Maserati PESTLE Analysis
Detailed PESTLE analysis of Maserati examining political, economic, social, technological, legal & environmental factors.
Political Factors:
Governments across the world are involved in enforcing strict safety regulations for automobile manufacturers which involves companies like Maserati. A lot of mandates in motor vehicles are put up by governments like safety seatbelts and even airbags in the case of emergency situation. Even in some countries more focus is on E-vehicles now because of the high pollutant emission levels by automobiles. In India specifically in the union budget 2021 voluntary vehicle scrapping policy, personal vehicles would undergo a fitness test after 20 years. This has an impact on the business strategy of Maserati and offers it the business opportunity in different countries. Due to Covid-19 pandemic, the sales of automobiles decreased but it has picked up now as situation has improved. This is a positive sign for the company and helps to generate more revenue.
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This concludes the political factors in the Maserati PESTLE Analysis.
Economic Factors:
Below are the economic factors in the PESTLE Analysis of Maserati:
With the growing disposable income, many people have started spending on buying their own motor vehicles. This gives an opportunity to luxury carmaker Maserati.
Some of the economic factors which influence the brand are interest rates, inflation, tax rate and foreign exchange rate operating in any country. Even the employment rate of consumers impacts their buying decisions overall. On a broad level, the macro level factors such as recession and fuel rates also impact the sale in different geographies. The car company usually is into manufacturing luxury vehicles which makes its target market limited to high end consumers. This is a threat to this company but at the same time an opportunity as well to increase its target market with the appropriate segmentation targeting and positioning.
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Social Factors:
Following are the social factors impacting Maserati PESTLE Analysis:
Lifestyle choices and society has a major role to play in the buying decisions of individuals and families. The social status and surrounding culture influence the decisions while purchasing any luxury or expensive items such as an automobile. As the popularity of driving is growing, people wish to buy their own vehicles. Even the demographic factors such as age, gender, education and location affect the selling of vehicles. As people become more educated and their social status rises, they tend to buy more and it drives sales. There is an increasing demand for electric vehicle category and Maserati is doing quite well in this segment. With the increasing awareness and right marketing and promotional strategies, it can increase its sales and therefore profitability.
Technological Factors:
The technological factors in the PESTLE Analysis of Maserati are mentioned below:
Maserati is highly focused on innovation and tech enabled car engine designs in the coming future. It has its own innovation lab where high tech designing and modeling is done. This company has plans to roll out electrified cars in this year as well. Apart from this, technological factors such as AI and Machine learning are finding its application in automotive industry in the form of robotic automation. It includes managing fleet, self-driving cars etc. which are important technological advancements. All these factors in the industry make the car company stand out and gives it a competitive edge over its competitors. It is imperative to move ahead with coming technologies to attract customers and gain market share.
It increases the brand value as well as profitability.
Legal Factors:
Following are the legal factors in the Maserati PESTLE Analysis:
Another important factor to be considered is the legal factor as this has a huge role to play in the market. It affects the performance and profitability of the vehicle brand. As the pollution laws have grown stricter as well the scraping policies are coming up in different countries. It is important for a vehicle manufacturing brand like Maserati to take care of different laws related to product quality and safety in lieu of international market standards. There are a lot of laws related to environment, safety and tax that the vehicle manufacturing companies have to deal with while operating in the different countries and markets. The laws related to workplace health and safety are also really important. With the emerging technologies in the automotive industry, lot of news laws are also emerging such as cybersecurity and data privacy laws. Even laws related to trademark and copyright plays a significant role to avoid any court disputes. As Maserati grows its business in different segments, it is important to take care of legal requirements and associated factors. This improves the customer loyalty and trust and thereby sales as the brand fulfills mandatory legal norms and standards in the industry.
Environmental Factors:
In the Maserati PESTLE Analysis, the environmental elements affecting its business are as below:
As laws related to low carbon emissions and environment are growing stiffer across countries, it becomes important for Maserati to plan its business operations accordingly. There is a provision for government subsidies and incentives for those vehicles which are low on carbon emissions and fuel consumption. It has plans to design and launch car models which are 100% electrified in this year. Even the vehicle End-of -life Management is critical for brands as E-waste has severe environmental impact.
This company is very much environmentally friendly in its operations as well as its vehicles. These factors play wide role as consumers today are looking for tax rebates as well as less polluting vehicles. Hence, Maserati has the opportunity to grow its market share substantially as compared to its competitors in this domain.
To conclude, the above Maserati 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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