Proton External Environment Analysis Essay

Words: 3692
Pages: 15

Proton’s External Environment Analysis

Introduction 4
PART: 1 Proton Introduction 4
About Proton 4
PART: 2 Proton’s External Environment Analysis 5
2.1 PESTEL Analysis 6
2.1.1 Political and legal factors 7
2.1.2 Economic Factors 7
2.1.3 Social-Cultural Factors 8
2.1.4 Technological Factors 8
2.1.5 Environmental Factors 11
2.2 PROTON’s SWOT Analysis 12
2.3 Industry Analysis 12
Proton five forces model 13
2.3.1 Threat of New Entrants 13
2.3.2 Bargaining Power of Suppliers 13
2.3.3 Bargaining Power of Customers 14
2.3.4 Threats of Substitutes 14
2.3.5 Competitive Rivalry between Existing Players 14
2.4 Some other external factors 15
2.4.1 Change in Customer Demand 15
2.4.2 Globalization 16
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Now, Proton cars are being sold in more than 50 countries worldwide which includes mainly Australia, Singapore, the Far East and U.K. Proton celebrated 20 years in market in 2009, however in early 2012 it was purchased by DRB – HICOM (
PART: 2 Proton’s External Environment Analysis
According Allen, et al (2006) the organization is not operate in compound because there are internal and external environments those effect the organization practices as the external environment and it factors are shown in below figure. Moreover, Barwise and Meehan (2004) claim the analysis of the both environment provide base for strategic decision making for organization.

Source: adopted from

2.1 PESTEL Analysis
According to Dess et al ( 2007) PESTLE analysis is one common and effective model for the external analysis of an organization but Doorley and Garcia (2010) suggested to use Porter five forces and SOWT analysis model for effective results of external analysis of an organization so the writer is going to used PESTEL, SWOT and porter five forces model for external analysis of PROTON. The basic them of PESTEL analysis is shown below as figure.

2.1.1 Political and legal factors
According Miller (1992) the political stability of a country is positive factor for the business and the companies have to obey local and international legal requirements to operate in a specific industry. According to