Question

PESTLE Analysis for Apple Air Pods to enter Vietnam (As if it hadn't yet)

Answer 1

• As given in the question, Apple is going to launch Apple Air Pods in Vietnam. So, before entering the market all the factors related to the country that can impact Apple Air Pods launch should be analysed. For this purpose PESTLE analysis is required. Let's discuss all the factors step by step as following:

PESTLE ANALYSIS:

1) Political factors

• Vietnam is gradually adopting mixed economy.
• In Vietnam government still plays an important role in planning and governing process.
• Market economy of Vietnam is still not clear for the companies from the outer world.
• According to the official documents, market economy of Vietnam still has the socialist orientation.
• State owned enterprises are still in decisive role for the Vietnam economy.
• This leads to a halt for enabling BE and threats are always there for private SME's in Vietnam.

2) Economic factors analysis

• Vietnam has a stable and high economic growth like 7℅ average for the last decade.
• Inflation is high around (9 - 11)℅ and due to this local enterprises are facing challenges in getting access to expensive credit and financial management.
• Interest rates on saving are high around (13 - 17)℅ and currency devaluation is three times to 2010.

3) Social factors analysis

• Young generation in Vietnam is high about 46℅ of the total population and are in working age.
• Around 1 million new people entry in the labor market every year.
• Overall productivity is extremely low in Vietnam as per the reports.
• Vietnam is the only country in Asia in top 5 of the 2009 Happy Planet Index(HPI) announced by New Economics Foundation (NEF) in july 2009.
• Due to the political regime, peace and economic growth, people of Vietnam are very optimistic for their future.

4) Technological factors analysis

• Due to the increasing demand of electricity or power, Vietnam is facing challenges of power shortage nowadays.
• Internet facilities are accessible widely in Vietnam with reasonable prices.
• For software products, counterfeit and imitation are widespread in Vietnam.

5) Legal factors analysis

• Vietnam has laws like Enterprise laws, Investment laws and other global and regional agreements( WTO, ASEAN) in theory.
• SOEs, private enterprises, joint ventures and all other kind of enterprises has to follow the same rules and regulations according to the laws.
• In real situation, due to the poor quality of human resources in public service and corruption issues, implementation of laws is a real challenge in Vietnam.

6) Environmental factors analysis

• Vietnam is one of the most vulnerable countries having a long coastal border(2500km).
• In Vietnam high chances of natural disaster risks, climate change and sea level rise are there.
• Environmental factors in Vietnam should be taken seriously by the enterprises in their business planning and operating processes.
• People in Vietnam are very sensitive towards the environment and they do not tolerate any harm to environment by business practices easily.

So, this is the PESTLE analysis for Apple Air Pods to enter the market of Vietnam. Apple should consider each factor seriously in order to launch Air Pods successfully in Vietnam. Apple may go for some trials also.

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