Pestel:

Political factors:

 Germany  high political stability

o good democratic constitution  important basic laws: Peace,
democracy and human rights
o The political parties  Duty: participation in the political decision-
making process of the people
 High safety : one of the safest countries  favorable political conditions
o Subdivision of state powers  Executive, Legislative, Judicial
 Objective of the subdivision prevention of the abuse of political
power
 Guarantee  high level of legal certainty
o To maintain safety & stability  high investments of the federal
government in security research
 Germany Member of the EU & NATO
o Has friendly relations with many countries
o Freedom of movement for persons, goods, services & capital  internal
market

Economic factors:

 Germany high economic stability

o Fifth largest economy in the world
o Germany is United States’ largest European trading partner
 Germany  largest market in Europe
o  Germany known as the economic European powerhouse good financial
conditions. 
 Open economy
o Judging be the importance of foreign trade for GDP  Germany most open
economy among the G7 states
o Ranking fourth in the world by GDP
o Foreign trade quota is currently 84.4 per cent  that’s sum of imports and
exports in relation to GDP
 Good employment rate
o Germany is approaching full employment
o In June 2018 number of unemployed people totaled 2.2 million lowest
level since the reunification
o low unemployment rate in Germany 4,2%
 costumers have the money to spend on goods & services
 companies can make more investments and the growth is
increasing

Taxes: 

Germany significantly reduced its corporate tax levels

 far-reaching reform of company taxation is helping companies invest, and
secure new business
  The Federal Government’s raft of reforms to improve the general tax
framework & keeps indirect labor costs down
 VAT= 19%, 2020 it was an exception with 16% 
 Germany corporate taxes: 30%

Social factors:

Demographics:
 Ageing population in Germany  creating opportunities and threats in public
and private sectors
o Increasing demand services for elderly people in the future
 Germany modern, multicultural country

The Millennials:

 they make 52% out of the German population and therefore representing the

biggest customer base.  
 Important values :
o Sustainability  concept of going green
o Career
o Freedom
o Justice
o Democracy
Growing popularity of social media
 Millennials: labelled as the first “digital native” generation  enthusiastically
embracing social media
 Social networks: Instagram, Snapchat, Facebook

Technological factors:

 Patents  to protect new technical inventions, from products to services. 

 to avoid possible law infringements. 
 Registering a patent  exclusive rights for a limited time (20 years). 
 Nobody can use your patent without your say so. 
 possible to grant somebody permission to the patent through a patent
license agreement. 
not possible to renew a patent. 
 increases market value easier to find investors or funding methods. 
Media coverage:
 Media coverage gets your message across to a wider audience
o helps establish your business as credible and its activities as notable. 
 
 independent source
o Helps to protect an imagine or reputation
o bring attention to your company  
o creates awareness

Ecological factors
Germany has a good infrastructure
 o As a densely populated country in central location in Europe and
developed economy  modern transport infrastructure
o Sophisticated energy and communications infrastructure , good
transportation networks
Energy availability:

 Fossil fuels, wind energy, nuclear energy, power solar energy,

biomass (wood and biofuels) hydro

Ecological Consequences  
 Climate change caused by transports like cars, airplanes or ships 
 Exporting the environmental impact of industrial products by selling
them all over the world 
 Air Pollution  by planes  

Disposal of materials:
o Recycling is Germany's contribution to the global battle for the environment,
and the country has been very successful in its fight against growing garbage
heaps.
o Recycling is nearly a national pastime in Germany.
o There's a blue bin for paper, a brown or green bin for biodegradables, a
yellow one for plastic and a black one for the rest.
o Additionally, Germans return their deposit bottles to the supermarket,
and drop glass bottles at public collecting points.

Legal factors:

Advertising:

 Commercial advertising in Germany is comprehensively regulated by law.

 The state provides a framework for fair competition and ensures
that advertising freedom is not used to the detriment of the public interest – for
example by banning advertising claims that mislead, constitute a nuisance or are
harmful to minors.

Competition regulation:

Competition law in Germany

 Ensuring there is fairness in the market is a vital element of regulating it.

 Without fairness in the market companies could operate in any manner they
wish which would be to the detriment of the consumer and to new firms
entering the competition.
 For consumers, competition law ensures that firms operate in a responsible
manner when it comes to advertising and promoting their product.
 Whereas, allowing new firms into the marketplace is good for innovation and
thus ensures that all firms improve and provide the best service that they can.
 On this front, competition law is primarily based around two main areas: anti-
trust and unfair practices.
Antitrust Law in Germany 
 In Germany this area is regulated by the German Restraints
of Competition Act and it works alongside European Union legislation on the
issue such as Article 101 Treaty on the Functioning of the EU.
 Antitrust law is designed with the intention of preventing price-fixing, anti-
competitive practices and the abuse of a dominant position within the
marketplace.