Type
Essay
Pages
2 pages
Word Count
438 words
School
N/A
Course Code
N/A

Dell Pestle Analysis

August 13, 2013
* 2.1 PEST-analysis
In the following, the analysis of the political, economic, social and technological factors
leads to a description of the macro environment of the computer industry.
a) Political
Political factors include government regulations and legal issues determining the
conditions under which companies have to operate. In this field, the computer industry has
to face certain restraints. Problems can arise in countries where political stability is not
guaranteed, no matter whether companies operate production facilities or if they do
business with that country through exports. Many countries still have restrictive policies
which are maintained to protect domestic manufacturers and production. Such policies
often hinder foreign companies from entering into these markets. The only possibility to
do business in those countries is to establish partnerships with local companies, where they
are additionally forced to accept minority shares and to provide money and technological
know-how. However, the computer industry sees great potential in those countries which
loose their restrictions.4 This is especially true for China which has opened for many
industries since its accession to the WTO in 2001. In the course of globalisation trade
barriers decline and new markets emerge, allowing free trade to expand.
b) Economic
The computer industry expects a growth of approximately ten percent over the next years.5
This growth is influenced by the economic situation in a specific country, having an impact
on the purchasing power of potential customers. Additionally, changing inflation rates and

Subscribe Now

Sign up to view full document

View Document