- Category: Business , Economics
- Topic: Corporations , Entrepreneurship
A PESTEL analysis is a valuable tool for identifying macro forces that impact an organization, with the acronym standing for Political, Economic, Social, Technological, Environmental, and Legal factors. Applying this framework to Amart Company and their VANGURAD G4 product reveals key insights.
Political Environment:
The Republic of Sri Lanka has introduced policies that encourage new creations and aim to position the country as an economic hub in the Indian Ocean. This is a valuable opportunity for Amart Company and their modern washing machine. However, political instability is a major issue in Sri Lanka that affects the economy, leading to product sales and income reduction, inflation, and depreciation of currency. Additionally, political power and corruption can influence the market negatively, making it crucial for companies like Amart to compete through unique and modern designs.
Economic Environment:
The high inflation rate in Sri Lanka has led to increased product costs and reduced sales for new creations. Additionally, high-interest rates make it difficult for companies to secure bank loans and hinder profitability for new projects.
Socio-Cultural Environment:
Understanding the lifestyles and age structures of customers is critical for marketing the VANGURAD G4 product successfully. The advanced washing machine is best marketed towards middle to upper-class customers with small children and elderly people in homes. As such, Amart Company has chosen to sell VANGURAD G4 in stores within the Western Province, as well as in main city towns in other provinces.
Technological Environment:
The internet and communication advancements have opened up opportunities for Amart Company to research modern washing machine models and improve product design according to customer needs. Social media is a suitable medium for marketing, and e-payment systems make payment for VANGURAD G4 easy and convenient. The use of production automation has also been implemented, as it significantly saves time in manufacturing by collecting mechanical parts, fixing them, and packing for faster delivery to customers.
Introducing sound control technology to the world has brought about a useful tool that we have incorporated into our product. Thanks to the purchased user's voice, we were able to build a feature without much hassle. In terms of the ecological environment, our product has proved especially helpful during rainy seasons, thanks to its ironing feature, which quickly washes clothes. This has resulted in us targeting areas that receive frequent rainfall to increase sales. Additionally, during pandemic times, our VANGURAD G4 product makes cleaning and disinfecting surfaces much easier in light of the COVID-19 virus.
Natural disasters pose a challenge to our business operations, with product transportation to customers becoming difficult. Despite this, we strive to uphold consumer protection laws by offering a warranty period, affordable prices, and efficient services to our products. We have also taken extra precautions to provide our employees with special protective clothing and ensure their safety while working. Furthermore, we offer them timely salary payments and leave benefits, as required by employee law. Our commitment to the health and safety of our employees extends to our customers, for whom we provide protective gear and conduct regular clinical programs.
In summary, in a world of evolving environmental, legal, and health challenges, we remain proactive and committed to providing our customers with efficient and quality service. Our sound control technology serves as a testament to this commitment, and we continue to prioritize customer satisfaction and safety.