Pestle of Lenovo

Pestle of Lenovo

Political factors include government regulations and legal issues determining the conditions under which companies have to operate. In this field, the computer industry has to face certain restraints. Problems can arise in countries where political stability is not guaranteed, no matter whether companies operate production facilities or if they do business with the country through exports. Many countries still have restrictive policies which are maintained to protect domestic manufacturers and production.

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Such policies often hinder foreign companies from entering into this market. The only possibility to do business in those countries is to establish partnerships with local companies, where they are additionally forced to accept minority shares and to provide money and technological know-how. However, the computer industry sees great potential in those countries which lose their restrictions. This is especially true for China which has opened for many industries since its accession to WTO in2001.

In the course of globalization trade barriers decline and new markets emerge, allowing free trade to expand. 1. 3. 2 Economic The computer industry expects a growth of approximately 10 percent over the next years. This growth is influenced by the economic situation in a specific country, having an impact on the purchasing power of potential customers. Additionally, changing inflation rates and currency fluctuation also determine the profitability of a company. 1. 3. 3 Social

The national demand for computers is dependent on the educational level prevailing in a specific country. The higher the educational standard, the higher is the demand. Furthermore, computers get more and more involved in daily life. Today, children already get familiar with the use of computers at a very young age, representing a generation that will hardly live or work without a computer in future. Additionally, the brand image of a computer and lifestyle trends get more and more decisive for the purchasing decisions.

The computer industry adapts to this trend, e. g. by offering a wide range of notebooks and by trying to create a strong brand name. 3 1. 3. 4 Technological There is hardly any industry that is characterized by a faster technological development than computer industry. Increased research and development have caused permanent innovation processes which lead to short product life cycles resulting in a faster depreciation of the products.


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