Political Factors that affect Automobile industry
Every automobile industry is subject to effects caused by the political factors. This PESTLE analysis models impacts the Governments and other political factor affecting the industries. In Hyundai’s case, the following are the significant political external factors affecting them
1. Political stability in most major markets (opportunity)
2. Free trade agreements (opportunity)
3. Governmental support for eco-friendly products (opportunity)
The political stability of markets is an opportunity for Hyundai to grow with minimum political tension.
Free trade agreements involving Korea and other countries where Hyundai operates present opportunities for improved …show more content…
Rapid growth of developing countries (opportunity)
Hyundai has the opportunity to improve its exports from Korea based on the weakness of the Korean Won
Hyundai has the opportunity to grow its business in the U.S., which is the biggest market after Korea.
The rapid growth of developing economies present the opportunity for the firm to improve revenues based on these markets. According to the analysis of economic factor they provide opportunity to the business
Socio-cultural factors affecting Automobile industry
This dimension of PESTLE model shows the impact of social and cultural trends affecting business. In Hyundai’s case, the main socio-cultural factors affecting them are:
1. Increasing interest in hybrid cars (opportunity)
2. Increasing interest in electric cars (opportunity)
3. Widening wealth gap (threat)
Hyundai has the opportunity to provide more of electric and hybrid cars that can satisfy the customers.
The company must also consider the widening wealth gap, which can be a threat because of declining middle class. The main source of revenue for the company is from middle class
According to the analysis of Socio-cultural factor, the widening wealth gap is a major concern as it is a major threat to the …show more content…
Hyundai has the opportunity to improve its e-commerce capabilities for the sales of some of its products, such as spare parts or accessories.
Hyundai has the opportunity to bring in new mobile apps to increase customer interaction and make it easy for the customers service.
The company must address the threat of cybercrime, including corporate cyber-espionage.
According to the analysis of technological factors there are major technological opportunities, even if there is major technological opportunity, the company should improve its technology to address the cybercrime issues.
This dimension of the PESTLE analysis model is more concerned with the natural resource affecting the business. In Hyundai’s case, the major environmental factors affecting the industry are:
1. Climate change (opportunity)
2. Declining global oil reserves (opportunity)
3. Increasing emphasis on business sustainability (opportunity)
Hyundai has an opportunity of producing cars which are environmental friendly such as hybrid cars and fuel efficiency cars as the declining of oil reserves are high.
The company also has the opportunity to increase its performance through some improvements in the business process