PESTEL Analysis

Hello guys,

What is a kind of thing that we will talk about today? Something useful for marketers to analyze and monitor macro-environmental (external marketing environment) factors that have an impact on a business, PESTEL analysis. PESTEL is an acronym for Political, Economic, Social, Technological, Environment, and Legal. PESTEL analysis is used to determine how these factors will affect the performance and activities of the business in the long term.

PESTEL

Political

This factor determines how far the government influences the economy or certain industry.

Economic

Economic factor is about how big the impact of economic performance to the profit and business process of the company.

Social

Social factor also is known as socio-cultural factor. It is the about the shared belief and attitudes of the population.

Technology

This factor is related to innovation in technology that affects the operations of the industry favorably or unfavorably.

Environment

Nowadays, environment factor becomes popular in various industries. This factor includes all those that influence by surrounding environment.

Legal

This factor involves internal and also external analysis of company. This is about how certain laws that affect the business process of he company in a country. And also what kind of policies that company applies.

By using PESTEL analysis, we can know the condition of macro-environment of business. In SWOT analysis, PESTEL help us to determine the threats and the opportunities represented by macro-environment forces that the business usually cannot control. So, after we know the condition, we can create the best strategy for the business.

Written by Dera Hafiyyan