PESTE analysis of Japanese Car industry

PESTE analysis of Japanese Car industry Executive SummaryExternal business environment has been particularly important for the industry. This study aims to apply PESTE model to examine the different impact of external influences on Japanese car industry. The first section aims to model PESTE analysis of Japanese car industry on the external environment including political factor, economic factor, social-cultural factor, technological factor and ecological factor. There are three key factors economic factor that is determinant to the development of Japanese car industry: economic, technological and ecological factor. In combination, these factors form the basis of the opportunities and threat that Japanese car industry has to face in the competitive environment. The second section develops three scenarios planning for Japanese car industry on the basis of three key factors: optimistic scenario, pessimistic scenario, and a middle of the road one.1.0 IntroductionJapanese car industry has been in top position for more than 30 years with the characteristics of high productivity and large innovation achievements.Japanese exports in 2005Accompanying the globalization of the automotive industry, more and more manufacturers make efforts to dominate the global car market and revive the Japanese car industry. Yet a host of external factors influence the direction of Japanese car industry such as government regulations, environment concerns, rapid technology changes etc. So it is quite useful to relate such influences to growing trend towards globalization of car industry.The PESTE analysis this report apply reveals the importance of political, economic, social and cultural, technological and ecological influence on Japanese industry. The approach builds on the identification of three key factors and to what extent such influence will affect the industry and why they are important. It may also be helpful to construct scenario of possible future and develop an understanding of opportunities which can be built upo n and threats which can be...