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PESTLE Analysis Automobile Industry: Mercedes

Automobile Industry PESTLE

Introduction To Automobile Industry UK: Mercedes

This report is written to shed light on one of the world’s biggest and renowned brand name in automotive industry- MERCEDES BENZ and its strategic analysis within UK. It includes all the factors which are featured to study macro- environment and how the political, economic social and technological along with legal and environmental factors impacts the development of the business within the country. But the main concern highlighted in this study are the areas which are being critical to sustain the business and its growth strategy at country level.

Strategic Analysis Automobile Industry UK: Mercedes

Mercedes is an iconic organisation, in recent times the competition has increased multi-fold and targeting cost effective measures is a critical aspect to offer value to the customers. The PEST analysis highlights critical information regarding the company and analyses the external factors that are responsible for motivating the organisation to move towards Industry 4.0 and create sustainable means to achieve efficiency within its business processes.

PESTLE Analysis Automobile Industry UK: Mercedes

The Mercedes strives hard to maintain its strategy in context of the rules and regulatory laws. For this they had a system to deeply study and implement effective strategies to maintain environment within the company. These environment are inter-related which are commonly termed as the industry environment or socio environment where currently the company is providing services as well as the geographical markets. Strategic analysis of the political, social, economic and technological factors are commonly aimed to target factors associated with macro environment.

Automobile Industry 4.0 Mercedes

As we know that Mercedes is amongst the top class brands providing high quality first class products and offers quality services, which makes its name to be in the list of luxury segments leader in the market. This car group plays an important role in the success of group of cars worldwide but especially in UK, as it is highly concerned about aspects of modernism, focusing the safety of its clients, innovative automobiles meeting the demands of the customers. Above all it is well reputed in the areas of use of current innovative technology with full safety.
As the modern era calls for a smart future so does the automobile industry is on its way of journey towards fourth industrial revolution

Automobile Industry 4.0 Digital Transformation

Industry 4.0. Digital transformation has overpowered operations of the company in its products, productions as well. Since this revolution has huge level of potential in it so it is accelerating at extremely high pace. Mercedes in UK is taking its production to a new strategy in order to expand their line of production further intensifying efficiency of the inbound logistics.

This company is on their voyage of jumping in complete throttle of becoming the pioneers of the 4th industrial revolution, not just by the ways of designing vehicles but through their products their lines of production and services and transport industry influences side by side with the transportation factories are struggling to meet the standards of the needs of customers by embracing opportunities in their way.

As the 4th industrial revolution is referred as the digital transformation to smart factory that are highly significant for using cyber physical systems and internet of thing and systems so it is liable to a high variety of risks which are tremendous in their nature. This company is following objectives of smart factory with collaboration of the UK regulatory authority i.e to high flexibility, increased speed and level of efficiency for smart logistics in an attractive environment to work in.

Industry 4.0 and PESTLE Analysis

In regard to this, every business analyses its external environment as it is an important segment of process of planning and marketing strategy. There is a variety of many hidden factors that are responsible to effect any business, some of them are vivid however some of them appear on the picture after sometime. At the same time, some businesses suffer from the impact of factors which are not even under the control of the type of organisation they prevail in.

Political Forces: PESTLE Analysis Automobile Industry

One of the UK’s major political factors which is responsible to effect the automobile industry is the system of taxation. The duty charged on the imported cars is highly dependent or in other words its basis lies on the category of the engine of the cars. Whereas the taxes are based on the freight and insurance and prices of the type of cars causing threats to these industry as they will be highly expensive as compared to local UK car manufacturing companies.

Economic Forces: PESTLE Analysis Automobile Industry

The sale of these cars are totally dependent upon UK’s economic factors, since the fluctuation in the currency rates directly effects the production services thereby increasing prices of the cars. It becomes a threat to the car industry as the exchange rate of UK’s currency with other countries makes the prices extremely higher than the locally manufactured cars. As a result, this economic slowdown will assist in resistance of offering of job opportunities for nationals, reducing purchase power of consumers as the income would be less or even the situation will probably result in unemployment, effecting the strength of British government. Also, spending of people will be impacted by rates of inflations as they will have less money to spend resulting from increased prices. As a result it will cause severe threat to economy of country to borrow more and pay high rates of interests.

Social Forces: PESTLE Analysis Automobile Industry

In terms of context of UK’s concept of social, a variety of its categories of can be defined. Income is the main aspect which is suitable and relevant to define the major social categories as the people who are earning good are identified to use luxurious cars and go for high priced automobile as it is a symbol of wealth and matter of their prestige. So, Mercedes does have this opportunity that it can easily sell its cars to the category of high income. Also, since it is a common trend among British natives that whosoever in the family has driving license should own a luxury car. Hence, the car seller has the opportunity in this high demand country as people are studied that they prefer use of modern technology and advanced techniques. In other words price does not matter but advancement and safety does.

Technological Forces: PESTLE Analysis Automobile Industry

As Mercedes have efficiently identified the demands of the people, so by being industrially revolutionised it has successfully recognised people and their relation with cars to meet future demands. As we know that the advancements of the foreign manufacturing companies are highly effected and the companies do tend to incorporate the influences of their mother country so is the case of the technological advancement of this company.

As it is a common view about UK, that it is regarded as one of the country practicing environmental concerns in the world so it does encourages for research and development to incorporate eco-technology. This means the use of hybrid cars by advancing in technology and even driverless cars in order to reduce number of accidents and harms on environment. This idea of driverless cars have engaged the company and its workers well in technological use at a maximum level as a reason to attract the customers side by side outperform its competitors in global market who are not ready to slot in this marvellous technology.

Furthermore, in order to involve itself into UK market, Mercedes is noted to bond with the laws and regulations of the state, government and other law governing bodies. It has successfully assessed business laws and what are their interests. The company is identified to be consistent in meeting the search for the demand of safety and environmental protection by the people. To add up to their operative system it is noted that Mercedes keeping in view the unity of the families and their concerns for safety has used the symbols three pointed stars which are iconic to depict the joining of hands or collaboration with the rules and regulations, customers and the manufactures which has become its company symbol.

Mercedes is identified to be positive in meeting environmental standards of UK and has joined hands with agencies for climate enforcement laws as it is a critical issue to safeguard norms of the country. Similarly, it keeps in its concern part of investments since it is highly important for their strategies to be competitive in the market. As it is noted to be the only bran din automobile industry which is ISO certified hence it does keeps in view UK climate change concerns. Business model of the company as well as the supply chain is highly accurate for the type of the country’s environment.

Conclusion: PESTLE Analysis Automobile Industry

Hence, we deduce that the planning policy like interior and exterior of Mercedes is highly impressive. It merges the luxury safety and comfort of customers with strategic business planning and results in highly sophisticated products which are according to UK regulations. Since it has reached up to the level that the brand name is high in the industry so it does keeps its image by maintaining standards by following rules.
It shows extreme value to laws of UK and abides them with loyalty and makes it tough and even impossible for competitors to compete with it in any way mainly profitability. At the same time its digital transformation is also noted that it does not end the gateway of opportunities for the factory but it is highly innovative and keeps up the pace with rules and conditions. It is no wrong to say that, it seeks the satisfaction of its customers and country rules.

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