Dell Pestle Analysis

• 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 currency fluctuation also determine the profitability of a company.

c) Social

The national demand for computers is dependent on the educational level prevailing in a specific country. The higher