PESTLE Analysis Of Eniverse Technologies' Drone Delivery System In Essay.

Changing Mechanism of Traditional Delivery with Drones

Discuss about the External Environment Analysis of Drone.

The report will be based on the product named “Drone” that is being manufactured in Dubai by the Eniverse Technologies. The organization will offer its products in the market of Dubai by the year 2020. However, it is also planning for international expansion which will be helpful in increasing the profitability of the company. The organization is planning to start its operations with the help of five drones (Visser and Tolhurst 2017).

The main concept that is related to the operations of Drones in the market is changing the mechanism of traditional delivery and providing the food delivery with the help of drones. The delivery process with the help of drones is predicted to be cheaper as compared to the traditional methods that are used for delivery relayed purposes. The country that has been chosen for the expansion of the operations of the organization is Singapore. The major reason behind the choice of Singapore as the country for expansion is the stable economy and the developed conditions of the country (Ho 2014).

PESTLE framework is major tool that is used by the strategists and the marketers of the organization for analysing the external environment where the organizations operate. The external factors mainly include the macro-environmental conditions of the country or region where the organizations operate. PESTLE is a tool that is mainly used by the managers to assess the various risks that are related to the environment of operations of the organization. This tool helps the company to analyse the various factors that affect the profitability of the organization. This analysis can further help the organization to make strategic decisions that are suitable for the company in the long term (Marttunen, Lienert and Belton 2017). This provides the managers with knowledge and diverse viewpoints about the functioning of the organization. The various factors that are analysed with the help of PESTLE framework are political, economic, social, technological, legal and environmental. This framework provides a bird eye view of entire environment from various angles which is related to keeping check or keeping track of the plans that are made by the company (Dalcher 2016).

Political factors – These are the factors that help in analysing the extent up to which the government can influence the industry or the economy of the country. The taxes that are imposed by the government can further impact the revenues that are generated by the organizations in the industry. The policies of the government are able to change the entire structures of revenue generation of the various organizations. The major political factors include the trade tariffs, fiscal policy which the government levies on the organizations (Paul, Yeates and Cadle 2014).

Economic factors – These are factors which are major determinants of the economic performance of the company that affect the long-term operations of the company. The rise in the inflation rate of the economy can affect the prices of the services or products that are offered by the organization. The supply and the demands, the exchange rates, inflation rates are all major parts of the economic factors.

The Choice of Singapore for Expansion

Social factors – These factors help in scrutinizing the social environment of the country where the organization is planning to start its operations or is operating currently. The main determinants of social factors include, the demographics, the cultural trends and the analysis of the population (Aithal 2016).

Technological factors – The innovations and the advancements of the technology can also affect the operations and profitability of the organization in the country. This also refers to the process of automation of the various organizational processes and the research and development related activities (Moberg 2015).

Legal factors – The legal factors include both the internal and the external sides of the organization. The laws of the country that affect the environment related to business are a part of the legal factors of the PESTLE framework. The legal analysis by the organization also relates to the various legislations that are formulated by the government (Kew and Stredwick 2017).

Environmental factors – The environmental factors related to the external environment are further related to the ways by which the operations of the organization can affect the health of the environment. These factors are also related to the sustainability of the organization in the environment for a long time. The changes that are related to the weather, climate, geographical locations and the entire environment are a significant part of the environmental factors of the framework. (Shabanova et al. 2015).

Political factors of Singapore – Singapore was ruled by a single party in the later part of the 1980s. The country has been dominated by People’s Action Party and the former Prime Minister of the country Lee Kuna in the year 1959. The country was then ruled by the other parties like the Socialist Party which was formed after PAP split in the year 1961. Singapore has a stable political environment which has been able to provide huge number of opportunities to the various foreign organizations to operate in the country (Leblang 2018). The Eniverse Technologies which is planning to launch the Drone delivery system in the country will be able to start its operations in an effective manner. Singapore is a developed country and has immense growth possibilities in various industries or sectors. The distribution systems of the organizations that operate in Singapore will be improved with the usage of Drones (Rothaermel 2015).

Economic factors of Singapore – The score of economic freedom of Singapore is 88.8 and this has made Singapore the second freest economy in the world. The economy of Singapore is highly developed in nature and offers a free market to the various organizations. The Eniverse Technologies will be able to enjoy a corruption free environment of business to operate in an effective and profitable manner (Rudnicki and Vagner 2014). The industrial policy that has been implemented by the government of Singapore is able to promote the diversification and economic development of the country. This will be helpful for Eniverse Technologies to operate its business in the country. Singapore is considered to be one of the world’s highest prosperous nations which further leads to high buying power of the consumers in the country (Rodan 2016).

PESTLE Framework

Technological factors of Singapore – The major factors that are related to the growth of Singapore are based on the use of various modern technologies in the business operations of the organizations operating in the country. The life style of the citizens of the country and the quality of their daily lives are impacted by the high usage of internet in the country for various purposes (Sidhu, Yeoh and Chang 2015). The penetration rate of advance technologies in Singapore is high and this has further led to the fast growth of the nation. Eniverse Technologies will be able to flourish with its operations in the country as the citizens are well aware of the advance technologies and the acceptance rate of new technologies is also quite high (Borner, Brunetti and Weder 2016). The high literacy rate of the citizens is also a major reason behind the high levels of technologies that are used in the country. The organizations that operate in the country are also quite fast in accepting the technologies. Eniverse technologies will be able to increase its revenues by supplying the Drones to different organizations that are already operating in Singapore. The environment that is required for the usage of this technology will be easily created by Eniverse Technologies in Singapore (Chew 2017).

The political, economic and the technological environment of Singapore has been analysed and the results show that the country will be able to provide a positive business environment to Eniverse Technologies. The different factors of the environment and the political condition of the country will be suitable for the operations of Drones. The stable and free market based economy will also be helpful for Eniverse Technologies to set up the various business related operations. The high literacy rate of the country and technological capabilities will be the most important factor which can support the successful usage of Drones for delivery related purposes.

Conclusion

The report can be concluded by stating that the Drones can be used successfully in the market of Singapore after it will be launched in Dubai. This new technology will be accepted by the organizations that operate in Singapore and the people of the country as well. Eniverse Technologies will be able to operate in the country in a successful manner. The Drones will be helpful in decreasing the delivery related costs of the various organizations. The time that is required for delivering the products will also be reduced in the process. The modern and improved technologies have always been accepted by various organizations in Singapore. The government of the country has also been extremely supportive towards the various changes that have occurred in the external environment of the country. The intervention of the government will be important for the successful usage of Drones in Singapore. Eniverse Technologies will be able to obtain the permissions and the compliance of the government regarding the usage of the new technologies for speeding up the various processes of the organizations that are related deliver and distribution of products.

The recommendations that can be given to Eniverse Technologies for the start of their successful operations in Singapore are as follows,

• The company needs to conduct thorough research on the business environment of Singapore before they start the operations in the country.
• Singapore has provided a huge market for various new foreign organizations and this can be helpful for the successful operations of Eniverse Technologies in the country.
• Drones are being planned to launch in the market in the year 2020. The organization therefore has huge amount of time to review the entire environment and plan the operations accordingly.
• The organization can also plan for the various permissions that it requires to use the Drones for delivery related purposes.
• Eniverse Technologies can help in improving the distribution system of the various organizations in the industry.
• The product can be tested in the market of Dubai and further the expansion plans can be modified accordingly.
• The organization can analyse the situation in the market of Singapore by forming a research and development related team which will be working in the country.
• The initial phase of the product launch will be the most important part of the entire planning. The results that will be received by the company in this plan will further affect the decisions that it will take related to its operations in Singapore.
• Eniverse Technologies needs to provide the various organizations with plans and estimates which can be helpful to convince them regarding the benefits related reduction of the costs.
• The cost reduction related facilities that will be enjoyed by the organizations after the introduction of Drone delivery need to be communicated so that they are able to accept these technologies.
• Eniverse Technologies needs to develop the traffic control related activities in Singapore with the assistance of the local authorities.
• The government of Singapore has a cooperative nature towards the new business organizations that enter the market. This will help Eniverse Technologies to set up its business in an effective manner.
• The technological advancement and capabilities in the market of Singapore that have been discussed earlier will also help the company to enter the market of the country easily.
• Eniverse Technologies can further collaborate with the various government entities so that they are able to control the operations of Drones.
• The various government entities with which the company needs to collaborate include, the transport authorities, the traffic control related centres and many others.
• The collaboration with the different government entities will be helpful for the company to expand its operations easily.
• Eniverse Technologies has already collaborated with an organization named Skycart which is based in San Francisco.
• The expansion of Eniverse Technologies in Singapore will help the company to increase its revenues further and collaborate with more high technology based organizations. This will enable the company to further improve its operations and the products.
• The organization can improve the products that they are planning to offer in both the markets. Eniverse Technologies can also gain more investments in its operations after it enters the new market area.
• The expansion of Eniverse Technologies will be helpful for the company to increase its revenues and awareness related to the Drones that will be launched by the company.
• The company can also aim at providing the products in various areas and organizations of Singapore which will further increase its revenues.

References

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