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Bugatti PESTLE Analysis

The document provides a PESTLE analysis of Bugatti, a luxury car manufacturer. It examines the political, economic, social, technological, legal, and environmental factors impacting Bugatti's business. Key factors mentioned include government policies and regulations in different markets; economic conditions like inflation and income levels affecting sales; social trends around status symbols and luxury goods; Bugatti's focus on technological innovation; legal requirements around safety and environmental standards; and environmental concerns pushing new electric vehicle development. The analysis identifies both challenges and opportunities for Bugatti presented by the external business environment.

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Saurabhkumar Singh
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211 views

Bugatti PESTLE Analysis

The document provides a PESTLE analysis of Bugatti, a luxury car manufacturer. It examines the political, economic, social, technological, legal, and environmental factors impacting Bugatti's business. Key factors mentioned include government policies and regulations in different markets; economic conditions like inflation and income levels affecting sales; social trends around status symbols and luxury goods; Bugatti's focus on technological innovation; legal requirements around safety and environmental standards; and environmental concerns pushing new electric vehicle development. The analysis identifies both challenges and opportunities for Bugatti presented by the external business environment.

Uploaded by

Saurabhkumar Singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Bugatti PESTLE Analysis

PESTLE Analysis of Bugatti analyses the brand on its business tactics. Bugatti
PESTLE Analysis examines the various external factors like political, economic,
social, technological (PEST) which impacts its business along with legal &
environmental factors. The PESTLE Analysis highlights the different extrinsic
scenarios which impact the business of the brand.

PESTLE analysis is a framework which is imperative for companies such as Bugatti,


as it helps to understand market dynamics & improve its business continuously.
PESTLE analysis is also referred to as PESTEL analysis.

Let us start the Bugatti PESTLE Analysis:


Political Factors:
The political factors in the Bugatti PESTLE Analysis can be explained as follows:

Bugatti being a global car manufacturer brand has business worldwide. The different
policies, rules and guidelines of different countries is applicable to this auto
company. The political stable environment in a country can boost the economy and
thereby eventually sales for luxury items like a high-end car by Bugatti. The imposed
tariffs and taxation system on the buyers and manufacturers of cars is a big factor
which impacts the sales turnover and profit for this company. Many governments
have announced a rebate on buying new cars upon scrapping an old one. The
subsidies and incentives on the alternative E-vehicles segment is a big threat and
competition for the car brand. In the coming times, the tax rate cut on petrol and
diesel to boost car sales is another step to drive the purchasing behavior. It has an
impact on the business strategy of this company and can bring an opportunity in
emerging economies. Working in alignment with the Government set guidelines can
reduce red tape to operate profitably with good market share.
Image: pixabay

Economic Factors:
Below are the economic factors in the PESTLE Analysis of Bugatti:

There are many economic factors which can change the micro and macro
environment tremendously.

Factors such as inflation, recession, income level, import- export duties, currency
exchange rate etc. influence the purchasing power and the sales for luxury high end
car maker Bugatti. The recession and rising oil prices have an impact on the sales
for cars. Bugatti is majorly catering to high end wealthy consumers worldwide. It has
an opportunity here to segment its cars in terms of price and quality according to
consumer needs. Like its competitors it can cater to emerging economies. This has a
huge growth potential in the long run.

Social Factors:
Following are the social factors impacting Bugatti PESTLE Analysis:
The lifestyle choices are majorly affected by society and the people around. The
demographic components like the age factor, gender, education and income level
etc. impacts the consumer decision making process for purchasing. With the rising
disposable income, people want to lead a comfortable and luxurious life. The Bugatti
cars are highly expensive and bought exclusively by wealthy businessmen and high-
end professionals globally. For e.g. In India itself, there are a very few individuals
who own this branded car exclusively. It makes them feel apart and shows their high
social status and class. This car brand has focused differentiation business models
catering exclusively to a small segment. It can diversify its cars portfolio to compete
with brands having different business models. It can leverage this opportunity to get
more customers and market share in a big market like India.

Technological Factors:
The technological factors in the PESTLE Analysis of Bugatti are mentioned below:

Technology and Bugatti go hand in hand. This is imperative for this car manufacturer
to bring new technological innovations in its cars on a regular basis to maintain its
brand equity. Its high-speed supercars with ultimate horsepower engines,
aerodynamics, tires, the unmatched sophisticated design etc. make this car maker
stand tall among its competitors. It has a big competitive advantage with its research
power and development capabilities. It was the first manufacturer of a seven-speed
variant of Dual clutch gearbox which is considered as the fastest in the world. In the
automotive industry, this company is the only one to use 3D printing for production
and its processes. Technical innovation is one the unique selling proposition for this
car brand worldwide. This gives it a monopoly and hence higher profit margins.

This also offers it a loyal customer base with high performance and sales.

Legal Factors:
Following are the legal factors in the Bugatti PESTLE Analysis:

It is critical for a car brand like Bugatti to prepare for various laws considering quality
of the car and safety of passengers as per global standards. Laws which affect the
company deal with environment, safety and tax manufacturers have to follow,
depending upon the countries and markets of business operations. The customer
safety rules and regulations mandated by law for safe driving should be adhered to.
Many laws like cybersecurity, data privacy etc also have to be looked at by a car
brand like Bugatti. The use of AI and machine learning in capturing the data for
fraudulent and illegal practice can hamper the brand image. Even laws related to
trademark and copyright play a significant role to avoid any court disputes. Following
the policies & guidelines laid down by legal institutions will help the brand grow even
further.

Environmental Factors:
In the Bugatti PESTLE Analysis, the environmental elements affecting its business
are as below:

As environmental factors related to low carbon & greenhouse emissions are


increasing globally, it becomes necessary for the company to plan its business
operations accordingly. Bugatti has a range of high premium super speed cars and it
is planning to launch an E-car for less than 1 M euros.

This company is very much environmentally friendly in its operations as well as its
vehicles. These factors play a wide role as consumers today are looking for tax
rebates as well as less polluting vehicles. Hence, the company has the opportunity to
grow its market share substantially as compared to its competitors in this domain.

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