A global firm is looking to enter the United States automobile market with its primary product “Lithium Battery.” The trend of autonomous cars in the United States and many other countries are emerging, and autonomous giants have identified the need for more durable batteries. Thus, the management of the company has found that Lithium Battery is the best option for US automobile makers to make vehicles durable, sustainable, and cost-effective. Nevertheless, before entering the market, the strategic analysis tool “Pestle” is to be applied to derive several insights and make a final call at the end.
-
Political
In the United States, the political system is stable, and it is a good sign for this project. The stable political system of the country provides support for automobile manufacturers and auto parts makers. Incremental lobbying regarding the legalization of autonomous ride-sharing cars in the state can open ways for the company to start and expand the project. The influence of the government on business is quite visible, and the company must be aware of it. To sustain this Lithium Battery for the driverless car project, relations with political parties must also be maintained.
-
Economical
The United States is one of the largest economies in the world. Incredible economic growth has supported manufacturing companies in rural sectors. The income level of people is quite high as compared to other countries, and it can help them to buy these driverless cars, triggered by Lithium Battery. The gross domestic product of the country is 19.39 trillion USD, which depicts the growth (Trading Economics, 2019). In this developed economy, the project can be expanded rapidly along with mergers or acquisitions. Autonomous vehicle production is a new addition in the automobile industry, and it is a treat contribution to economic growth as well.
-
Social
The attitude of living in the United States is quite different. In US society, educated people want to live a sustainable life. Buying behavior and consumption level are also changed to contribute to a favorable environment. The shift in social behavior can increase the possibility of the success of autonomous cars made from a lithium battery. Attitude to living may vary in different age groups, and accordingly, targeting and positioning can be enhanced, as far as this new project in the United States is concerned.
-
Technological
People in the United States have become a Tech-savvy, and different industries, especially automobile companies, have responded remarkably. Speed and cost of technology transfer or adaptation is a significant concern of the corporate sector. Introducing the self-driving car in the US market for the general public can be a significant achievement, as technological advancements fascinate people. However, the quality and credibility are to be maintained in this market. For Instance, the main requirement of driverless car companies is battery durability, and it can be achieved by improving technology. Both the government and industries incredibly tune the infrastructure for technological advancements, and it is the best time to take advantage (Watanabe, 2017).
-
Legal
This project is sufficient for the US economy, but the business must come under the regulatory environment created by the state. For Instance, when starting this project in this country, it has to align with state regulations such as equal opportunities, employment acts, and protection acts. Strict regulation regarding counterfeit brands can hit the business hard in the competitive market. Thus, the state’s intellectual property regulations can be adapted to be secure and sustainable. A driverless car project is risky because current automobile giants have already initiated similar projects. Thus, securing the project with legal consideration is the best way for project management (Clark, 2018).
-
Environmental
The business process is triggered by different regulations, set by the US government. Industries, especially automobiles, must integrate with environmental sustainability regulations. If the company wants to produce a long-lasting battery for the driverless car, it also must ensure that it does not create a negative impact on the environment. Laws such as the National Environmental Policy Act (NEPA) can be used to regulate firms. On the other hand, the Environmental Protection Agency (EPA) can also play a role in regulating these firms. The United States is commit6ed to create a better environment for the future generation. Thus, when designing durable batteries for driverless cars, environmental sustainability must not be compromised (Environmental Protection Agency, 2018).
In the end, it is to conclude that production of lithium battery for the driverless car in the United States is a great project, which can be lucrative and sustainable in the long run. Based on different insights, derived from a strategic analysis tool (PESTLE), the project management is in the best position to make effective business decisions. Integrating with industry insights is critical to sustain the business and emerge with expectations of top stakeholders.
References
Clark, G. (2018, December 4). What Is Intellectual Property, and Does China Steal It? https://www.bloomberg.com/news/articles/2018-12-05/what-s-intellectual-property-and-does-china-steal-it-quicktake
Environmental Protection Agency. (2018, November 13). Federal Sustainability Requirements and Guidelines. https://www.epa.gov/greeningepa/federal-sustainability-requirements-and-guidelines
Trading Economics. (2019, January 1). United States GDP. https://tradingeconomics.com/united-states/gdp
Watanabe, C. (2017, September 27). Autonomous Cars Need Tougher Batteries, Lithium-Ion Pioneer Says. https://www.bloomberg.com/news/articles/2017-12-26/autonomous-cars-need-tougher-batteries-lithium-ion-pioneer-says
