Mercedes Benz Group is an automobile manufacturing German multinational company. Gottlieb Daimler and Carl Benz founded the automobile company in 1883. The company has a production capacity of producing approximately 2491600 vehicles in 2023. Today, we’ll discuss the PESTLE analysis of Mercedes Benz; it focuses on external environmental factors like; political, economic, social, technological, legal, and environmental factors.
Political Factors Impacting Mercedes Benz
Some of the main political factors in the Mercedes Benz PESTLE analysis are as follows;
I-Trade Policy
The trade policy of countries keeps on changing depending on various economic, political, and geographic factors. For instance, the Pakistani government and other developing countries banned the import of luxury vehicles of Mercedes Benz and other brands. It was because of the fact that they had limited resources in their foreign reserve and other financial reasons.
II-Taxation Policy
Countries and governments change their taxation policy depending on foreign and international relations. For instance, if a globalized and open political party comes into power, they focus on a free trade policy and lower taxation policy to attract potential new investors. On the other hand, the nationalistic government would oppose global influence and they would increase taxes to discourage potential new investors.
III-Political Stability
A stable political environment plays a key role in the growth of businesses and companies. Mercedes Benz procures raw materials, automobile parts, tools, components, and equipment from various countries. In case of political turmoil, roadblocks, procession, and other conflicts, they would disrupt the supply chain and distribution of materials, parts, and components. It negatively impacts the production and manufacturing processes of the company.
Economical Factors Affecting Mercedes Benz
Some of the main economic factors in the Mercedes Benz PESTLE analysis are as follows;
I-Interest Rate
The country’s interest rate is one of the main economic and financial indicators and it directly impacts the sales and revenue of Mercedes Benz. For instance, if the central bank increases the interest rate, it makes the business loans expensive; discourages potential new investors, and decreases the sale of automobiles. This is because people prefer to save their disposable income due to higher interest rates, instead of buying luxury vehicles.
II-Inflation Rate
The country’s inflation rate is the other key economic indicator and it negatively impacts buying power of people. For instance, when the government and the central bank start printing more currency notes to pay off their local debts, then it decreases the original value of the existing currency. As a result, things become unaffordable to many people, and they stop buying luxury products.
Social Factors Impacting Mercedes Benz
Some of the main social factors in the Mercedes Benz PESTEL analysis are as follows;
I-Demographic Shift
The global population has been increasing significantly for the past few years. The living standards and financial condition of people have been improving due to the entrepreneurial mindset and financial awareness. The changing demographics with more resources increased their affordability and it makes them desire and buy luxury vehicles for a better traveling experience.
II-Cultural Norms
The cultural norms of different societies in various countries play a key role in the growth of businesses and companies. Some cultures don’t appreciate and value luxury products and boastful attitudes. On the other hand, it is normal and acceptable to market and advertise luxury vehicles and artifacts. Mercedes Benz should carefully analyze the cultural factors while launching and advertising its products in another country.
Technological Factors Affecting Mercedes Benz
Some of the main technological factors in the Mercedes Benz PESTEL analysis are as follows;
I-E-commerce Platform
Mercedes Benz has developed an advanced e-commerce platform to keep up with the growing online shopping trends. The online platform allows the company to connect and engage with the targeted customer market directly without involving any intermediaries. Most importantly, it allows them to customize their vehicle order based on their specific needs and demands.
II-Tech Innovation
Mercedes Benz invests a significant amount of capital resources in research and technological development. It allows them to develop unique designs and achieve operational efficiency by developing efficient parts and equipment. As a result, it helps the company to develop and design vehicles and cars with more features of safety and comfort to increase the overall traveling experience of customers.
Legal Factors Impacting Mercedes Benz
Some of the main legal factors in the Mercedes Benz PESTEL analysis are as follows;
I-Consumer Safety Laws
Mercedes Benz should comply with the consumer safety and vehicle safety and security laws of different countries. It comprises developing safe and secure vehicles for customers, and regulatory compliance would help the automobile brand to smoothly perform its production and distribution operations without any delays and disruption.
II-Labor Laws
Mercedes Benz has a very large database of workers and employees in various countries and the company’s supplier factories. The automobile brand should comply with labor laws, working conditions, employment contracts, compensation, and benefits.
Environmental Factors Affecting Mercedes Benz
Some of the main environmental factors in the Mercedes Benz PESTEL analysis are as follows;
Sustainability Initiative
Mercedes Benz has made a strong commitment to environmental sustainability. The automobile brand has taken various environmental sustainability initiatives like developing electric automobiles, hybrid vehicles, fuel-efficient cars, renewable sources of energy, and using sustainable materials to decrease the carbon emission rate and the carbon impact on the environment.
Conclusion: Mercedes Benz PESTLE Analysis |PESTEL Analysis of Mercedes Benz |External Environmental Analysis of Mercedes Benz | Strategic Analysis of Mercedes Benz
After an in-depth study of the pestle analysis of Mercedes Benz; we have realized that Mercedes Benz is the world’s leading luxury automobile brand. If you are learning about the Mercedes Benz PESTLE analysis; then you should keep in mind the abovementioned external environmental factors like; political, economic, social, technological, legal, and environmental.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
