Published by MBA Skool Team, Last Updated: March 05, 2021
PESTLE Analysis of Motorola analyses the brand on its business tactics. Motorola 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 Motorola, 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 Motorola PESTLE Analysis can be explained as follows:
Motorola is one of the most prominent consumer electronics brands in the world. The growth of this industry could be affected by the cost of new license is required which are a result of government regulations. These regulations differ from one country to another and could also change when there is a change in government in the same country. A stable political environment which is friendly for business helps in predicting growth trends and keeps the business away from any political chaos. Changing policies may also have an effect on the development of certain industries. There could always be preferences for particular brands by the ruling party which could also impact the Motorola company. Trade restrictions could also be another factor that could impact the cost structure of the business as it would limit the options of importing the best quality good at cheapest prices. Taxation could also impact the prices at which the company could sell the goods thereby affecting customers willingness to buy. Hence political factors play a very important role in determining search variables.
Below are the economic factors in the PESTLE Analysis of Motorola:
Demand of Motorola products depends largely on the economies in which they are supplying.
The product supplied by the company are not meant for daily purchases but are more like a one-time investment hence there are times where demand rises due to supporting economic factors like better exchange rates, lesser interest rates on loans by the government, inflation prospects etc. Factors like unemployment in a country also affects the market prices off its products as cheaper labor would be available in a country where unemployment rates are high and vice versa thereby impacting the costs. There could be factors that could have an impact in a long term as well as some factors could affect for a very short term. Government spending towards the industry could also affect the same. Fiscal and monetary policies also play a major role as economic factors apart from the real GDP and rate of economic growth of the country. This is because people tend to buy more such growth goods if the company is on a growth trajectory.
Following are the social factors impacting Motorola PESTLE Analysis:
The willingness of people in the society to spend on convenience impact purchase of the products that Motorola sells. Though mobile phones are introduced as a part of our life now, trends in the market affect what brand people prefer. Hence there should be continuous evaluation on how people in the society are reacting to their products and take feedback to define scope for improvement. The education level in the society also impacts the purchaser such products. The brand must Invest in feedbacks and social media marketing to reach maximum people and study their need which will help them maximum efforts to create newer innovative products which go in hand with the demographic trends. Such local customers evaluation and meeting product requirements will help the company to establish a goodwill in the market thereby giving it a competitive advantage for a better future prospect. This is because mobile phones have become more of a fashion statement and people have various options to choose from making it more difficult for every company in the industry.
The technological factors in the PESTLE Analysis of Motorola are mentioned below:
Motorola operates in an environment which is full of technological macroeconomic factors that would affect it. This lightest of technological innovations could lead to major changes in the industry and any delay in adapting to such technologies could lead to great losses. Living in the face pace technological environment is the primary key to sustainability for Motorola. The company requires very good investment in research and development in order to be informed about any technological advancements entering into the market and adapting to the ones that could be of help. This could also have a great impact on the cost structures and value chains of the company and a first mover advantage could always bring opportunities to maximize the profits and develop better strategies for future.
The market for technology has a great future ahead and tapping on to the best opportunities could help the brand not only sustain but increase market shares in the counties of operation.
Following are the legal factors in the Motorola PESTLE Analysis:
Motorola could face a number of issues that could be a result of technological laws. This is why legal compliance plays an important role in the industry. Different countries may have different laws and hence the company should be aware of all of them in order to prevent itself from any lawsuits or legal charges. Labour laws, safety laws and various other laws related to taxation could affect not only its profitability and sales but also its operations. There are also various antitrust laws that the company needs to follow in order to insure fair business practices. these laws insure protection of both customers and the business owners by taking care of it smooth functioning. Apart from this the intellectual property laws plays a major role in protecting the companies patents and valuable ideas which helps them attain competitive advantage and deliver superior performance in the industry.
In the Motorola PESTLE Analysis, the environmental elements affecting its business are as below:
Motorola products that are being produced are in accordance with the environmental factors of the country where it is supplied. These environmental factors could include weather and climate conditions, availability of renewable technology, attitude of people towards eco-friendly products and environmental regulations that are in place to avoid resource depletion by encouraging less use of non-renewable sources. The company should also promote spreading awareness about the same thereby contributing to corporate social responsibility.
electronic waste or e-waste could be very harmful for the environment if they are not disposed properly hence there should be a proper waste disposal method in place to dispose them. This could be done only after a thorough analysis of the pollution levels and types in the operating countries as they differ from one location to another. This helps the company in sustaining for longer terms and stay ahead in the industry.
To conclude, the above Motorola 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.
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