The PEST Analysis for PC market in UK
Changes in interest rates, exchange rates, technology and the law are all external factors, which can affect a firm. These factors can affect the firms' costs or the market as a whole. Changes that take place in the external environment can be evaluated and analysed by using a PEST analysis.
To analyse the firms' external environment, the following headings are used;
Political, Economical, Social, and Technological.
A PEST analysis has been used to analyse our firm in the PC market,
2.2.1 Political
The change in government policy will have a big impact on the PC market; for example, recent proposals to extend membership of the EU will lead easier access into the market for UK firms.
This part of the PEST analysis deals with the political factors affecting the external environment of the PC market.
Government policies would have major impact on the PC market these are as follows;
The legislation that has recently been changed is the law of minimum wage. This may have a great impact on our firm in the PC market. In the last 2 years, the minimum wage has gone up from £3.50 to £4.10 and there have been rumours that it should go up in the next year or so. Trade unions say it should be raised by another 10p but it needs to be higher than what it is now. This would be good overall but it would also be good for our firm, as consumers' income has increased, therefore they have more money to spend and may feel that now they can afford to buy a computer.
The government has tried to improve the skill and knowledge of IT in the UK. Due to this effect, the population in the UK may feel more skilled in using PCs, and therefore this impact may increases the use of PCs at home, lea ...