The Pest Analysis Of Bentley

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1. Company Background Bentley is a British luxury automaker founded by W.O. Bentley in 1919. It was acquired by Rolls-Royce Limited in 1931 and later acquired by Volkswagen in 1998. Its mission is “To build a fast car, a good car, the best in its class” (About Bentley, n.d.) and headquarter is located in Crewe, England. Bentley automobiles can be sold via franchised dealers world-wide. In 2001, it first entered China market (“Bentley Mulsanne”, 2009) and China even became the largest market of Bentley in 2012. Shenzhen, Guangzhou, Beijing and Shanfhai are where Bentley’s showrooms have been established.
2. PSET Analysis
Our PEST analysis reviews China’s macro-economic environment of the automobile industry. By observing the macro environment,
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Stable political environment
The People's Republic of China (PRC) is a single-party state governed by the Communist Party with its seat of government in Beijing. It has a stable political environment and is leaded by Xi Jinping. During the past decade, the Chinese government has opened their markets to world investors and created laws and regulations more in line with the World Trade Organization (WTO) guidelines. This change in philosophy has encouraged foreign investment in China.

2. High tax on import automobile
In order to protect its local automobile industry, China has imposed a high tariff on importing vehicles up to 25%. Also, there is a sales tax of 1-40% of the vehicles in dependence of the type of vehicle and a value-added tax of 17% to the cars (appendix 1). A high proportion of cost is being paid as tariff and taxes. However, the taxes on car parts are lower. Some companies choose to import the parts to China and assembly it again to avoid high taxes. 3. Joining of the WTO
After China joined the WTO, countries including US and German had pressured on China’s high tariff. China took a soft attitude on this issue whereas experts estimated that the tariff would decrease.

4. Policy on eco-friendly
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The reason advertisements become the most influential reference group is they are the major elements to transmit consumer culture (i.e. TVC, billboard, etc). At the same time, the market segmentation of those luxury products’ advertisement is for middle or upper class people, whom are easily affected because they believe their social status is very dominant and luxury brands represent taste, trend and high-end fashion, which can demonstrate their social status. In addition, their financial ability is affordable to buy luxury products to show off (Dou,

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