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Bayerische Motoren Werke also known as BMW is a company that deals with luxury vehicles and motorcycles which is head quartered in Germany, Munich in a place known as Bavaria (Cai et al, 2019, p 39). The company is ever committed to ensuring that it is providing the best in terms of excellence and market visibility. In Australia, the is a ready market for prosperity of the BMW brand and this can be provided by carrying out the PESTEL and SWOT analysis. Melbourne has the best environment for the luxury car company to prosper and it has promising revenues in terms of sales.

The PESTEL Framework

The PESSTEL framework comprises of the following aspects; political, social, economic, ecological, technological, and legal factors.

Political Factors

Political factors are those which usually relate to the political climate of a country and can be simply the role of the state (Song et al, 2017, p 276-289). The state usually ensures a balance in the political climate of a country in relation to the operations and survival of business enterprises in their country or state. The government can be a customer and therefore create market opportunity for the brand BMW. Favourable taxation policies, foreign trade regulations, changes in trade blocks, and a positive political climate will encourage foreign direct investment and this means that the business environment ill be welcoming hence BMW will adapt and prosper.

Social Factors

These are business factors that usually tend to influence the behaviour of humans in relation to business in terms of lifestyle and spending (Song et al, 2017, p 276-289). Social factors of the PESTEL framework includes lifestyle, consumerism, demographic aspects, income distribution, culture, norms, and fashion. A favourable social factor leads to market creation for the brand and this means that prosperity is promised. These factors enhance the company’s marketing and analytics strategy which ensures sustainability in the market and product existence.

Economic Factors

The economic factors have a direct impact on the performance of the industry and any business in operation. These factors include interest rates, business cycles, exchange rates, unemployment rates, growth rates, and disposable income (Kaza et al, 2017, p 1042-1055).  An economy’s performance is usually measured by the aggregate GDP generated from business operations in that economy. 

Ecological Factors

Ecological usually refers to something to do with the environment and how this environment can be taken care of because it is a habitat to many animals and source of important human requirements. When referring to environment, the following are important; waste management, pollution, and climate change. Introduction of the brand BMW or an assembly plant in Australia may lead to concerns about pollution and waste management. Product sustainability is also a concern as to whether the product will be consistently produced now and in the future. Organizational challenges in respect to the ecosystem will include the issue of direct pollution from any activity related to the BMW assembly, the product stewardship which involves the management of the whole value chain, and the products sustainable development (Pan et al, 2019).

Technological Factors

These can be business advances that help the company achieve efficiency in processes, products, and services. These factors will give the BMW an ability to serve its customers in Melbourne within the shortest time at the lowest cost and convenience. BMW adopts a world class technology which it uses in the production process of vehicles and motorcycles (Garcia et al, 2017, p 1-6).

Lega Factors

These are all those factors which relate to a country’s labour laws, regulations concerning environment, regulations concerning consumer protection, taxation levels and crimes in a country, ownership disputes, and the competition. There will always be cases of litigation and disputes between the customer and the company, customer and employees, and owner and the government (Thakur, 2021, p 125-562).

Swot Analysis

The SWOT analysis usually refers to the following combined elements which can be used to determine business viability in any sector or industry setting. These elements are the strengths, the opportunities, the weaknesses, and the threats.


Any business evaluation needs to point out the unique strengths of any existing or upcoming business. This includes the identification of what the business is good at using the available resources and the things that make the product or service hard to beat. These identifiers must be unique and not known to the competitors of a business (Bull et al, 2016, p 99-111). BMW is a unique brand and this plus other unique identifier like class and models will make it prosper in the Melbourne market.


In as much the business is evaluating its viability in relation to the competition, it should also be able to identify what makes it vulnerable and weak. This means that no business is expected to be the best in any market position because of the differences in product and business strategies in existence (Zare et al, 2015, p 66-80). BMW is a respected and strong brand but prices are usually high and this means competitors can still beat them at sales.


Opportunities in a market setting when an existing or new product is being considered refers to the available market gaps that the business can take advantage of in reference to the available business strengths. BMW should be able to link the identified business opportunity to its market strengths and this can make it perform better than its competitors (Zare et al, 2015, p 66-80).


The threats refer to the external factors that are likely to influence the survival of the business and profitability. When one refers to the external factors, the business usually does not have the control over these factors and they may include polies, regulations, requirements, and taxation. In relation to the PESTEL framework, these factors can be political, social, economic, ecological, technological, and legal and the BMW brand must consider this in its market evaluation (Bull et al, 2016, p 99-111).

The Melbourne market evaluation conducted above proves the visibility of the BMW brand in its market. There is a potential and promising future for the brand as well as ready market for its brand. The evaluation is to give a general and detailed overview of the market situation and the possibility of the product or service to grow and prosper in it. BMW is a big name and can do well in the Melbourne environment.

Bull, J.W., Jobstvogt, N., Böhnke-Henrichs, A., Mascarenhas, A., Sitas, N., Baulcomb, C., Lambini, C.K., Rawlins, M., Baral, H., Zähringer, J. and Carter-Silk, E., 2016. Strengths, Weaknesses, Opportunities and Threats: A SWOT analysis of the ecosystem services framework. Ecosystem services, 17, pp.99-111.
Cai, Z., Wang, A., Zhang, W., Gruffke, M. and Schweppe, H., 2019. 0-days & mitigations: roadways to exploit and secure connected BMW cars. Black Hat USA, 2019, p.39.
GURL, E., 2017. SWOT analysis: A theoretical review.
Pan, W., Chen, L. and Zhan, W., 2019. PESTEL analysis of construction productivity enhancement strategies: A case study of three economies. Journal of Management in Engineering, 35(1), p.05018013.
Reinhardt, R., Domingo, S.G., García, B.A. and Christodoulou, I., 2017, June. Macro environmental analysis of the electric vehicle battery second use market. In 2017 14th International Conference on the European Energy Market (EEM) (pp. 1-6). IEEE.
Song, J., Sun, Y. and Jin, L., 2017. PESTEL analysis of the development of the waste-to-energy incineration industry in China. Renewable and Sustainable Energy Reviews, 80, pp.276-289.
Thakur, V., 2021. Framework for PESTEL dimensions of sustainable healthcare waste management: Learnings from COVID-19 outbreak. Journal of cleaner production, 287, p.125562.
Ulubeyli, S., KAZANCI, O., Kazaz, A. and Arslan, V., 2019. Strategic Factors Affecting Green Building Industry: A Macro-Environmental Analysis Using PESTEL Framework.
Sakarya University Journal of Science, 23(6), pp.1042-1055.
Zare, K., Mehri-Tekmeh, J. and Karimi, S., 2015. A SWOT framework for analysing the electricity supply chain using an integrated AHP methodology combined with fuzzy-TOPSIS. International strategic management review, 3(1-2), pp. 66-80.

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