Question

Write PEST analysis for AUDI

Answer 1

PEST Analysis for AUDI:

PEST Analysis describes macro environmental factors such as Political, Economic, Socio-cultural and Technological.

It is used to evaluate environmental forces acting on organisation.

It is a tool to understand market growth or decline, potential, directionn for operations and business positions of the company.

AUDI is a german based company having strong competition in automobile industry across nations. We will analyse macro environmental factors which have impact in AUDI company.Audi has adopted PEST analysis in UAE Market. Let us understand this process in detail in the following paragraphs:

POLITICAL FACTORS:

Government which supports free trade and also promote globalization.

Where Tax-free system exists and also motivates Foreign Direct Investment(FDI)

ECONOMIC FACTORS:

Rise in a fuel price is a concern for Audi

Audit understand the market where there is good labour availabilty.

Country having Inflation effect they will consider to play a lead role in that market

SOCIO-CULTURAL FACTORS:

Audi conducted exhibitions and events

Audi searched availability ofeducated and wealthy market segment of customers.

They aim where multi national population resides, Hence dubai is a perfect place.

TECHNOLOGICAL FACTORS:

Audi searched where good platform for new technologies may exist since people are wwilling to adopt new technologies to enhance their lifestyle.

After analysing the market for Audi by employing this tool they identified five critical factors that aaffect bussiness objectives those are listed below:

1.Intense Competition: Audi faces strong rivalry environment in Dubai since there is no brand that is not found.

2.Bargaing power of customers: With intense competition customer get more choices to decide which brand they should go with.

3.Petrol Price: Rising fuel price discourages peoople to spend on luxurious products like Audi. People prefer savings and utilise the money saved inn some form of investment.

4.Economic Recession:In dubai due to high price of food and transportation inflation tookk place due to which people want to save money as much as posssible. If this trand continues it will definitely affect customer purchasing power. Due to recession and inflation sales also will decrease.

5.Pace of Technological Advancements: Innovation and technology advancement is another issue faced by audi. They must focus on advancing technology to compete with rivalry in the market.