pestel analysis of computer industry

The biggest technological change that has impacted the PC market is the increase in the increased popularity of the mobile technology. If DELL does not invest in innovation and R&D and does not keep up with the latest technological developments in the field it would be at a severe disadvantage. Apart from it, there are laws that are industry specific and some of the common laws like tax and labor laws that create pressures on the PC brands. Many political factors in the country in which DELL is considering doing business, or in which it is already doing business, can affect the company’s operations. When DELL sets up in a new country, it will have to look at this country’s relationship with China and its other manufacturing hubs. Legal compliance is also an important concern for the PC industry. The main computer market for DELL would be the United States, Europe, and Asia-Pacific. It has brought all of the departments and companies closer together with the use of internet and people can do most of their works in short time. The IT tools are used for different illegal activities and terrorists use different social media sites to convey their message and there was not proper arrangement to tackle their phone calls and messages. ProQuest. Learn what works (and what doesn't) from the reader's perspective. However, there are other factors too that are hindering the growth of this sector. Spanish oil giant Repsol had to face a similar instance. For example an Industry may be highly profitable with a strong growth trajectory but it won't be any good for Super Micro Computer, Inc. if it is situated in unstable political environment. Apple’s Mac PCs and laptops lost a 9.8% market share to their competitors. It also ensures that companies can do business without any fear of losing profits and sales. However, in the Asian societies where PC was initially seen as a tool for professionals has become increasingly common. DELL would also have to look at government stability in the country in question. The PC brands are required to adhere to the local laws of the markets they operate in. Technology and regulatory information can be found in the Operating Conditions section. Open the Business section and select Company Dossier to search for information on a specific company. It looks like you're using Internet Explorer 11 or older. Globally the political environment is linked with economic stability. Copyright, patents / Intellectual property law. The political situation in any country can affect the business of IT industry. The government can make its use perfect and useful for the people and prevent to use for unsuitable purposes or for the crimes. The government can make its use perfect and useful for the people and prevent to use f… Designed by Elegant Themes | Powered by WordPress, Click to share on Twitter (Opens in new window), Click to share on Facebook (Opens in new window), Click to share on Reddit (Opens in new window), Click to share on Pinterest (Opens in new window), Click to share on LinkedIn (Opens in new window), Click to share on Tumblr (Opens in new window). At the landing page, select Publication and enter "United States" and date > 07/01/2016, for example, in the search box. PC industry Five Forces. Type of economic system in countries of operation – what type of economic system there is and how stable it is. Prices are an influential factor when it comes to sales and profitability of these PC brands. It examines the Political, Economic, Social, Technological, Environmental, and Legal factors in the external environment. Changes in the macro-environment factors can have a direct impact on not only the Super Micro Computer, Inc. but also can impact other players in the Networking & Communication Devices. The main political factors are as follows: 1. Designed by Elegant Themes | Powered by WordPress. While most analysts have predicted that the downslide is going to continue, some of the PC makers like HP are trying to bring the PC and laptops back in a new avatar. Kibin does not guarantee the accuracy, timeliness, or completeness of the essays in the library; essay content should not be construed as advice. Infrastructure quality in Networking & Communication Devices industry. It can also help to grow the IT industry in the private sector. The climate of the country in which DELL is operating is a main concern. After the economic recession, many governments have reduced interest rates in an effort to attract investment. These markets are also characterized by a younger population that is more tech savvy than older generations. In the Asian nations if PC sales have sustained then it was for the high professional consumption in these nations. The example essays in Kibin's library were written by real students for real classes. It is also necessary for the government to adopt policies for the use of software and social media and keep it on the right track. Product labeling and other requirements in Networking & Communication Devices. They can impact individual firm’s competitive advantage or overall profitability levels of the Technology industry. US Newssteam. PESTEL analysis provides great detail about operating challenges Dell Technologies Inc. will face in prevalent macro environment other than competitive forces. Several factors in the economic environment can affect DELL, such as: 1. Several things have changed in just last ten years. 'Industry exports performed strongly at the beginning of the five-year period through 2019-20. The importance of China as a market for PCs has grown in these years. Economic information can be found in the Products & Market - Demand Determinants section. Let us start with what PESTEL or PESTLE stands for. During the recent years and with the rise of social media, people’s taste has shifted towards products that provide better mobility. These political changes have both short and long term impact on the market conditions. They're not intended to be submitted as your own work, so we don't waste time removing every error. Available from 1984-present in ProQuest Newsstand. IT tools and equipments are used in different businesses and it has made work easy and you can do in short time. Abhijeet has been blogging on educational topics and business research since 2016. Laws regarding ethical business practices such as the Foreign Corrupt Practices Act (FCPA) in the US and the UK Bribery Act (UKBA) would need to be followed. Compared to the other markets, the performance of the Indian and Chinese markets has remained better. CQ Researcher Online. This article analyses the various forces affecting the PC industry through a PESTEL analysis. In a developing country, there may be laws regarding copyrights and patents, but the implementation of such laws is lax and often government action is not taken against cheap local copies carrying the brand name. Information Technology has integrated India’s economy through removal of many barriers in the sector. to view the complete essay. (2014) Jeevan charm. PESTEL or PESTLE analysis, also known as PEST analysis, is a tool for business analysis of political, economic, social, and technological factors. In case DELL tries to expand, it may run afoul of anti-trust laws. This website works best with modern browsers such as the latest versions of Chrome, Firefox, Safari, and Edge. Full text of 300+ U.S. and international news sources. PC and laptops are technological products that are affected deeply by technological changes. Based on its potential for productivity too PC can be expected to play a more important role in the coming days. - Alfredo Alvarez, student @ Miami University. For example an Industry may be highly profitable with a strong growth trajectory but it won't be any good for Dell Technologies Inc. if it is situated in unstable political environment. It started an above average profitability operations in Argentina and made strong returns in 5-7 years. A PESTEL analysis is used to identify threats and weaknesses  which are used in a SWOT analysis. Now business activities are carried out quickly and people can do it in short time. Several of these PC makers have a large number of their suppliers in China. India is one of the countries that rule the IT world today. DELL’s competitors are heavily investing in innovation and research and development and are continuously rolling out new products. Did you find something inaccurate, misleading, abusive, or otherwise problematic in this essay example? The biggest issues are related to the disposal of these products that are non-degradable. A PESTEL analysis is a framework or tool used by marketers to analyze and monitor the macro-environmental (external marketing environment) factors that have an impact on an organization, company, or industry.

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