Pestle Analysis Of Volvo

VOLVO Group Hungary

Student Name: Peter Stern

Student Number: 00401881

Marketing and Services Management

To: Marketing Director

From: Marketing executive

Subject: Marketing Activities of Volvo in Hungary

Date: October 16, 2014

Table of Contents

Executive Summary

PESTEL Analysis

Segmentation, Targeting and Positioning (STP)

Promotional Mix

Conclusion

Bibliography Page

1 Executive Summary

This report was commissioned to give an overview picture of the Hungarian automobile market and create a successful way of growing the business to Volvo by penetrating its market in Hungary.

A complete analysis of the Hungarian macro environmental market is made to explain the external factors that may influence the company. The analysis is followed

At the end I will present the SWOT analysis that will give an overall evaluation of the company strengths, weaknesses, opportunities and threats.

The Macro-environmental factors and influences are analyzed according to the PESTLE analytical technique.

A PESTLE analysis is a useful tool for understanding the ‘big picture’ of the environment in which an organisation is operating. Specifically a PESTLE analysis is a useful tool for understanding risks associated with market (the need for a product or service) growth or decline, and as such the position, potential and direction for an individual business or organisation.

Political

Hungary, as a small country whitin the EU-28, is trying to encourage companies like Volvo to enter the Market. Hungary is a member of EU and NATO, which gives a clear picture that the political environment is stable and promising.

Economy

One of the main economic factors in Hungary is the employment level. With the high level of unemployment of 32.3%, our company can employ people and contribute to the employment process of the Country. The Demand will be very price sensitive on the targeted group because of the high unemployment. The inflation rate is on a stable bases, so Volvo will be safe from losing the value of the money and capital which is invested in Hungary (Central Intelligence Agency,

Internal Factors

Strengths

Volvo Company are defined within the company organization and brand name. When people say Volvo the first thing they think of is safety. Another strength that is making Volvo cars more attractive is that they offer a flexi-fuel. This relatively new invention can be offered in the region of Hungary and encourage the people to become even more eco friendly and use this type of engines. It is also a cheaper alternative of petrol. The luxury of the Volvo automobiles can also be listed as strength because of the size and comfort that is offered with the car. Another strength that Volvo has is the quality.

Weaknesses of the Company Volvo are mostly connected with its design, model and innovation. However one of the major weaknesses for Volvo is the high price and it is not affordable to many people. Other weakness will represent the lack of modern design. Volvo has to improve the design of the automobiles and point out the uniqueness. Another important weakness is the lack of Volvo promotions. Volvo has to give back the feeling that we still exist to satisfy our customers.

External