Pest Analysis Of Honda Civic-- Part1/6

It is essential for any organization to conduct the pest analysis of its product. So first of all we talk about the political, economical, social, technological factors which are exactly effect the company’s product.

ECONOMICAL FACTORS

 INCOME:

In Pakistan, the majority of people belong to lower class so they use local transport for traveling according to their suitability, while on the other hand as the income level of people increase they want to get rid of this poor transportation system. This factor is no doubt a great opportunity for Honda civic to attract the people to purchase their own Civic car.

INCOME DISTRIBUTION:

In Pakistan, due to discriminatory distribution of income there is high class income group who spends a lot of money on their luxuries life so they prefer to buy a luxurious Honda Civic.

PAYMENT METHODS:

We all know that because of advancement in technology the use of plastic money is more popular in these days but in Pakistan the limit of credit card is 500 thousand except premium card (Limit is up to 1.5 million) which is just 0.09% of whole credit card holders. This situation is different in other countries like Japan and America where people can buy a Honda civic car easily.

CONSUMPTION BEHAVIOUR:

To spend whole money on daily needs is the psyche of Pakistani people. On weeding ceremony, promotion, they spend all money rather to save for future needs so as people get extra money they want to make their life more comfortable and luxurious like they purchased Honda civic for their own comfort.

COST:

The maintenance cost of Honda civic is comparatively higher than other countries. In Pakistan there is unavailability of all civic parts and company’s workshops. Moreover, import duty has been increase on 1200cc cars that also affect the sale of Honda Civic.

ECONOMIC POLICIES:

Taxes rates and interest rates are also affecting the sale of Honda civic in Pakistan, and there is no consistency and stability in Govt. policies.

ECONOMIC INDICATORS:

Due to inflation the purchasing power of people has been decreasing rapidly in Pakistan so they prefer 800cc car rather than 1200cc car like civic.