The paper 'PESTLE Analysis of Malaysia" is a perfect example of a business case study. Malaysia has emerged as one of the most rapidly developing economy among the Southeast Asian countries. It serves as a great tourist destination and people all round the globe travel to Malaysia. Tourists in Malaysia spend handsome in shopping different products and electronics is no exception. Electronic industry is one the major source of revenue for Malaysian government. The country is further equipped with skilled workers and has a stronger export base. Samsung being a leading brand globally in electronics has huge scope in Malaysia, the brand itself induce a sense of loyalty, quality, performance, customer satisfaction, durability and societal status.
There is further a good scope for Samsung to tap the market of Malaysia and further increase its market share. A study of the same has been elaborated and shown below by the help of PESTEL Analysis and further by conducting a SWOT Analysis of the same. 2.0 PESTEL Analysis For making any strategic, investing or business decision, information plays a vital role. A complete market report is the basic requirement for the same.
It is of core importance that a complete study has to be made considering the economic scenario of the country (Gooderham & Nordhaug, 2003). A PESTEL Analysis for the same has been discussed as under. 2.1. Political Environment This describes the extent to which government intervenes in the businesses conducted in the economy, it describes different laws of the country like tax law, labour law, environmental laws etc. It further provides the scope of products which the government wants to induce into the economy and also provides a negative list of products which the government doesn’ t want to induce into its economy.
Electronics has huge scope in Malaysia and even the Malaysian Government is keen to provide subsidy for opening electronics based industry in the country. Further, tax reliefs are provided to encourage more industrial base in the country (Jeffrey, 2003). 2.2. Economic Environment It includes growth rates of the economy, percentage of inflation or deflation, current exchange rates prevailing and current market interest rates which helps a business to make its strategic and expansion decisions accordingly as it largely affects the cost of running a business in the economy (Peng & Luo, 2000).
With an increase in the real income of Malaysia, people have more disposal income and electronics has a huge scope in the country. People having an increase in their purchasing power are more pruned to buy electronics and change their older ones to newer and latest electronic products (Jeffrey, 2003). 2.3. Social-Cultural Environment This factor focuses on the cultural aspects of the country, age distribution, population growth, safety measurements etc. Since, tourism plays an important role in Malaysia’ s growth the country is often flooded by youth who always had an urge to buy electronics for both work and leisure.
Samsung being an international brand will largely be accepted by its targeted customers and prove to be a tough competitor in the electronic industry of the country (Jeffrey, 2003). 2.4. Technological Environment Research and Development plays a major role in any industry. It is very important for a company to make changes in its products as per the technological changes. Electronic industry invests a huge fund to adapt to recent technological changes and design their products accordingly.
Samsung being a global brand has best of the use of technology and its products offering the latest technology is often considered a benchmark in electronic industry. Further, Malaysia aims to become a high income country by 2020 which requires more fund invested towards its R& D (Jeffrey, 2003).