Cartier PESTLE Analysis

Published in Companies category by MBA Skool Team

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

Political Factors:

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

Cartier is present in more than 100 countries and hence it is sensitive to several political factors. There are a lot of countries where political stability is lacking and these countries can hinder investors and stakeholders trust in the performance of the business and eventually hamper the growth of the brand. Cartier has to study the trends of change in the government of every country they are present in because a change in the powers might lead to change in the priorities towards different industries, especially the gold industry because in the last few years people are getting conscious about buying gold that is sourced ethically. Cartier needs to study other factors such as pressure from the protest’s groups, social workers, and worker unions as such protests will directly impact the productivity of the business. Cartier should consider close collaboration with these groups it will enhance Cartier's ability to connect with the community.

Other important factors that should be kept in mind are bureaucracy and corruption level in a region. Operating in a highly corrupted region makes a business environment very volatile, which drives away investors as well as consumers. Entering into a country with high taxation will eventually cut down the profit margins of the company. It should enter into a region where taxes are low because high-profit margin will allow the company to invest more in R&D.

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Economic Factors:

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

Cartier is a luxury brand so it caters to the needs of wealthy people. So, it is important for the brand to study the consumer disposable income in order to expand the market beyond its traditional customers by employing differentiated marketing campaigns.

Cartier needs to make sure that they study fiscal policies, government spending on infrastructure, and indices such as inequality index in order to choose the right market and environment for their product. Cartier needs to study the demand shift of the economy before entering into a market. Due attention should be given to the workforce productivity, the company can target developing countries where labor cost is low and productivity is high.

Social Factors:

Following are the social factors impacting Cartier PESTLE Analysis:

The demographic trend is a very important factor that needs to be studied for a brand like Cartier. Developments such as Brexit can have an impact of social factors globally. Cartier should build capabilities to work in these sensitive environments. Cartier being a luxury brand should analyze the savings pattern of the country as it is a good indicator of disposable income. Another demographic trend such as changing average age is crucial for forecasting demand in an economy. For example, in the US and Europe average age is increasing so the demand for this segment will grow whereas, in younger countries the demand for the younger segment will be higher. So, Cartier needs to study this trend before developing a new product or preparing a marketing strategy.

Technological Factors:

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

Cartier should use the digitalization of various processes to overcome corruption in the economies where corruption has its foothold. It should study the penetration of the internet and mobile phone in the country as it will help in building a requisite business model based on local needs and realities. If there is a high level of investment in the technology development sector then there are is a probability of building a self-sustaining ecosystem that will drive innovation. Cartier can leverage such a situation to hire the best people in business. It should focus on acceptance of Mobile Payments and Fintech services. They should access what mode of mobile payment is widely used in an economy and build its business model accordingly. 5G related infrastructure is around the corner and so Cartier should prepare itself and assess about what level the local market is prepared to roll out the 5G connectivity.

The laws and culture of IPR and other digital assets should be analyzed very carefully by Cartier in every economy so that they can avoid any loss of assets.

Following are the legal factors in the Cartier PESTLE Analysis:

Cartier should do primary research about how much time it takes in a court proceeding in a specific country. Employment and labor laws should be studied carefully because most countries have strict labor laws and it can vary from economy to economy so Cartier must make sure compliances with each country’s laws. Apart from labor laws, health & safety laws are also important to study because different countries have different attitudes towards health & safety so Cartier should do thorough research before entering a new market. With developing technology, data generation is increasing and most countries do not want data of their citizen to be stored outside of the country so Cartier should also make sure that they comply with the government’s policy regarding data protection. One more factor that should be considered is the influence of the government on the judiciary, independent legislature reflects the strength and credibility of the institution in the country.

Environmental Factors:

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

Corporations such as Cartier have realized that they need to be more sustainable in today’s market. Increasing pollution coupled with technological advancement has compelled businesses to implement more efficient recycling methods, some countries have placed some stringent norms in terms of waste management so it is crucial for Cartier to adopt these methods in concerned economies. Climate change can impact global corporations because the extreme climate in one country could lead to supply chain disruption so Cartier should build a flexible supply chain to avoid these bottlenecks.

The role of environmental agencies is critical in safeguarding norms and powers and the roles of agencies vary from country to country so Cartier needs to study these patterns and make sure they duly comply with these rules and regulations to maintain a good image in the eye of its consumers. It has progressed towards ethical sourcing of its gold and they have also made sure that no child is used as a labor in the extraction of gold. Cartier should focus on corporate social responsibilities according to the regions.

To conclude, the above Cartier 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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