Technological development has provided the commercial sector with a variety of opportunities. China is one of the most versatile producers of innovative products. Some of these products are the Illuminated sign blackboard LED (Shenzhen Suocai Electronic Technology Co. 2015). Gupta (2013) stresses that environmental analysis is central to strategic planning as it enables companies to take into account all opportunities and possible hazards. To implement the environmental analysis, it is possible to employ PESTEL model. This framework allows to assess major factors that can affect the development of the product, service as well as the entire company (Barrows & Neely 2012). The model involves the analysis of political, economic, socio-cultural, technological, environmental and legal aspects.
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As for the political factors affecting the product in question, it is possible to note that LED blackboards have many opportunities. The contemporary society is concerned with efficiency and environmental protection. Hence, many political forces try to focus on these issues as well. The new products are associated with small energy consumption, which is closely related to eco-friendly practices. More so, developed countries are characterized by rather strict law enforcement concerning the commercial use of lighting (Parsons 2015). Therefore, the new product can be successfully marketed in developed countries.
As far as economic factors are concerned, it is necessary to take into account such aspects as population income, real spending as well as the development of the commercial market. When it comes to the Chinese market, the population’s income have been steadily growing, and people have started spending more on entertainment. Irrespective of certain financial constraints, people living in developed countries spend the significant amount of money on entertainment as well as buying consumer goods. Companies providing services associated with entertainment have willingly utilized the product that have attracted customers (Nair & Dhoble 2015).
When it comes to socio-cultural factors, it is possible to identify such trends as the focus on environmental issues, efficiency, and innovation. As has been mentioned above, the contemporary society is concerned with environmental protection and energy-efficient technologies. Clearly, customers prefer products that are energy-efficient and eco-friendly at the same time (Zehner 2011). Furthermore, modern consumers are accustomed to novelties and seek for constant innovation. Admittedly, LED signs in bars, restaurants, shops will attract customers due to their novelty and efficiency.
Technological concerns may have a significant impact on the development of the industry as well as the future of the product. Stafford (2010) stresses that the LED technology will continue developing, and new standards of efficiency will come into existence. The development of the components used in manufacturing LED technologies is likely to lead to the reduction of costs, which is also beneficial for the future of the product (Stafford 2010). The overall popularity of the technology creates a favorable environment for the product in question.
As far as environmental concerns, the product has an advantage, but it can also face certain opposition. As has been mentioned above, LED technology is characterized by high efficiency and environmental responsibility (Zehner 2011). This is an advantage that can bring more customers. Nonetheless, the product may face the sharp criticism due to waste disposal concerns as LED technology has not resolved this issue yet (Parsons 2015). However, it is also important to note that the target customers are businesses (not individuals or households), which puts less pressure on the product, as people tend to oppose the excessive use of various gadgets by individuals.
Finally, legal factors may also have a significant impact on the future of the product. In this respect, it is possible to focus on licensing, which is still associated with some issues. The product should comply with numerous standards. Importantly, ISO standards are employed in many countries, and it is easy to market products that comply with these requirements.
The brief PESTEL analysis makes it clear that the product has nice prospects and can be popular worldwide. However, major markets can be the USA, Australia, EU countries, China, and India. The drive to energy-efficiency and environmental protection makes the product attractive and even the only available option. The product is highly innovative, which is another advantage. The marketing strategy should focus on these aspects. At the same time, the development of technology poses some threats as new similar products can enter the market. Therefore, it is essential for the product to be under constant development. The major aspects to concentrate on are the price and manufacture costs, design, and efficiency. It is crucial to make sure that the product (including new attributes developed) are consistent with the ISO standards. It can also be necessary to come up with ideas on the use of materials that can be reused.
On balance, it is possible to note that the Illuminated sign blackboard LED has a favorable environment and can be one of the top products in various markets. Energy-efficiency and innovative technology make the product attractive to many customers. Many businesses may benefit from the use of this product. Clearly, the marketing strategy should be based on the principles of innovation, quality, and eco-friendliness.
Barrows, E & Neely, A 2012, Managing performance in turbulent times: Analytics and insight, John Wiley & Sons, Hoboken, NJ.
Gupta, A 2013, ‘Environmental and pest analysis: an approach to external business environment’, Merit research Journal of ART, Social Science and Humanities, vol. 1, no. 2, pp. 13-17.
Nair, GB, & Dhoble, SJ 2015, ‘A perspective perception on the applications of light-emitting diodes’, Luminescence, Web.
Parsons, JJ 2015, New perspectives on computer concepts 2016, comprehensive, Cengage Learning, Boston, MA.
Shenzhen Suocai Electronic Technology Co., Ltd 2015, Web.
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Stafford, N 2010, ‘LEDs to light up the world’, Chemistry World, pp. 42-45, Web.
Zehner, O 2011, ‘Light-emitting diodes’, in P Robbins, D Mulvaney & JG Golson (eds), Green technology, Sage, London, pp. 288-291.