royal Enfield have already included Satellite Navigation System in their newer model Bullet 350 classic. Royal Enfield has always been passionate in innovating technology and challenging boundaries of mobility advancements.

Legal factors include employment law,consumer law,health and safety law.These factors put a bad impacts on the cost of products,the demand of product and the production of product.Due to employment laws in UK, employee working hours and the wages are . UK government has proposed all the company workplace must be as safe as is reasonably practical. They cover issues such as training, reporting accidents and the appropriate of safety equipment to make sure employee are in safety situation.
Environmental factors include ecological and environmental factors such as weather, climate conditions, and climate changes. Moreover,with the increasing of awareness among the potential climate changes is affecting demand of product so company operator take quick decision by creating new markets and diminishing or destroying existing market. REFERENCES

Palmer Clive.(pestleanaysis):http://pestleanalysis.com/pestle-analysis-business-environmental-analysis/.com

MarketRecerchreport.[2013]:report linker,http://www.reportlinker.com/ci02301/Motorcycle.html

Similar Documents

Premium Essay

Pestel Analysis of Royal Enfield

...*  2 BRAND ANALYSIS OF ROYAL ENFIELD       Acknowledgement We would like to thank all the people who were involved with this project and whose support and encouragement helped us complete the project. Indeed working on this project has been a truly enriching experience for us as a team. We are extremely grateful to Professor R.Kamle for entrusting our group with this huge responsibility. We wish to express a profound sense of gratitude to Professor Kamle for his generous suggestions and valuable insights, without which this project would not have been a success. Last but not the least, we would like to thank all our team members who participated and contributed towards the successful completion of this project. Entire Group * 3.   Brand  Analysis  of  Royal  Enfield   3     Table Of Content 1. Executive Summary 2. Introduction 3. Product Line 4. Change In Strategy After Year 2000 5. Communication & Distribution 6. Missing Communication 7. Brand Analysis of Iconic Brand 8. Conclusion & Recommendation Executive Summary Executive Summary * 4.   4 BRAND ANALYSIS OF ROYAL ENFIELD   Executive Summary The Research is aimed at the study of Royal Enfield Brand in Indian Markets – So far how they have performed and suggestions for them to grab more market share and be profitable. Every year, they have sold modest numbers but despite low numbers, they continue to command a position of respect and awe in the Indian motorcycle market. The objective of the study was to......

Words: 9790 - Pages: 40

Free Essay

College

... Saved Papers Home Page » Business and Management Royal Enfeild Pestel Analysis In: Business and Management Royal Enfeild Pestel Analysis A Cult Motorcycle From India Takes On the World The Royal Enfield Motors factory in Chennai, India. The brand sold nearly 175,000 motorcycles in 2013. By SAMANTH SUBRAMANIAN Published: January 3, 2014 NEW DELHI, India — The Royal Enfield Bullet, often described as the oldest continuously produced motorcycle in the world, is a cult product for enthusiasts who love it for its vintage feel as much as for the thrum of its engine. Muscular and pliant, the Bullet — an Indian-made avatar of an old British brand — has found renewed popularity over the last few years, as leisure motorcycling in India has blossomed. Its manufacturer, Royal Enfield Motors, sold almost 175,000 motorcycles —Bullets as well as three other brands — in 2013. The company is now looking to push harder into British and American markets, hoping to follow in the wake of other Indian motor vehicle manufacturers that have competed hard with overseas brands even as their peers in other industries have struggled. Royal Enfield’s newest model, a midsize “cafe racer” called the Continental GT, was introduced at an elaborate event in London in September. “It’s the first bike that we’ve developed keeping the world market in mind,” said Siddhartha Lal, who is credited with turning Royal Enfield around. Mr. Lal, age 40, is the chief executive of Eicher......

Words: 365 - Pages: 2

Premium Essay

Resource Base View

...Resource Based View A question summarizing RBV approach. Definition The resource-based view (RBV) is a model that sees resources as key to superior firm performance. If a resource exhibits VRIO attributes, the resource enables the firm to gain and sustain competitive advantage.[1] What is a resource based view? RBV is an approach to achievingcompetitive advantage that emerged in 1980s and 1990s, after the major works published by Wernerfelt, B. (“The Resource-Based View of the Firm”), Prahalad and Hamel (“The Core Competence of The Corporation”), Barney, J. (“Firm resources and sustained competitive advantage”) and others. The supporters of this view argue that organizations should look inside the company to find the sources of competitive advantage instead of looking at competitive environment for it. The following model explains RBV and emphasizes the key points of it. _ Improve your management style, hire a business speaker According to RBV proponents, it is much more feasible to exploit external opportunities using existing resources in a new way rather than trying to acquire new skills for each different opportunity. In RBV model, resources are given the major role in helping companies to achieve higher organizational performance. There are two types of resources: tangible and intangible. Tangible assets are physical things. Land, buildings, machinery, equipment and capital – all these assets are tangible. Physical resources can easily be bought in the market......

Words: 13089 - Pages: 53