Business Analysis using PESTEL Essay Example | Topics and Well Written Essays - 3500 words

Business Analysis using PESTEL - Essay Example The main part of the report has used PESTLE framework to identify the factors that are important to be considered by the electric car manufacturers. The listed factors are then classified as highly relevant and less relevant. An impact analysis is then performed on the highly relevant factors to arrive at the most important trend to be considered. The trends as identified by the impact analysis are Government spending, Government deficit, Economic Growth, Research spending, Innovations, Safety regulations and Environmental awareness. Based on the analysis of the above factors, it is identified that the main opportunity for the electric car companies in the next 5 years is the increased environmental awareness among the people. Similarly, the main threat for electric car markets is the uncertainty about government policies. Sl. No. Topic Page No. 1 Introduction 4 - 5 2 Main body 2.1 PESTLE Analysis 2.2 Analysis of four trends 6 – 10 10 – 15 3 Conclusion 15 – 16 1. Introduction Developing a powerful battery for electric cars is a challenging task for all electric car manufacturers due to the various challenges associated with it. Those main challenges will be discussed here in this report. The topic is â€Å"A new type of battery that can extend the range of electric cars between charges from about 100 miles to about 500 miles.† This study will deal specifically about the electric car market in UK. The various aspects that are relating to the UK car market are dealt in detail in this report. The objective of the study is to identify and analyse the four key factors that are important for the electric car market in UK. A very comprehensive PESTLE analysis is done in order to identify the key factors affecting the UK electric car segment. Before getting into the core area, it is important to have an idea about the UK electric car market. British automobile industry is one of the most established and fastest growing automobile industries in the world. UK shows good growth figures for all car segments. The trend until some years back has been the small car segment. But now, the trend is getting shifted to the electric cars irrespective of whether it is big or small. The main motivating factors for such a shift in trend is the continued awareness regarding the ill effects caused by vehicle emissions and the low cost of operations. Due to this high potential that exists in the region, companies from across the world are targeting to introduce electric cars for the UK market. This is evident from the fact that the even the super luxury car maker Rolls Royce will unveil the electric version of their Phantom in the 2011 Geneva Motor Show. As of 2008 electric cars represented around 0.004 percent of cars on the UK roads. The committee on climate change then expected this figure to reach around 40 percent by 2020. (Webster, 2008) (Ref. 1). The following chart gives the electric car growth estimate by region. (Reed, 2010) (R ef 22) To make things easier for the car manufacturers as well as the potential buyers, the UK Government is very keen on supporting the segment through their subsidy programme and other policies. The government has planned to provide subsidy of up to ?5000 to those who acquire an electric car in future. (House of Commons, Page 40) (Ref. 2) But when it comes to the sales of electric cars, government support is not the only factor that works out. The practicality of the car is the most important success