Question

Im suppose to create a PESTEL analysis for Volkswagen. Im struggling with coming up with ideas for the sections. Any help would be appreciated.

P - Politcal

E - Environmental

S - Social

T- Technological

E - Environmental

L - Legal

Answer 1

PESTLE Analysis of Volkswagen Group

Political factors= United States and the United Kingdom are the prime markets for the company but due to current political and trade war among the major countries, there is serious doubt about the imposition of various trade tariffs

Economic factors= There is a recent trend in the customers that they are willing to buy more products that have the capability of satisfying their requirements. The company has been quite good at dealing with and satisfying the high expectations of the customers in the past. This poses a good opportunity for the company to have an increased revenue due to increased consumption pattern of the customers.

Sociocultural factors= Most of the customers have a certain brand perception and if we talk about the company’s brand perception, it is above average but some of the brands such as Seat and Skoda are no that appealing to the customers. Moreover, the customers are also going away from the driving and they are opting for more environment-friendly practices such as using bicycles,, ride-sharing apps. This could impose serious threat for the sales of the cars of the company

Technological factors= The development of self-driving cars, green cars is imposing serious threats to the company. The company has to invest a lot in these two areas if it wants to sustain itself for the long term

Legal factors= In past the company has been involved in emission scandals and there were many legal cases against the company that results in the loss of millions of dollars and created a bad reputation for the brand. The company has to cope p with it

Environmental factors= the customers are now getting more attracted towards green technology or cars. Thus the company has to invest in this regard.