Environment analysis of Germany and Expansion of BYD Co., Ltd 03013 Essay

Environment analysis of Germany and Expansion of BYD Co., Ltd 03013 - Essay Example The Third section is based on the recommendations of market entry strategy, and Section four includes marketing mix. The last section is based on the conclusion. Environment analysis can be divided into two segments macro and micro. The best common tool that is used to conduct the macro environmental analysis is PESTLE analysis (Bensoussan and Fleisehr 2012 and Jain, Trehan, and Trehan, 2009). 1) In Germany political conditions are in favor of the automobile industry, the government has policy to support the car industry through funding. In 2013, according to the estimates, the government made $1303 funding on per vehicle produced (The Conservation 2013). 2) The Country has policy to give a political response to the industry in case of crisis. For example, in response to 2008 crisis, a significant downturn in the European market by 11% was encountered; in response to the downturn, Germany introduced several scrapping schemes that helped in increasing the demand of cars (OECD, 2009). 3) The Government had significant policies to encourage the electro-mobility initiatives and had introduced a â€Å"national electro-mobility development program† with more than 500 million euro investment (Germany Trade & Invest 2013). 4) The Government has policies to invest in new technologies and committed to spending EUR 70 billion on research and development on annual basis. Germany is the leading nation in term of research and development expenditures and the auto industry acquire more 1/3 of the R&D expenditures (Raj 2014; Germany Trade & Invest 2013). Political factors have a significant impact on businesses. In Germany, the government has significant support to promote automobile manufacturers. The Government has policy to support manufacturers in crisis, has significant funding policies to encourage technological advancement and electro-mobility initiatives. Therefore, if the company decides to