PESTLE Analysis of Adventa

Adventa PESTLE Analysis

by Shamsul
Adventa PESTLE Analysis
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PESTLE Analysis of Adventa

Adventa is an investment holding company in Malaysia. The company is known for its medical equipment and supplies services. The firm is headquartered in Petaling Jaya, Selangor, Malaysia. It was started in 2004, and now it has become a leading brand in Malaysia. The reason behind conducting the PESTLE analysis of Adventa is to cover its macro business factors that affect the medical equipment and supplies industry. PESTLE represents political, economic, social, technological, legal, and environmental factors.

PESTLE is essential to analyze the ongoing business environment and its impact on businesses like Adventa. Managers at Adventa can use this strategic management tool to make the right decisions. The PESTLE factors have a huge impact on the company that it operates in. The business environment in which Adventa operates is highly dynamic. Here’s the complete PESTLE analysis of Adventa:

Political Factors | PESTLE Analysis of Adventa

Political factors in a country can disturb its business environment and economy. Being a healthcare company, the company is highly exposed to political factors such as government policies, political parties, and political stability. The intervention of government and political parties in the company can destroy its economic environment and long-term profitability. Keep scrolling to read some critical political factors that can impact Adventa:

1. Malaysia’s new government is putting so much pressure on addressing government policies for different sectors, including the medical equipment and supplies industry. This is necessary to encourage investors to invest in new sectors and projects without fear. Companies are accepting these new policies to make the business environment safer and more productive. This kind of strategy from the government will support Adventa.

2. The political stability in Malaysia is directly linked to the strength of Adventa. Right now, the company operates in various countries, so it is exposed to the policies and regulations of these countries. Each country has different requirements in the medical and supplies industry. The rise in populism will bring instability to the country. This will impact the market position of Adventa.

3. The local government in Malaysia is powerful. For better local performance, the company should collaborate with the local government. So, Adventa can’t ignore the importance of local government. The local government is responsible for making critical decisions and roles for companies like Adventa. We recommend that the company closely work with the local authorities for smooth and continuous work.

4. The overall governance system of Malaysia is very robust. They are contributing to strengthening the business system in the country. This kind of solid system will not bring any negative change. This type of system is beneficial for companies like Adventa. The company should monitor government policies and decisions to predict trends.

5. Non-government organizations, pressure groups, political activists, and other stakeholders can play a significant role in policymaking. This is imperative for the organization to closely work with these stakeholders in order to achieve its business goals. By working with these stakeholders, Adventa can achieve its community as well as corporate purposes.

6. The Malaysian government has no threat from the military. This brings peace and prosperity to the country and its business environment. This will encourage investors to invest in the medical equipment and supplies industry. The healthcare sector of Malaysia has no imminent threats from the military and terrorists. But, the company has no experience running the business in difficult situations.


Economic Factors | PESTLE Analysis of Adventa

The exchange rate, taxation rate, consumer disposable income, interest rate, the economic condition of Malaysia, and labor market condition are some important economic factors in this PESTLE analysis of Adventa. We have highlighted some important economic factors that can affect Adventa in the future:

1. The presence of infrastructure in Malaysia is facilitating several businesses in the healthcare sector. The Malaysian government has revised its investment policy in the business sector to develop innovative infrastructure that can boost small and large industries. The company can use this infrastructure to drive its sales and growth.

2. Since 2018, the inflation rate in the country has increased. This is because of the liquidity in the market. This economic factor can hurt the business growth of Adventa in the long run.

3. The company can venture into other business segments because of the increasing liberalization trend. This will help the firm generate more revenue from different business areas.

4. The stability in consumer disposable income is a good sign for the company. But, it is creating pressure on Adventa due to the increasing inequality in pay. This will negatively affect the company, consumer sentiment, and customers’ spending behavior.

5. To expand the business globally, the firm should analyze Malaysia’s current economic condition and scenario. The company can target emerging markets to increase its market share if it is good.

6. At this moment, Malaysia has no shortage of skilled and talented workforce. The increasing trend of getting a degree in health and medicine is a good sign of growth. The company can take advantage of this factor by targeting a skilled workforce. They can help the organization target global markets.


Social Factors | PESTLE Analysis of Adventa

Every country has a different mechanism of doing business. In Malaysia, they follow all the rules of the World Trade Organization and the European Union. However, people’s impact is huge on a company’s method. Demographics, health and safety norms, entrepreneurial spirit, traditions, and societal norms are some important social factors. Here, we have mentioned some important social factors that impact the business of Adventa:

1. People support the brand because of its products and services in the healthcare sector. It means the majority of the demographic is on its side. However, Malaysia is a growing company with a young leadership. So, it is a big opportunity for the company to target different demographic segments to earn more revenue.

2. The overall literacy rate in Malaysia is high. They have no scarcity of educated people. The company can leverage it to hire educated staff that can work to grow the company’s revenue.

3.  If you compare the brand’s home market with Malaysia, you will see a huge difference. This is because of cultural and societal standards. The company needs to build a local team of employees in order to keep its supply chain network sound. In this way, Adventa can serve better.

4. These days, Malaysian people are more aware of the products they are using. They have access to information and essential services. Due to this reason, the Malaysian government is investing in public products and services.

5. The country’s consumers are prioritizing new and innovative products. They do not spend money on traditional and old products. The brand can use this to launch customer-oriented products to enhance the customer experience.

6. The rising migration rate is affecting the company. Educated people are getting opportunities from other countries, which results in a higher turnover rate. It is an alarming indicator of the Malaysian economy.


Technological Factors | PESTLE Analysis of Adventa

These days, the use of technology is disrupting every sector, including the healthcare industry. Technology can be used in so many different ways and for various purposes. Innovation in products, innovation in the supply chain, the internet, and the use of technology in customer service are some of the most crucial technological factors. Keep reading to learn some essential technical factors that impact Adventa:

1. Getting a business license in Malaysia is not difficult. They welcome new businesses and companies. However, the country’s culture of technology transfer is not so good. Due to this reason, companies do not collaborate with each other.

2. The competitors of Adventa are using the latest technology to innovate products and supply chains. These companies could be a threat to Adventa. But, the company can find out its strategies and plans using technology.

3. With the help of new technologies, companies like Adventa can lower production costs. As a result, they can invest money into new products. They can also restructure their supply chain network by exploiting the latest technologies. In this way, the company can fulfill the needs of customers and stakeholders.

4. The life cycle of a product has decreased due to technology. These days, companies can make new products quickly, which has reduced the demand for new products. This factor is putting immense pressure on companies like Adventa to stay up-to-date. It is hard for the company to keep its stakeholders happy by promoting a variety of new products.

5. Research and development are essential for constant growth. The company should invest in research and development to manufacture and design new products. Its competitors are investing so many resources into product development.

6. The Malaysian government fully protects intellectual property rights. They have a strong mechanism for protecting data, copyrights, patents, and IPRs.


Legal Factors | PESTLE Analysis of Adventa

Legal factors can ruin the whole business of a company like Adventa. These days, companies don’t have time for legal proceedings and actions. It is necessary for the company to know all the business laws and rules before venturing into any country. Copyrights laws, intellectual property rights, discrimination laws, data protection laws, and more are some essential legal factors that Adventa should consider. Here is the list of important legal factors:

1. Malaysia has a strong mechanism for protecting IPR rights. They provide legal protection of copyrights, patents, and intellectual property.

2. The Malaysian business sector follows the trade rules of WTO and EU. They strictly follow these rules to run the business smoothly.

3. The judicial system in Malaysia is sound, but their courts take so much to close a case. It is challenging for organizations like Adventa to face a lawsuit. To avoid the risk of lawsuits, the company should follow all the fundamental laws and rules.

4. The company is highly concerned about the environment. So, it follows all the environmental laws and guides. This will create so many great opportunities for Adventa in the future.

5. The company should analyze the country’s employment laws as an international organization. This is necessary for smooth and sound working.

6. The health and safety standards in Malaysia are very high. The firm should try to read all the employment laws in order to avoid the risk of inconvenience.


Environmental Factors | PESTLE Analysis of Adventa

Nowadays, sustainability and environmental norms have become very important for people. They are doing everything to make this world a good place to live. The role of environmental groups and activists is huge in this matter. They can affect the company’s business performance if it doesn’t follow environmental laws and regulations. Climate change, carbon footprint, water pollution, sustainability, waste management, and land pollution are some important factors to consider for the company. The following list highlights key environmental factors:

1.  Increasing customer activism is a big concern for the company. Customers are more aware of the environment and sustainability. It is hard for the company to keep them happy by adopting environment-friendly methods for manufacturing products.

2. The drastic change in weather is also a significant problem for the company. They are facing issues in the supply chain due to the change in temperature. The company needs to make its supply chain network more flexible using the latest technologies.

3. Waste management is another sign of worry for Adventa. The Malaysian government is imposing strict standards for waste management.

4. The recycling culture is getting more and more popular daily. By exploiting recycling techniques, the company can decrease its manufacturing costs.

5. The Malaysian government and Adventa fully follow the Paris Climate Agreement. If they don’t follow these rules, they can face strict regulations and scrutiny from environmental agencies. This will create a huge pressure on its working.

6. The increasing manufacturing cost of products is also negatively impacting the company’s economy. This is because of the strict scrutiny from the environmental agencies.


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