StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

PESTLE and SWOT Analysis of Aston Martin - Essay Example

Cite this document
Summary
The paper "PESTLE and SWOT Analysis of Aston Martin" will begin with the statement that in recent times, as the standard of living is increasing and there is an improvement in the overall quality of life lived, a rising number of consumers are willing to spend on luxury goods…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER94.2% of users find it useful
PESTLE and SWOT Analysis of Aston Martin
Read Text Preview

Extract of sample "PESTLE and SWOT Analysis of Aston Martin"

Aston Martin Module Group Module Assessment Assignment ID Number Table of ContentsTable of Contents 1 Introduction 3 PESTLE Analysis 4 Political Factors 4 Economic Factors 4 Socio-cultural Factors 5 Technological Factor 5 Legal Factor 6 Environmental Factor 6 Customer Analysis 6 SWOT Analysis of Aston Martin 8 Strengths 8 Weaknesses 8 Opportunities 9 Threats 9 Recommendation 10 Conclusion 10 References 11 Introduction In the recent times, as the standard of living is increasing and there is an improvement in the overall quality of life lived, a rising number of consumers are willing to spend on luxury goods. Aston Martin comes under the luxury car segment and is a highly reputed brand in the global automobile market. UAE is represented as a wealthy country with high GDP having a relatively higher consumer purchasing power (Conner, 2008). This study would focus on the viability of Aston Martin entering the United Arab Emirates automobile market. This essay analyses the country and the market specific factors and strategies to be implemented by Aston Martin in order to deal with the macro environmental market changes. The essay analyses the company and the country by performing PESTLE, SWOT and customer analysis to assess the market change. Finally, the study recommends how the company should plan its marketing strategies to survive in the UAE market. PESTLE Analysis Political Factors The Government of UAE focuses on trade development other than the oil industry. After the build-up of the credit boom, UAE had turned itself to an international trade hub as well as a financial gateway of the Middle East (Khamis, Al-Hassan & Oulidi, 2010). UAE is among world’s tax-free country where the government uplifts international as well as national trade and has set up tax free zones where the citizen enjoys the liberty of no tax policies. Custom duties are exempted and allow 100% foreign investment ownership (Tribe, 2011). There is no tax levied on capital gains, sale of product and individual salaries, therefore, income level and standard of living is high as well as attracted foreign investors to invest in the country (Britain, 2008). Economic Factors United Arab Emirates is a modern country and has a high standard of living. It has strong market opportunities in national as well as international trade in product and services among all sectors due to its high per capita income. It implements attractive trade, economy and tax policies for foreign investors thereby encouraging FDI and other global trade investments (Tribe, 2011). UAE earns its major fiscal revenues from its oil exports. Finance inflow is high in the country due to strong trade in all industrial sectors. High quality infrastructure, roads, aviation, electricity and power, low oil prices has uplifted automobile industry in all segments (Conner, 2008). The major long term economic challenges in the UAE are high debt issues in Dubai, major dependence on the oil business sector and growth of inflation. Hence, the government has structured its policies to regulate existing problems by focusing on diversified economy (Neal & Strauss, 2008). Socio-cultural Factors The main population centred on Dubai and Abu Dhabi. Workers from different nations come to UAE for work. It has high employment rates and is the hub for labour market with mainly youth workers. The country has both high level and mid level income group setting opportunities for consumer as well as luxury brands (Tribe, 2011). The country lacks infrastructure, expenditure and policy development for educational system and has a high illiteracy rate which affects the social development. The UAE government has now taken initiatives and launched agendas for improvement of educational qualities and facilities (Al-Ansari, 2014). Technological Factor The country’s main area of importance is on the Information technology and telecommunication sector. The dependence on international technological workforce, knowledge and facilities is high but its lack of knowledge in educational science decreases its technological development in the home country (Mennen, 2011). Therefore, high technological advances in industries are welcomed by the country from the foreign investors leading to top global brand investments in all sectors like automobiles, apparels, manufacturing companies etc (Al-Ansari, 2014). Legal Factor The legal system in UAE is highly organized. Each emirate can take part in the federal legal system and retain its legal polities. The law and regulatory policies implemented by the government of UAE and followed by the country is beneficial for foreign investments and international trading corporations (Mennen, 2011). There is no tax and custom duties in the trade free zones though the government instructs that all the companies in UAE needs to own 51% of local ownership stake which has an undesirable effect on foreign direct investments (Al-Ansari, 2014). Environmental Factor The water resource scarcity is high and carbon dioxide emission is high in UAE due to the petroleum industries and automobile emissions (Goldstein, 2009). These factors lead to environmental depletion and obstruct sustainable growth. The government of UAE has taken strict measures on the environmental degradation issues and has initiated developmental programs to bring equilibrium between environment and economy growth. It has taken initiative to implement plants and processes on desalination of water as well as recycling of waste water to meet water needs (Hill & Alexander, 2006). Customer Analysis The target customers who dominate the luxury car segment in UAE are the young buyers having higher annual family income. They are well informed about their specific needs and which brand to go for (Taylor, 2013). They gather most of the information through the internet as well as the traditional medium like showroom visit or magazine advertisement where the car features are consumer specific. Though the consumers resort to internet research for their future purchases but their final buying decisions are influenced through sociological behaviours (Pride & Ferrell, 2012). The decisions are taken on the basis of information and influences from trusted sources like friends, families and word of mouth. The car purchaser in UAE are well versed with their buying behaviours and therefore luxury automobile companies tend to draw their knowledge on the consumer needs, experience, satisfaction and loyalty through consumer interactions (Uhlein & Claussen, 2006). As buying decision for luxury car takes a longer span of time therefore, pre purchase interaction and post purchase interactions are very important. Through these interactions, the luxury car companies analyse the view point of the consumers, rival brand preferences, the consumer specific buying process, the importance of prepaid maintenance, the financing preferences of the buyers (Hayes & Dredge, 2009). The consumers prefer features in the luxury car brands like the class, brand image, identity, the brand equity, aesthetics, comfort, style, excitement and functionality which sets them way apart from their peers and reflects a sense of superiority as well as authority (Mikhayhu, 2012). The growth of the luxury car market in UAE is due to the economic growth of the country resulting in higher purchasing power of the consumers. Dubai and Abu Dhabi is fast growing in tourism and is positioned as the shopping destination for the ultra rich and high income group. Therefore, establishment and growth of luxury brands in all sectors are booming in the market at an international level (Cemal, et.al., 2011). The consumer segment of the luxury car industry in UAE are brought up in a brand conscious society and the main customer base of UAE in the luxury brand market are the rich citizens of UAE, high earning group of western emigrants and tourists from China and Russia. From the age perspective, younger generations are more attracted towards luxury goods and the demand of it increasing due to the heightened interest on products of quality within the social group (OGuinn, Allenn & Semenik, 2011). The increase in consumer awareness on brands leads to a better positioning of the luxury brands like automobiles. Since luxury brand market is fragmented as well as highly competitive, it depends on customer experience and brand awareness which is both present in the UAE luxury market (Timm, 2009). Moreover, the tax free policies of the country have led to affordability of the luxury products due to decrease in its price range hence increasing the spectrum of customers (Kumar, 2009). SWOT Analysis of Aston Martin Aston Martin is a luxury car brand dealing mainly on sports cars in the premium car automobile sector. The company’s tagline is “Power, Beauty & Soul” and its unique selling proposition focuses on powerful performance and ultimate luxury(Aston Martin, 2015). The car brand targets on ultra high income group and elite class consumers and is positioned as the car with exclusive luxury, delivering unmatched performance consistently for several years, hence, providing high value to its customers (Kapferer, 2012). Strengths Aston Martin is among the market leaders, delivering a higher brand value and brand worth. Increased customer experience and strong consumer connect due to its rich historical heritage (Goldstein, 2009). Creates a sense of class among the customer due to its rich brand image (Macinnis & Park, 2009). High in performance and among the best sports car brands proving speed, power, style and luxury in one car (Kapferer, 2012). Innovative and advanced technological features providing the best experience to its users (Kapferer, 2012). Weaknesses Low penetration in the market due to high competition from other luxury car brands. Lesser product portfolio and low presence in developing countries due to premium pricing and low potential customers (Kapferer, 2012). High maintenance cost. Poor after sales service. Fuel inefficient car. Opportunities High potential of growth in the UAE market. Increase of demand due to high affordability of the consumers in UAE. As per Reuters (2010), the sales of car to increase to 240,000 units after 2011 (Kapferer, 2012). Sales increase due to low regulation and no barriers on import of automobiles in the UAE. Brand image leads to higher customer acquisition. Through upgraded promotional strategies and widespread distribution can gain higher market penetration (Kapferer, 2012). Threats High competition from other luxury car brands like Ferrari and Rolls-Royce. After the Dubai financial crisis and oil price rise posing challenge to the premium car sector. Non compliance with the low carbon emission regulations and it is a fuel inefficient car segment (Kapferer, 2012). Recommendation On analysing the potential macro environmental factors of the UAE automobile market in the luxury car segment, Aston Martin might face strategic challenges in order to survive in the competitive market (Fombrun, Gardberg & Sever, 2008). The main challenges the company can face in the UAE market is the threat from competitors. Then the environmental regulation policies introduced in the country may affect the sales of the cars as they are not in compliance with the carbon emission policies. As the customer base in USA has a high income level and are socially influenced by status, class therefore almost every consumers are premium car owner leading to market saturation, hence, it would be a challenge for Aston Martin to penetrate into the market (Mennen, 2011). Aston Martin should concentrate on new product development for the UAE market by introducing environment friendly premium car segment like electric cars or hybrid engine technology. It should expand its customer base and enhance customer experience and loyalty through well structured customer relationship management processes leading to higher market penetration (Little & Marandi, 2007). Conclusion The entire discussion of the report analysed the macro environmental factors and consumer analysis of the UAE automobile market in the luxury car segment. On basis of the analysis, the micro environment of the company Aston Martin was estimated and recommendations were made on the new marketing strategies the company can implement in the UAE automobile market. References Al-Ansari, Y. D. Y. (2014). Innovation practices as a path to business growth performance: a study of small and medium sized firms in the emerging UAE market. Southern Cross University ePublications, 1-368. Aston Martin. (2015). Our Company. Retrieved from http://www.astonmartin.com/. Britain, G. (2008). Consumer Choice: competition and prices. (5th ed.). London: Routledge. Cemal, Z., Azize S., Hakan K. & Mehtap Ö. (2011). The Effects of Brand Communication and Service Quality in Building Brand Loyalty through Brand Trust; The Empirical Research on Global Brands". Procedia Social and Behavioral Sciences, 24, 1218–1231. Conner, P. M. (2008). Customer Satisfaction: The Customer Experience Through the Customer Eye’s (6th ed.). London: Thomson. Fombrun, C., Gardberg, J. & Sever, J. (2008). The reputation quotient, a multi stakeholder measure of corporate reputation. Journal of Brand Management, 7, 241–55. Goldstein, S. D. (2009). Superior customer satisfaction and loyalty (5th ed.). London: Chapman and Hall. Hayes, J. & Dredge, F. (2009). Marketing and Customer Behaviour (3rd ed.). London: Harvester Wheatsheaf. Hill, N. & Alexander, J. (2006). The handbook of customer satisfaction and loyalty measurement (3rd ed.). New York: Free Press. Kapferer, J. N. (2012). The luxury strategy: break the rules of marketing to build luxury brands. London: Kogan Page Publishers. Khamis, M. Y., Al-Hassan, A. & Oulidi, N. (2010). The GCC Banking Sector: Topography and Analysis. Washington DC: International Monetary Fund. Kumar, S. R. (2009). Consumer Behaviour and Branding (6th ed.). Oxford: Blackwell Publishing. Little, E. & Marandi, E. (2007). Relationship Marketing management (4th ed.). London: McGraw-Hill Higher Education. Macinnis, D. J. & Park, C. W. (2009). Handbook of Brand Relationships (4th ed.). London, Thousand Oaks CA: Sage Publication. Mennen, M. (2011). Private label brands are a threat for high value manufacturer’s brand such as "Charmin" (4th ed.). London: Palgrave Macmillan. Mikhayhu, A. S. (2012). Customer Retention (5th ed.). New Delhi: Global Indian Publications Ltd. Neal, W., & Strauss, R. (2008). Value Creation: The Power of Brand Equity (4th ed.). London: Palgrave Macmillan. OGuinn, T. C., Allen, C. T. & Semenik, R. J. (2011). Advertising and Integrated Brand Promotion (4th ed.). New York: Physica-Verlag. Pride, W. M., & Ferrell, O. C. (2012). Foundations of Marketing (6th ed.). Oxford: Blackwell Publishing. Taylor, S. A. (2013). Affect and marketing stimuli in consumer loyalty decisions to automobile insurers. Journal of Financial Services Marketing, 18(1), 4-16. Timm, K. (2009). How to Measure Customer Satisfaction (6th ed.). London: McGraw-Hill Education. Tribe, J. (2011). The Economics of Recreation, Leisure and Tourism. London: Taylor & Francis. Uhlein, V. & Claussen, N. (2006). The Art of Gaining and Retaining Customers (3rd ed.). London: Harvester Wheatsheaf. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(Aston Martin Essay Example | Topics and Well Written Essays - 1750 words, n.d.)
Aston Martin Essay Example | Topics and Well Written Essays - 1750 words. https://studentshare.org/marketing/1879287-aston-martin
(Aston Martin Essay Example | Topics and Well Written Essays - 1750 Words)
Aston Martin Essay Example | Topics and Well Written Essays - 1750 Words. https://studentshare.org/marketing/1879287-aston-martin.
“Aston Martin Essay Example | Topics and Well Written Essays - 1750 Words”. https://studentshare.org/marketing/1879287-aston-martin.
  • Cited: 0 times

CHECK THESE SAMPLES OF PESTLE and SWOT Analysis of Aston Martin

SWOT, and PESTLE Analyses of Virgin Media

The assignment "SWOT, and PESTLE Analyses of Virgin Media" focuses on the critical analysis of the strategies of Virgin Media, a subsidiary of Virgin group and a company listed in the London Stock Exchange.... One needs to analyze the strategies of the company with the help of tools like SWOT and pestle and study its impact on the financial performance of the company with the help of ratio analysis....
8 Pages (2000 words) Assignment

Issues at Aston Martin

It will highlight the marketing and promotional strategies of aston martin and thereafter in-depth analysis of the internal and external environment of the company will be carried out.... The major competitors of aston martin include SRT Viper, McLaren Nissan, Ferrari, and Bugatti among the others.... This essay "Issues at aston martin" presents the problems faced by a company in automobile sector.... In order to carry out the study, aston martin was chosen as the company....
12 Pages (3000 words) Essay

Strategic Objectives of the Business

Strategic Objectives of the BusinessBefore the problems and challenges being faced by High Street Heaven are identified it is important to establish the strategic objectives of the business, according to Bartol and martin (2005) objectives and goals that are said to be strategic are extensive aims that are developed by the top management.... Discussion of findings from SWOT and PESTLE analysis – Problems and ChallengesA SWOT helps managers to understand the threats and weaknesses of a business along with its strengths and opportunities (Bartol and martin, 2006)....
7 Pages (1750 words) Essay

Strategic Analysis of Aston Martin

The paper "Strategic analysis of aston martin" discusses that the greatest change that would be required is that the temporary layoff or the option of sending employees on sabbaticals or extended leaves on 1/3rd pay, will not be open anymore to Aston Martin if they opt for stepping up production.... It is essential to state that found in 1913 as Bamford –Martin Limited by Robert Bamford and Lionel Martin, aston martin's name was conceived after success at Aston Hill Climb....
7 Pages (1750 words) Research Paper

Success of Leading Organizations Such as Nike

The paper "Success of Leading Organizations Such as Nike" highlights that generally speaking, looking at the PESTEL framework shown above one can observe that the organization is affected by almost all or some of the environmental factors in the framework.... ... ... ... Today's business environment is increasingly becoming more turbulent, chaotic and challenging than ever before and to survive, it is vital that a firm can do something better than its competitors ( Kanter 1995)....
8 Pages (2000 words) Essay

The Morale of the Automobile Industry: Aston Martin

The paper 'The Morale of the Automobile Industry: aston martin' looks at aston martin, which has proved itself one of the finest luxury & sports car brand exuding and speaking of British style.... A shock to many British people came when Ford acquired 100% holding in aston martin in 1994.... The author states that in 2007, aston martin was sold to a consortium of two major international investment houses Investment Dar and Adeem Investment, a deal that brought it back under partial British control....
7 Pages (1750 words) Assignment

Strategic Management at Aston Martin

The brand name of aston martin is strongly associated with the name of James Bond.... The first car had rolled out with the brand name of aston martin in 1915.... The writer conducts PESTEL, five forces, and swot analysis.... The goal of the present study is to describe the evolution in the ownership, management, strategy making, product portfolio and performance through the passage of time at the aston martin Company.... aston martin Lagonda Ltd....
13 Pages (3250 words) Case Study

Issues at Aston Martin

Furthermore, the company also has a store that directly sells the products and accessories of aston martin.... The paper "aston martin: A Brief Overview" states that aston martin Lagonda Limited, or what we usually call aston martin, is the designer, manufacturer and marketer of deluxe sports cars.... aston martin has a variety of cars in the sports car section, but they hardly manufacture any commercial or family cars....
12 Pages (3000 words) Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us