Do a full pestel analysis on Alienware computers
Explain the impacts of demographic, political, economical, social/cultural, technological and legal trends.
A PEST analysis is an analysis of the external macro-environment that affects all firms. P.E.S.T.is an acronym for the political, Economic, Social, and technological factors of the externalmacro-environment. Such factors
usually are beyond the firm’s control and sometimes presentsthemselves as threats. For this reason, some say that “PEST” is an appropriate term for these
factors. However, changes in the external environment also create new opportunities and theletters sometimes are rearranged to construct the more optimistic term of STEP analysis.
Many macro-environmental factors are country-specific and a PEST analysis will need to beperformed for all countries of interest. In the following, the analysis of the political, economic,social and technological factors leads to a description of the macro environment of Dellcomputers. Like in all markets, DELL computers is also subject to laws that regulate virtually all aspects of their business, including such areas as health safety, pollution, and advertising and labelingrequirements. Problems can arise in countries where political stability is not guaranteed, nomatter whether companies operate production facilities or if they do business with that countrythrough exports. Many countries still have restrictive policies which are maintained to protectdomestic manufacturers and production. Such policies often hinder foreign companies fromentering into these markets. The only possibility to do business in those countries is to establishpartnerships with local companies, where they are additionally forced to accept minority sharesand to provide money and technological know-how. However, DELL computers sees greatpotential in those countries which loose their restrictions.
Economic environment refers to the aggregate of the nature of the economic system of thecountry, the structural anatomy of the economy to economic policies of the government, theorganization of the capital market, the nature of factor endowment, business cycles, thesocioeconomic infrastructure etc. The economic environment includes factors and trends relatedto income levels and the production of goods and services. The economic environment consists
The political environment of a country is influencedby the political organisations such as philosophy of political parties, ideology of government or party inpower, nature and extent of bureaucracy influence of primary groups etc. Political factors includegovernment regulations and legal issues determiningthe conditions under which companies have tooperate. In this field, DELL computers has to facecertain restraints.
PEST analysis includes four factors:
Other factors for the various offshoots include:
More factors discussed in the SPELIT Power Matrix include:
Impacts of demographic, political, economical, social/cultural, technological and legal trends are:
Ecological factors – Air quality, transportation, parking, pollution discharge, water quality, waste management, land use, coastal resources etc.
Legislative requirements – Primary and secondary legislation in relation to Health Bills e.g. employment laws, contracts over rights of staff, rights of patients, direct payments etc.
analysis – Demand, liaison and selection for services,
products and/or component parts on the basis of price, quality,
delivery times and services support; market knowledge, forecasting,
purchasing strategies, liaising with users, business