Published by MBA Skool Team, Last Updated: February 27, 2021
PESTLE Analysis of Asus analyses the brand on its business tactics. Asus 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 Asus, as it helps to understand market dynamics & improve its business continuously. PESTLE analysis is also referred to as PESTEL analysis.
The political factors in the Asus PESTLE Analysis can be explained as follows:
Asus is one the leading technology & consumer electronics brand. Political stability or instability can have a great impact on the industry’s profitability. The supply chain of this industry could be affected by political instability as this industry acquires its products from various parts of the world where resources are cheap. The political stability of both the exporting country and the importing country are of major concern. Changing political tides in China and the European countries can leave the PC makers badly frustrated. Countries with poor relations can also have an impact on Asus’s sales. It also depends on the government as to whether they promote national products or ensure heathy trade relations with other nations to ensure best prices. The control of government on the industry on various other factors like internet usage would also affect the company’s efficient operations as such factors can cause unpredictable and unnecessary changes in the company’s growth aspects and profitability.
Below are the economic factors in the PESTLE Analysis of Asus:
The economic environment in which the company competes may bring out a lot of opportunities and hence an in-depth analysis must be done.
The fluctuation in foreign currency rates and cost of raw materials affects how Asus does its business. Charges paid to procure the raw materials or semi-finished goods must be very reasonable as it is subject to change and may fluctuate. This may increase or decrease costs of the product which may not be liked by the customers. Economic factors like taxes and value of money also influences the demand. Attractive prices along with great products also influence the sales and profitability. The share prices of the company are also affected by such factors and hence a control on economic factors will ensure increase in shareholder’s worth. This would not only be impacted by the nation’s economic situation but also worldwide as people around the world purchase products from the company.
Following are the social factors impacting Asus PESTLE Analysis:
The personal computer’s industry has come a long way from being a luxury to being used by a much larger number of people almost every day. Social and cultural trends have played a major role in bringing about this change. The increased use of social media to stay connected with people from around the world at any given point in time has increased the demand for products with better mobility. Adding on to this has been entertainment, gaming and various applications that have been increasing the leisure trend. Depending on these the company gets a chance to explore the markets more and introduce products to cater to a set of target customers by meeting their expectations in and out. Asus has already been adding on to its product range various gaming PC’s, notebooks, etc. in order to fit in the right place. An increase in standard of living in the nation also affects the sales and profitability.
The technological factors in the PESTLE Analysis of Asus are mentioned below:
To keep up in this industry Asus needs to invest into the latest technologies at an extremely fast pace. The technologies could include material, products, or processes. This is because latest technologies tend to make products more feasible and efficient not only by means of manufacturing them but also making it compact for the user. Not doing so could reduce their brand value thereby putting recognition to stake due to the competition in this industry. It has diversified into a range of products like mobile phones, tablets and other devices to remain in the competition and be a one stop shop for such devices. This has proved to be very favorable for the company. Its release of different types of ultrathin laptops and gaming laptops has also helped in getting back the dying laptop market on track.
Such releases are very important in this industry as people are always attracted to such features.
Following are the legal factors in the Asus PESTLE Analysis:
Asus may face many issues involving technology laws and hence Legal compliance is an important concern for the company. The company sells in various nations and must be aware of the local laws in all the countries and must comply to the same. It is important to stay cautious about it as the local laws differ from one country to then other. Safety laws, labor laws and some other common laws related to taxes may affect the company’s operational efficiency, sales and profitability. Asus must also be aware that as these laws differ from one country to the other and hence the implications may differ too. Legal charges may harm the company demanding unnecessary time and cost. Apart from this business laws that the company has to follow to operate in the market are to be taken care of for its smooth functioning.
In the Asus PESTLE Analysis, the environmental elements affecting its business are as below:
Being a part of such an industry Asus needs to take good care and plan where and how to dispose technological or electronic waste. Electronic waste or e-waste describes discarded electrical or electronic devices as it no longer serves its purpose. Not disposing them correctly could result in major environmental effects and human health hazards that could be profoundly serious.
Hence the goal should be to be a careful attendant of the environment and take initiatives to ensure operations and products are environmentally friendly. Asus should also focus and try to reduce its energy /power consumption as much as possible and develop means to getting them from methods like solar energy that could make them self-sufficient. Corporate social responsibilities are also a particularly important arena that all business should contribute to so as to uplift the society along with the business.
To conclude, the above Asus 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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