Environmental Analysis PETSEL of the Music Industry
Uploaded by funkyman on Dec 13, 2011
Music is the important art of human being; it has the power to change our mindset, to affect every aspect of our lives and our culture. Yet music is also a large global business towards our economy. One of business segment of music is the Hi-Fi sector, Hi Fi system included music player, amplifiers and speaker. Nowadays, accordingly to enhancing computer technology, Hi-Fi is more and more getting into cyber field such as computer installation Hi-Fi systems, digital music players etc. Hi-Fi sector experienced ups and downs from 1970s to nowadays.
By PETSEL analysis, it is an external analysis tool for analysis of macro-environment. PESTEL is stand for Political factor(s), Economic factor(s), Social factor(s), Technological factor(s), Environmental factor(s) and Legal factor(s).
For PESTEL analysis, political factor(s) are about tax policy, employment laws, environmental regulations, trade restrictions and tariffs, political stability. Government can create trade barrier by legislation. These refer to government policy such as the degree of intervention in the economy. What goods and services does a government want to provide? To what extent does it believe in subsidising firms? What are its priorities in terms of business support? Political decisions can impact on many vital areas for business such as the education of the workforce, the health of the nation and the quality of the infrastructure of the economy. As per political factor(s), it seems no direct political factor(s) are contributed to Hi-Fi industry; the significant of this factor seems not obvious.
For Economic factor(s) are included interest rates, taxation changes, economic growth, inflation and exchange rates. As you will see throughout the "Foundations of Economics" book economic change can have a major impact on a firm's behaviour. For example: Higher interest rates may deter investment because it costs more to borrow. A strong currency may make exporting more difficult because it may raise the price in terms of foreign currency. Inflation may provoke higher wage demands from employees and raise costs. Higher national income growth may boost demand for a firm's products. The market of Hi-Fi is broad and growing, as the figure 154,004 in 2003 but in 2008, it is increasing to be 165164. According to the increasing sales of Apple Ipod in 2001, there is also increasing the demand of Hi-Fi system which is outfitted to Apple Ipod. So the company should aware the macroeconomic situation to try to...