SWOT

Strengths

Following are the main positive points of PEL.

 PEL has a Strong brand image because it has lower price and higher quality .
 PEL is leader in its power division. Almost all power division is provided by PEL to WAPDA.
 PEL is Employees oriented firm and give priority and try to retain employees.
 Ranked as no 2 in refrigerator in Pakistan
 Strong Dealer network and strong relationship with dealers it give high profit margin to its
dealers and gain their loyalty and strong bonding.
 PEL give free after sale services to its customers, this is why Customer Prefer PEL.

Weaknesses:

 PEL has financial problem especially in off season when they face less cash flows.
 It has lack of product range. They have only few products in division of appliances.
 It is very weak in promoting and advertising its products. They also have very few adds on TV as
compared to other appliances firms.
 PEL has higher manufacturing cost and do not have system variations.

Opportunities:

 PEL should maximize its range of products it should go for other emerging electronics
accessories.PEL can get higher profit margin by enhancing its product line.
 PEL can go to international markets. There are Export opportunities.PEL should try exporting.
 It should

Threats

 PEL is facing a strong competition with Dawlance and Haier.

 Instability of Government and their changing policies are also becoming threats of every
company.
 The increasing trend of using China’s products is giving tough to many companies and PEL is one
of them.
 Price war is competitors is also threat for PEL.
 PEST Analysis

Political:
 Pakistan is the most vulnerable country as Economic survey put it on 11 th number.
 Increase in minimum wage rate by Government.
 Lack of incentives by Govt.to manufactures.
 Cost Of manufacturing in increasing due to high rates of electricity.

Economic Environment:
 Economy of Pakistan is facing financial crises.
 There is strong black economy exists on Pakistan.
 Unemployment rate is increased (specially in this pandemic).
 Manufacture sector faces a negative growth rate nowadays.
 PCI is has a decreasing trend in last few years.

Social Environment
 Refrigerator oven and Air conditioner are often used by upper and middle class.
 People are more conscious about price due to financial crises.
 Split AC demand increased due to class maintenance.

Technological Environment:
 Rapidly changing and advancement of Technology.
 Companies are now going to introduce refrigerator with cool bank.
 Cost of handling inventory is now decreasing in few companies because of electronic
management system.

Legal Factors
 Employment law , Erath law and description law
 Code of conducts, way of operating

Environmental Factors: