Pestel And Pestel Analysis Of Nippon Paint Singapore
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Nippon Paint Singapore Co Pte Ltd was founded in 1955 by Mr Goh Cheng Liang who set up his first paint shop in Singapore & became the main local distributor of Nippon Paint. Nippon Paint Singapore has a competitive edge over its core competitors in terms of quality, customer trust and service, and diversity in product ranges. It has proved its success as Mr Goh Cheng Liang, the founder of Nippon Paint was announced as one of Singapore’s richest man with a US$8.2 billion (S$10.8 billion) fortune, according to a Bloomberg report on January 19 2015.
This report will focus in making a PESTEL & Porter’s 5 Forces of Nippon Paint & finally provide some recommendations.
2.0 PESTEL Analysis 2.1 Political Factor
When operating in a global environment, Political factors are an important aspect of the PESTLE analysis that a company has to put into consideration when conducting an analysis. The significant political factors affecting Nippon Paint Singapore include the stability of a government & the likely changes that could happen. For example, its business environment may be affected by tax policies that the government collects at the end of each year. As Nippon Paint Singapore is one of the top leading paint brands not only in the world, but also in Singapore, high tax rates may occur.…show more content… The core elements of economic factors that companies have to put into consideration include the economic growth, inflation rate and interest rates. Each factor determines the extent of business growth and expansion. For instance, said Charlie Ong, the general manager of the Nippon Paint mentioned that the sales of paint tend to increase more during holidays, and on occasions like Hari Raya Puasa and the Lunar New Year. (Charlie Ong,