Published by MBA Skool Team, Last Updated: December 13, 2020
PESTLE Analysis of Vivo analyses the brand on its business tactics. Vivo PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand.
PESTLE analysis is a framework which is imperative for companies such as Vivo, as it helps to understand market dynamics & improve its business continuously. PESTLE analysis is also referred to as PESTEL analysis.
Let us start the Vivo PESTLE Analysis:
The political factors in the Vivo PESTLE Analysis can be explained as follows:
Vivo is international leader in android based smartphones across world specially in Asian countries. When the business has grown in multiple parts of the world, its manufacturing units spread across the world and mainly focusing in Asian region. The political situation of those regions becomes very critical to be considered. Frequent change in political leaders of a nation causes the changes in perspective of government in the way it looks at business. The subsidies may be reduced, laws may become more labor centered etc. US Vs China war is hitting Vivo since the export duties to US have sky rocketed. When goods have to be moved from one place to another the tax is a major component in the financial transaction. These laws that govern tax payment also gets revised with political scenario. Whole supply chain gets disrupted and the business finds it tough to be in the position of global leader. If any country that Vivo wants to expand is prone to terrorist attacks or is prone to military invasion then that part of expansion of business should be re-worked upon.
Below are the economic factors in the PESTLE Analysis of Vivo:
Vivo phone companies’ business is directly influenced by economic factors.
The factors depending specific to country like their own taxation policy. Each country has its own taxation policy in place and it is rigorously followed. Global scenarios like the global recession of 2008 was a period when public lost its power to buy leisure and fancy stuff due to cut in number of jobs and weak economy. Their spending power came down drastically. Exchange rates of national current of China with respect to dollar is critical. More the value of currency against unit dollar weaker is the indication of currency in international market. Interest rates in that county also matter because there are many smartphones which user buys by taking loan and if the bank offering loan at higher rates then it would be difficult for user to willing fully opt for high loan rates.
Following are the social factors impacting Vivo PESTLE Analysis:
People in 21st century have increasing amount of disposable income with them, which is good for Vivo. Except in times of recession people are in weak economic condition but except that the income strength of public had increased. The desire to buy more a more advanced home appliance is made possible with ease to take a loan for the same. They see luxurious brands and their products as a sign of social status and they are in no compromising position to let their status come down. The educational level of people in 21st century is increased tremendously. The ease with which they can interact with smart devices including smartphones like Vivo is impressive. The socio-cultural factors also effect the marketing strategy of the firm. The advertisements that are carried out on Television are seen encouraging by public since they see their favorite celebrity in it. Demographic division of people based on age, sex should also influence a market place. Younger ones are more attracted to technology. Economic class of people should be studied well before launching a premium product in that market.
The technological factors in the PESTLE Analysis of Vivo are mentioned below:
Phones section has seen most incredible change in technology. Technology is ever changing and thus the brand Vivo should also adopt the same in its products to be in active in the competitive market. No adhering to the advance technological changes and failure to understand new needs off customer in market may lead to shut down of busies. One such example is Nokia. They couldn’t cope up with the changing smartphone and operating system changes and it went out of competition with new players serving the new needs of public market place. Vivo has been advancing technically. It does bring constant new features to the market. One of the examples being the pop out selfie camera.
Finger print lock was also a revolutionary update in technology.
Following are the legal factors in the Vivo PESTLE Analysis:
Intellectual property is one of the main laws that should be taken care of. Technological development is carried out via research and Development by all the firms in the sector of home appliance. They have a separate division of R&D for this sole purpose. But when Vivo discovers a new discovery and a breakthrough one like the pop out selfie camera phone it should protect the technology in a way it can’t be illegally used by its competitors and take away their competitive advantage. Laws pertaining to environment protection including protection of flora and fauna should be followed strictly since they are at global level. Taxation laws change from state to state and they are to be incorporated to avoid heavy penalties.
In the Vivo PESTLE Analysis, the environmental elements affecting its business are as below:
The main reason and evident criticism that Vivo and all smartphone manufacturing companies for that matter face is the amount of carbon footprint they leave behind with each unit of product they manufacture. The electronic waste that is generated was unregulated until some years.
But when the world as a whole noticed the major and severe issue it posed to the human waste since it is non-biodegradable. re-using its components is one way of reducing the waste that is generated per part. Waste that is generated from the manufacturing plant should be neutralized and then only be poured into water bodies or in air as well.
To conclude, the above Vivo 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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