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PESTEL analysis is consisting of political, economical, social, technology, environmental and legal. By doing a research through this analysis in India, Lincoln Electric could find out whether is going to generate opportunity or threats. India is one of the fastest growing countries in their economical and has a very attractive market in Asia. India’s welding market was also the third – largest in Asia by 2006, whereby the annual sales was around $500 million (Jordon Siegel, 2008).
When we study the political view of India, the corruption activities is actually very high in India between the government and people. A major area of concern in India is corruption. Corruption increases the cost of business operations and often affects foreign direct investment (Rahman, 2018). Additionally has an all-around created tax structure with a three-level elected structure including the Union Government, the State Governments and The Urban Rural Locals. (Ashish Suman, 2005).
India’s economic situation is very promising because of the fast growth and allows investors to consider setting a business over there. They also have a lot of skill employees and these employees are fast learners (Piri, 2017). Another reason that can bring opportunity is India has inexpensive labour force compared to other Asian countries. Every investor would like to look for a place that has reasonable labour cost and they are willing to learn. India’s gross domestic product grew 7.2% in the third quarter, surpassing expectations and wresting back the mantle of fastest growing economy from China (ET Bureau, 2018).
India’s culture and business idea is totally different from other countries. According to Hoftsede’s culture theory, India is high in power distance with a score of 77. This means the hierarchy of the organization is top to down and communication is only one way. Lincoln Electric should try to adopt this culture and understand what the employee wants. LE shouldn’t have any problem in the language spoken in India because English is the second language spoken there. LE can easily communicate with the local and government employees.
Through the technological analysis it will be a great strength for Lincoln Electric entering Indian market. LE could focus R&D in India for long term development. India has one of the most leading technologies and gadgets in their industries (Wiseman, 2017). Technological innovation allows the company to gain a price premium for many of their products. LE is one of the most successful R&D welding companies.

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