What is PESTEL Analysis?
The PESTEL analysis, a more complete version of the PEST Analysis, twitter database an instrument that allows for a macro view of the market, as it analyses changes external to the company, namely political, economic, social, technological, ecological and legal factors, in the business context.
Using the PESTEL matrix is essential to have a broad view of the business area and the external environment of the company and to help detect opportunities and threats relevant to the business. The acronym PESTEL refers to the various analysis factors, which we detail below.
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Political Factors
This analysis focuses on the political trends and current legislation that influence the sector in which the company operates. The stability of the government and government policies, the laws and regulations of the sector and the international trade agreements in force are some of the points that should be considered.
Economic Factors
This section can be used to analyse macroeconomic and microeconomic factors. The former are related to general supply and demand conditions, while the latter are related to consumer characteristics. These are the points to consider:
Incentives and financing available;
Similar products/services/businesses;
Mandatory taxes and fees;
Current unemployment rate and respective employment policies;
Level of economic confidence in the country.
Social Factors
For a good marketing strategy, it is essential to identify the consumer characteristics that can interfere with the business area, namely:
Lifestyle in the company area and geographical distribution;
Social roles and education levels;
Birth rate and average life expectancy;
Consumption habits.
Technological Factors
Companies are affected by digital transformation, so it is crucial to understand this factor well. Therefore, an assessment must be made of the impact of existing technological innovations on a given product or service and of the technically qualified professionals for the business area.
