Nikon PESTLE Analysis
Detailed PESTLE analysis of Nikon examining political, economic, social, technological, legal & environmental factors.
Political Factors:
The stable policies of the government are really beneficial to operate in any country for Nikon. In terms of government policies, a new market will be beneficial as it will attract lot of new investors and customers. Even the laws and legislations set up by government such as changes in tariffs affect raw material costs. Even the changing trade rules and regulations and the taxes imposed by different countries affect the business of Nikon. Well established political legislation uplifts the living standard which drives sales of products such as digital cameras. The political stability is important for the brand to increase its target market and eventually its share.
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This concludes the political factors in the Nikon PESTLE Analysis.
Economic Factors:
Below are the economic factors in the PESTLE Analysis of Nikon:
A number of economic factors such as recession, inflation, unemployment, taxes etc. affect the performance and profitability of a company like Nikon.
As people live in an economically stable country, they tend to buy products like cameras and DSLRs. The high purchasing power influences people to buy digital products for them. Hence, economic factors are really important to let people buy and enjoy the images captured through cameras.
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Social Factors:
Following are the social factors impacting Nikon PESTLE Analysis:
The society has an influence on the lifestyle and the purchasing decisions by an individual or a family. The demographics such as age, gender, education and job also have a hand involved in making people buy certain products in their life. For e.g., Young unmarried people usually tend to buy DSLR as a part of their hobby for photography and travelling. Hence all these social behaviors impact the business of Nikon and its products.
Technological Factors:
The technological factors in the PESTLE Analysis of Nikon are mentioned below:
As technology gets evolved, Nikon needs to keep pace with emergent technology in order to be competitive in the industry. This is shown with the elimination of traditional film cameras and the invention of SLDR and DSLR cameras.
Additionally, it invests a lot of money in research and development to have a competitive advantage and to offer unique value proposition to its customers in the market.
Legal Factors:
Following are the legal factors in the Nikon PESTLE Analysis:
In the worldwide market there is no legal rules in order to buy a digital camera. This gives a lot of relief to customers from any special permits who have a desire to purchase digital cameras. However, in certain public and highly secured areas photography is banned. Tourists are prohibited from photography. But for Nikon this is not a threat as most of its customers are professional photographers. This is an opportunity for the company to increase its sales to such professionals and increase its market share and profitability. Other factors are dependent on legal, consumer forum policies & compliance policies of the countries the products are being sold.
Environmental Factors:
In the Nikon PESTLE Analysis, the environmental elements affecting its business are as below:
The company is highly involved in environmental conscious operations and strategies in its business model.
With alarming concern for climate change, Nikon is involved in recyclable materials to reduce the impact of carbon emissions. This company is also striving to market its products in an ecofriendly manner i.e., green marketing which is an emerging trend in modern business environment. Even the internal working environment should be focused on health and safety of its workforce to stand out in the industry with its standards and ethics.
To conclude, the above Nikon 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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