Question

I need to write PESTLE analysis for Canadian Tire entering into the Philippines for expanding their business. Canadian tire is entering through Short term strategy as Direct exporting and then long term strategy by Joint Venture. Please provide the PESTLE analysis for Canadian Tire for entering into Philippines.

Answer 1

PESTLE analysis of Canadian tire is as follows:

• Political: Political factors can be significantly impactful for Canadian tire while entering the Philippines. It has a presidential political system where the president of the state is the chief of all public sector actions. However, the country does not have a stable political situation.

• Economic: Canadian tire corporations should analyze the economic factors of the Philippines people before entering the market. The country ahs 38th largest economy in the world, with a GDP of $330.91 billion. It is an ideal location for manufacturing, shipbuilding, agricultural, and mining companies. Thus, the company can get a secure economic environment.

• Social: An analysis of social factors helps to know behaviors, cultures, ethics, preferences, and orientations of the local people. The Canadian tire can get a welcoming environment in the county as their target audience are most hospitable, friendly, and very responsive to new companies.

• Technological: Technological factor scan clarifies Canadian tire the availability of technology in the country to bring innovativeness to sin product and service detail. The country has witnessed rapid progress in technology as its IT spending will be over $8.1 billion by 2023, conveying a positive message to Canadian Tire.

• Legal factors: Legal factors help identify existing business legislation, taxation, and foreign exchange policy in the country. Canadian Tire must obey all the legislations and critical factors of the Labor Code of the Philippines, which enacted in 1974 to conduct business in the country.

• Environmental: Canadian tire may not get a positive response from environmental factors because of the strong availability of lurking volcanos, floods, and typhoons. However, stunning beaches, hotels, and crowded megacities still can be great destinations for the company.