Dr Reddys PESTLE Analysis

Published by MBA Skool Team, Last Updated: February 21, 2021

PESTLE Analysis of Dr Reddys analyses the brand on its business tactics. Dr Reddys 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 Dr Reddys, as it helps to understand market dynamics & improve its business continuously. PESTLE analysis is also referred to as PESTEL analysis.

Let us start the Dr Reddys PESTLE Analysis:

Political Factors:

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

Dr Reddys laboratories is a multinational company. Due to the nature of the industry the company need to work in an environment where there is political stability. The rules and regulations regarding in innovations and tests for those newly invented medicines are very strict and should undergo many processes for approvals. These rules change from nation to nation. The company should also keep the policies made by government for innovations and the nation should be receptive for the invention. The trade policies between nations also impact on the global supply chains of the company.


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Economic Factors:

Below are the economic factors in the PESTLE Analysis of Dr Reddys:

The company like Dr Reddys which needs a huge amount of funds.

Due to pandemic, and other fiscal policies, the economy of the country has ups and downs. The credit also decreased and banks also facing deficit fund. The economic activity of the nations has huge impact on the company. These days people are spending more conscious on health and spending more on health. The economic activity also raised and most of the nations also increased their expenditure on health which is a good trend for the industry.


Social Factors:

Following are the social factors impacting Dr Reddys PESTLE Analysis:

Society & behaviour of people affects how the business of Dr Reddys grows. At present due to increase of importance of education and moving trend towards the entrepreneurship has a greater impact on this industry. People who are keener to innovations are increasing from the last decades and the company deals with those minds. The policies made by the government for the development of the skills which enhance for the mindset to invent new is a key factor for the industry. The change in lifestyle and need of new medications for the change make the company to innovate new medicines.


Technological Factors:

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

Dr Reddys is a research-based company which innovates new formulas and invent new generics. For this, advanced mechanics should be used. They should constantly improve their process of manufacturing and the new technology will aid for their research-based programs. The improvement in global supply chains, there is a need for improve the efficiency for the futuristic process.

The new technologies which aid for the global supply chains should be adopted and the new advanced robotics also aid for the manufacturing process.


Legal Factors:

Following are the legal factors in the Dr Reddys PESTLE Analysis:

Dr Reddys invent new generics and medicines. So, it is important to ensure that these are passed every quality test of medicine administration. The legal practices followed by the company should be according to the laws of the nation where it operates. It should follow the international laws where it has to operate internationally and it also has gotten permissions for the enhancement of their global supply chain. The company should also follow the laws to establish its manufacturing units in different countries.


Environmental Factors:

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

For the manufacturing medicines and for the research process, there will be lot of usage of the no renewable energy. As there is a lot of concern on the climate change and to reduce the carbon foot print the company has to follow the sustainable practices.

Dr Reddys announced to reduce its carbon foot print by manufacturing using renewable energy resources. It also should decrease its waste. It also should make its global stakeholders to practise sustainable practices which aids for the company good will.

To conclude, the above Dr Reddys 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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