Oppo PESTLE Analysis
Detailed PESTLE analysis of Oppo examining political, economic, social, technological, legal & environmental factors.
Political Factors:
Oppo is largest smartphone manufacturing company in China since 2016. Since it is a Chinese company and has its subsidiaries all around the world it has to consider the political factors that influence its business in various country setup. The biggest political fight is ongoing with USA and is a trade war. Both the sides are hiking the taxes imposed on each other’s imports. Since the import and export rates are hiked as much as 25% the profitability of the firm declines. Before OPPO enters any market, it should understand the political scenario of that region. Frequent change in power introduces changes in governing policies. Also, if the region is scared to be invaded by military then OPPO better restrict itself from entering that market. Political stability is necessary to have an efficient supply chain right from logistics of raw materials to finished goods to target market.
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This concludes the political factors in the Oppo PESTLE Analysis.
Economic Factors:
Below are the economic factors in the PESTLE Analysis of Oppo:
Mobile industry has grown multiple folds in terms of technology, ease of use etc. There are certain economical factors like inflation rate, GDP growth, unemployment rate, interest rate, labor costs etc.
which are critical for the business of Oppo brand. The country like India if the inflation rate is too high then the product cost increases and thus the products goes out of economical reach for the intended target. GDP growth of China determines how Oppo is going to perform in home market. Labor costs are a major concern. Government intervention in these minimum wages is critical. Also, the interest rates set by government controlled and private banks is also important to take note of since EMI is a main way people enjoy luxurious smartphones.
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Social Factors:
Following are the social factors impacting Oppo PESTLE Analysis:
Smartphones are seen as a luxury these days than necessity. People have extensive disposable income. Oppo is a brand which spends less on marketing but makes good configuration smartphones at cheaper rates. Thus, people tend to buy Oppo. But this is a case in most of the Asia. In America the scenario is completely different. Sentiments towards Chinese products are totally different there. People boycott Chinese products due to the trade war and heated political tension between the two nation. Also, the economic class of target audience has to be studied. Region with high spending capacity people should have access to premium products rather than mid-range products.
Technological Factors:
The technological factors in the PESTLE Analysis of Oppo are mentioned below:
Technology is ever evolving. Access to technology is with every competitor of Oppo. To have a competitive advantage over other smartphone manufacturing companies it should always look for technological advancements. The camera technology which started with front facing camera, is evolving every now and then. Currently the biggest thing in field of telecom is 5G.
Oppo is working with leading telecom companies to collaborate functionalities supporting 5G in their handsets so that when 5G is launched in full fledged mode Oppo should be most appealing brand to audience.
Legal Factors:
Following are the legal factors in the Oppo PESTLE Analysis:
There are various laws that govern the business of Oppo. Labor laws take care of the minimum wage that any labor working in their country should receive. Environmental laws are majorly to monitor the waste generated and the disposal after treatment of waste in proper way. The foreign investment laws which restrict foreign companies from investing in the firm to not more than stipulated percentage share. Taxation policies of a brand Oppo are to be aligned with companies’ policies since they have a serious penalty in case of not adhered to.
Environmental Factors:
In the Oppo PESTLE Analysis, the environmental elements affecting its business are as below:
Oppo is electronic goods manufacturer. The smartphone which is manufactured is non-biodegradable.
It has carbon footprints which effect the environment. Around 176 countries came together to sign Paris Climate Agreement in which they all agreed to fight climate change and its negative impact by reducing its emissions and electronic waste generation. In view of the same, Oppo should now look for sustainable reusable ways to manufacture their products so as to cut down its costs and also be in line with the Paris Climate Agreement which China has also agreed to stand with.
To conclude, the above Oppo PESTLE Analysis highlights the various elements which impact its business performance. This understanding helps to evaluate the criticality of external business factors for any brand.
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