In the

world of ELECTRONICS
INDUSTRY

The TOPIC WHICH IS GOING TO DISCUSS IS:-

* PEST ANALYSIS OF ELECTRONICS

INDUSTRY*

Political environment:

 The political condition of the Pakistan is not stable, mean when the
government changes the policies are also change the new comer in
politics. He tries to run the country with his own ways which are entirely
different from the previous government.
 From the previous some years we have seen that the Government of the
Pakistan encourages to import and export polices. And also encourage the
foreign investors to invest in Pakistan.
 There are no many difficult formalities to import or export, any dealer can
import in Pakistan and sell by the fulfilling the certain formalizes required
by the law.
 Different countries provides to the different countries there services by
the using of labor of that country. As china is performing this job by the
providing the services to the Pakistan. In this case during the
manufacturing of the product the cost becomes reduce, like the electricity
bills, government taxes, other factory overheads etc, so that’s why
Pakistan prefer to outsourcing mostly from China.

Marketing Management
 The required demand is fulfilled in Pakistan by the importing from China.
Because 17% subsidies are given to the exporters in China.
 If the Government reduces the import duties on the raw materials the
purchasing power can be increased of HVACR (Heating, Ventilation, Air
conditions and Refrigerators).
 Eng. Abdul Rasheed Director General Pakistan National Accreditation
Council (PNAC) said we can save energy with quality management practice
and by evolving a national quality infrastructure based on technical
regulation, standardization and conformity assessment.

Economic Environment

 Pakistan’s economy continued to perform impressively as it is

experiencing longest electronics industry of growth in its history.
 The outcome of the fiscal year 2006-07 indicates that Pakistan’s
economic momentum remained on track.
 Economic growth accelerated to 7 percent in 2006-07 as a result of
robust growth in agriculture, manufacturing and services and has been
notably stable and resilient. Compared with other emerging economies
in Asia, this puts Pakistan as one of the fastest growing economies in
the region.
 Growing per capita income coupled with fiscal revenues approaching a
trillion mark are resulting into increased consumer spending on one
side and increased investment in infrastructure by the government on
the other side.

Marketing Management
  These prime indicators are providing a healthy canvass for both of our
business divisions i.e. Appliances and Power.
 The per capita income of Pakistan has reached up to $763.
 Growing interest of foreign investors in Pakistan as manifested by the
visits of over 200 foreign investors’ delegation in the last 2 years.

Social Environment:

 Most of the population of Pakistan belongs to middle class who are the
potential buyers of ELECTRONICS INDUSTRY’ products. So the scope of
product is high.
 Most of middle class people are price conscious and tend to save money
so they would prefer the products with low electricity consumption.
 In recent times joint family system is vanishing and a product such as
Refrigerator which was used by 5 people is now used by only 2 or 3 so the
demand is increasing day by day.

Buying Pattern:

It is a norm of Pakistan to purchase white products at the time of marriage.

They buy them as dowry item and it has changed the sales pattern. The units of
refrigerators are sold throughout the year, as compared to the previous pattern
of seasonal sales. The availability of different products options has also affected
the buying pattern.

Standard of Living:

Marketing Management
 The overall standard of living is improving day by day and also the availability of
low cost items has contributed a lot in the consumption of white products. This is
an opportunity for ELECTRONICS INDUSTRY to get benefit out of this improving
trend.

Technological Environment:

Cooling system

 The refrigeration components are attached to the cabinet using screws

and clips. The tubing is soldered together, and a protective coating is
sprayed on the joints. The order of this assembly varies between
manufacturers and models. The copper tubing from which the coils
(condensers and evaporators) have separately been cut, bent, and
soldered is then attached to the refrigerator as a unit.
 The seal on the refrigerator door is created by means of magnet laden
gaskets that are attached to the doors with screws. Handles and hinges are
also screwed onto the door before its hinges are screwed onto the
cabinet. Some adjustment is allowed for proper operation of the door.

Testing and adding accessories

 Most manufacturers mix testing with manufacturing from this point on.
The unit is leak tested with nitrogen (a safe gas that makes up about 79
percent of the air); if it passes, it is charged with refrigerant and subjected
to further testing. Next, the accessories (shelves, crispers, ice trays, etc.)
are added and taped down for shipping. The unit is given a final look and
then packaged for shipping

Marketing Management
 Future Environmental Analysis:

Future Trend of Political environment.

By the study of the political environment we come to know that the

formalities which are fulfilled by the both Pak electron industry and the
government are completed. And according to the Eng. Abdul Rasheed Director
General Pakistan National Accreditation Council (PNAC) that the National Quality
Policy is almost completed and would be introduced soon. In future a legal
framework is an urgent need for preventing supply of unsafe products; evolve an
effective certification system, rationalization of quality and conformity system
and raising awareness amongst the masses. He said the rules are being framed so
that in future every product is tested by the government agencies. “it will be a
regular feature and findings of such testing will be made public. In future for the
seek of the environmental protection there must b rules and regulation by the
government especially the role of PSQCA and EPAs, while standards for home
appliances should be strictly enforced and the government, civil society groups
and media should promote responsible consumption attitudes.

Future Look of Economic Environment

The economy is expected to perform well in the next year however it is

exposed to certain challenges like current account deficit, lower exports,
increased competition in the international market and lack of technological
advancement as compared to competing nations. It is still hoped that national
economy will continue to grow and rising prosperity will bring expanding
opportunities for the Engineering Industry and for your Company.
The company will continue to focus on cost effectiveness, quality standards and
best after sales services to our valued customers. And the Pak electron expects to

Marketing Management
go farther, faster and higher than they have ever been in serving the interests of
their customers, shareholders and employees.

Future look of Technological environment

In terms of Freon, several intermediate steps have been taken to minimize CFC
emission as researchers attempt to identify safe coolant alternatives. Refrigerator
designs have been improved to reduce the amount of Freon needed; leak
detection systems have been installed; maintenance has been limited to trained,
authorized personnel; and refrigerant is recovered and recycled whenever
possible. Moreover, long-term replacements for Freon are being explored. Thus
far, the most promising among them is HCFC-22, which, although still a
chlorofluorocarbon, contains an additional hydrogen atom that reduces the
molecule's ozone-depletion capacity by 95 percent. While its cost (three to five
times greater than that of Freon) is problematic, HCFC-22 is presently undergoing
tests to determine its toxicity.

CFC-containing insulation may be replaced by the same kind of vacuum insulation

that is used in thermos bottles. Research indicates that vacuum insulation is more
efficient in terms of both space and energy, so, at present, it appears that
insulation alternatives will become viable well before Freon substitutes.

Now the new refrigerators are introducing by the Hinoon lab. On the solar
energy. Because there is a problem of electricity in Pakistan which can be solved
by the introducing solar energy technology.

Future look of Social environment:

People will buy the refrigerators and other home appliance by the same previous
pattern. And people will mostly prefer to buy the new refrigerators which is

Marketing Management
introducing by High noon lab by the solar energy. And with the change of seasons
people buying pattern will also change. The season of marriages is mostly
between both two Eid’s. So the buying power of people will increase in these
days. And the people prefer to buy those appliances which become match with
their home settings and designing. This is called the trend of fashion. People
decorate their home according the changing of the trend of fashion.

Marketing Management