PESTLE Analysis

Motorola Moto 360s PESTLE analysis provides insights into the significant
external factors in the companys macro-environment. These external factors
serve as opportunities or threats that are important in the companys
strategy formulation. Competitors can also exploit the same opportunities
identified in this PESTLE analysis. Thus, the company must take action to use
these opportunities for its competitive advantage. The PESTLE analysis also
helps investors to understand the value of Motorolas position in the industry
of smart wearables.

Political Factors
All governments around the world formulate the laws, rules and regulations
to be followed by organizations. Some governments also specify- which
product can be promoted in the local markets and which cannot be
promoted. Motorola has always followed the local government tax
procedures, policies and employment laws in order to keep away from any
kind of political problems for the organization.
The following political factors are significant in Motorolas remote/macroenvironment:
1.
2.
3.

Globalization (opportunity)
Stable political climate in most of the major markets (opportunity)
State-sponsored online companies (threat)

Economic Factors
Motorolas business is subject to economic changes, like changes in interest
rates and trade rates. Some times the price of products may also get
affected by such factors. In the PESTLE analysis model, economic external
factors can change the market opportunities available to businesses. In this
case, the following economic external factors are the most significant:
1.
Economic stability of most major markets (opportunity)
2.
Rapid growth of developing countries (opportunity)
The economic stability of major markets and rapid growth of developing
countries create new momentum that Motorola can exploit by coming up

with differentiated productes like Moto 360 which focuses on the niche
market. The company can use these opportunities for global expansion.

Social/Sociocultural Factors
Socio-cultural external factors like local customer preferences, life styles and
all demographic aspects affect the way customers respond to Motorolas
products. Motorola grabbed the market shares by understanding social
changes time to time. Thus, consumer behavior must be considered while
promoting a product in local markets. The increasing diversity of users is an
opportunity for Motorola to improve its services to match individual
preferences.

Technological Factors
New technologies and innovations in the market brought revolutionary
changes to products and services. These technological changes resulted in
easy communication, cost reduction, and better services. Motorola modified
its designs, features and specifications for catching up the standard
technologies using today.The technological nature of Motorolas business
means that technological external factors have a major impact on the firm.
The PESTLE analysis model considers technological changes as potential
makers or breakers of business. The following are the significant
technological external factors:
1.
Growing Internet access in developing countries (opportunity)
2.
Rapid adoption of mobile devices in the global market (opportunity)
Motorola faces significant opportunities based on these technological
external factors. The company can expect higher advertising revenues as
developing markets become more connected online. Also, it can improve the
mobile-friendliness of its online products to exploit the mobile trend.

Legal Factors
Motorola must operate within legal limits. Consumer safety, health and
employment law are some of the legal aspects to be considered before
promoting any smart wearable product like Moto 360. In the PESTLE analysis
model, legal requirements influence what firms can do. The following are the
significant legal external factors:

1.
More regulations on online privacy (opportunity)
2.
More regulations on intellectual property rights (opportunity)
Motorola can exploit the opportunities based on these legal external factors.
For example, the company can improve its privacy measures to protect
individual users. Also, Motorola can develop innovative measures to
discourage people from violating intellectual property rights.

Ecological/Environmental Factors
In the PESTLE analysis model, ecological/environmental trends influence
business strategic formulation. The following are the significant ecological
external factors:
1.
Global spread of environmentalism (opportunity)
2.
Growing interest in sustainable business (opportunity)
The main idea is to improve the firms ecological/environmental impact. In
this way, Motorola can expect improved customer responses based on
positive perceptions of the firms ecological/environmental contributions.