Existing

Market
of smart
wearables
 PESTEL ANALYSIS
• A PESTEL analysis is a tool to analyze
external macro-environmental factors of
change in a business environment.

• These are aspects a business should

assess: competitors, markets, direction of
operations and conditions
Political
• The recent political instability and the geo political conditions may
impact the market growth of Smart glasses .
• The trade barriers that the host country has may protect the
company; however, trade barriers that countries with potential trade
partners would harm company by preventing potential exports.
• A high level of taxation would demotivate from maximizing their
profits.
• A low minimum wage would mean higher profits and, thus, higher
chances of survival .
Economic
• The economic system that is currently operational in the sector in question- whether it is
a monopoly, an oligopoly, or something similar to a perfect competition economic
system.
• The rate of GDP growth in the country will affect how fast Smart Glass is expected to
grow in the near future.
• The interest rates in the country would affect how much individuals are willing to borrow
and invest. Higher rates would result in greater investments that would mean more
growth for Smart Glass
• However efficiently the financial markets operate also impact how well Smart Glass can
raise capital at a fair price, keeping in mind the demand and supply.
• The exchange rate of the country Smart Glass operates in would impact the profitability
of Smart Glass, particularly if the company engages in international trade. The stability of
the currency is also important- an unstable currency discourages international investors.
Social
• The class distribution among the population is of paramount
importance: Smart Glass would be unable to promote a premium
product to the general public if the majority of the population was a
lower class; rather, they would have to rely on very niche marketing.
• To some extent, the differences in educational background between
the marketers and the target market may make it difficult to relate to
and draw in the target market effectively.
Technology
• If Smart Glass encounters a new technology that is gaining popularity in the
industry in question, it is important to monitor the level of popularity and
how quickly it is growing and disrupting its competitors’ revenues. How easy,
will the technology be diffused to other firms in the industry, leading to
other firms copying the technological processes/ features of Smart Glass.
• The impact of the technology on the costs that most companies in the
industry are subject to have the potential to increase or reduce the resulting
profits greatly.
• If these profits are great in number, they may be reinvested into the
research and development department, where future technological
innovations would further raise the level of profits, and so on, ensuring
sustainable profits over a long period of time.
Environment
• Climate change would also render some products useless
• If it produces extremely large amounts of waste may be required by
law to manage their environmental habits will lead to pollution fines
and quotas, which may place a financial strain on Smart Glass
• While relying, in any percentage, on renewable energy may be
expensive, it often receives support not only from the government
but also from its customer base, who may be willing to pay a premium
price for the products that Smart Glass may produce.
Legal
• Intellectual property laws and other data protection laws are, in
place to protect the ideas and patents of companies who are only
profiting because of that information. If there is a likelihood that the
data is stolen, then Smart Glass will lose its competitive edge and
have a high chance of failure.