Rolex PESTLE Analysis

Published in Companies category by MBA Skool Team

Rolex PESTLE (or PESTEL) Analysis assesses the brand on its business tactics across various parameters. PESTLE Analysis of Rolex examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. Let us start the Rolex PESTLE Analysis:

Political Factors:

The political factors in the Rolex PESTLE Analysis can be explained as follows:

Rolex is high quality watch manufacturing firm with presence all over the world. The product is sold all over the world but is mainly manufactured in Switzerland hence the policies there matter the most. The government stability is utmost important for smooth functioning of the business. Integrity of the public and their leaders is needed.

Corruption is the result of bad leadership and management with moral lacking. if the country has any chances of military invasion because if yes then disinvestment starts.


Economic Factors:

Below are the economic factors in the PESTLE Analysis of Rolex:

Rolex should consider the current economic system followed in the country. If its monopoly, or an oligopoly or something which can be called as perfect market competition.

The country in which it is manufacturing its products should have a growing GDP rate. The growing GDP rate means that Rolex would also grow at a better rate. The interest rates determine how much the firm should invest in that country. Country with less interest rates will have more investment coming their way. The condition of financial market is also a factor to determine how will Rolex raise its capital and at what price. Since it has operations across globe, it will have to keep an eye on the exchange rates of currency. Higher the rate of unemployment means that the demand for job is higher thus the labor can be engaged at cheaper rates than compared to other places.

Social Factors:

Following are the social factors impacting Rolex PESTLE Analysis:

The social setup is made of people who are the ultimate customers for Rolex. The attitude of customer, their behavior, their financial status etc. has to be studied. People have increasing rate of income these days and hence the disposable amount with them is increasing. They look up to the advertisements on TV, social media and relate themselves to the brand. Social media is having a great influence on buying behavior of the customer. People are eager to adopt to new technology and products while others are environment friendly. Those environment friendly people see the effects the brands have on the environment by the product it is trying to sell to them.

Technological Factors:

The technological factors in the PESTLE Analysis of Rolex are mentioned below:

Technology is ever evolving. The brand that can keep up with the pace of evolution manages to retain old customers and attract new ones. Earlier was analog phase of watches but now it is digital. These days watch does more than just tell you the time. It shows you the date, day direction etc. precisely.

Rolex has believed in innovations in technology and it has always invested in it.

Following are the legal factors in the Rolex PESTLE Analysis:

Rolex being a premium brand of watch needs to adhere to legal aspects in every country it operates in. The laws related to taxes, labor, environment etc. need to be adopted to strictly. With competitors like Omega, Patek Philippe, Tag Heuer, Hublot they need to be on their toes in case their technology or any intellectual property is leaked or stolen. Separate legal team for any such incidents needs to be in place and proactive in their job. With big brands comes bigger risks of wrongful allegations to draw money from them. There are internal laws and rules in place along with the countries that they operate in to tackle any legal issue.

Environmental Factors:

In the Rolex PESTLE Analysis, the environmental elements affecting its business are as below:

The environment factors concerning Rolex are not major ones. It is environmentally responsible business firm manufacturing 2000 watches per day. In this modern and environmentally endangered era of technology the best a company can do is to reduce its carbon footprint.

Switching to paperless business functioning can be one of the options. Planting trees and taking care of them to e them grow Y to Y like parallel to firm’s financial reports can also be a goal it can opt for. Saving the engendered species of animals, flora and fauna is a major issue and corporates are doing their bit via their products promotions to take the message to the masses.

To conclude, the above Rolex PESTLE Analysis highlights the various elements which impact its business performance. This understanding helps to evaluate the criticality of external business factors for any brand.

This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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