PESTEL to the communist economy of China.

PESTEL on Dell Inc.PoliticalDell has to deal with many different political systems all around the world, from the free market economy of the United States, to the communist economy of China.

EconomicEconomic recession has had a great effect on businesses operating internationally. Governments may reduce interest rates, which would be an advantage for Dell, as this would mean exchange rates are in their favour. However, inflation rates can affect them negatively, as in economies with high inflation rates would have a lower demand for computers or laptops. Barriers to entry must also be considered, as they would affect profits.

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SociologicalSocial factors can affect a business in both ways – directly and indirectly. Dell might have to face a lot of competition in certain markets. Since the purchasing power of consumers in certain developing countries are increasing, it can be both, an opportunity as well as a threat for Dell, as there are competitors.TechnologicalDell being a technology company, is highly affected by technological innovations. There are new innovations to technology frequently, which makes the previous ones obsolete, therefore, Dell would have to be up to date with the latest innovations in technology to compete.EnvironmentalDell would have to keep the environment in mind, as nowadays, not only governments support environmentally friendly organizations, but even consumers prefer such organizations.

LegalFor international brands, legal issues are an important factor. A company like Dell would be subject to different types of legal regulations, from different countries.