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What Is PESTLE Analysis In Simple Words ?

In this blog, we will explore the PESTLE analysis example and its other related aspects. PESTLE analysis is a framework or tool that marketers around the world commonly use.  It helps them analyze and monitor numerous external and macro-environmental marketing forces that reflect any corporate organization.

The PEST analysis is a best-in-class tool for start-ups and those entering a foreign market. The tool is often used with two other business analytical tools called the SWOT Analysis and Porter’s Five Forces to understand the inner and outer forces that guide an organization. The collaboration of these three tools is at times known as PESTLE.

So let’s explore Pestle analysis, Pestle example, and how to do a Pestle analysis.

6 Factors On Which PESTLE Analysis Depends

6 Factors On Which PESTLE Analysis Depends

The fundamental concept of the Pestle analysis focuses on the six elements. Let’s discuss each one of them one by one.

It also helps us understand what does pestle stand for in business

“P” Stands For Political Factors

How a government intercedes in a particular organization or industry is a political factor. It refers to the influences of government policies on your company. Political factors include political stability or instability, trade, tax policies, trade constraints, etc.

“E” Stands For the Economic Factors

Economic factors determine an organization’s financial condition or a particular industry. Since these factors play a crucial role in deciding the supply-demand models in the economy, it has a lasting effect on a company, whether direct or indirect. Economic factors include economic growth, inflation, currency, interest rates, and many more.

“S” Stands For Social Factors

These factors help marketers to understand the needs of their customers better. It also emphasizes the local workforce and their sustainable working conditions. Social factors include population growth, distribution of income, attitudes towards lifestyle, and more.

“T” Stands For Technological Factors

Technology has a crucial role in the health of every business organization since the inception of the industrial revolution. Technological innovations can have a favorable and unfavorable impact on industrial and market operations, and therefore, the analysis and monitoring of these factors were critical.

These factors contribute significantly to specific decision-making scenarios, including whether it is an excellent decision to enter a particular industry or not. Technological factors include R&D, automation, technical awareness, etc. Once you know about R & D with automation and other technical stuff, the steps of nodal analysis will be easier for you.

“L” Stands For Legal Factors

Companies today need to understand the legal premises for their efficient operation. While some of these factors can overlap with the political factors, the legal factors generally involve more specific laws and policies such as copyright laws, discrimination laws, etc.

“E” Stands For Environmental Factors

Enterprises cannot fully wear away the related factors as with the increasing environmental awareness. In addition, carbon footprint targets, raw material scarcity, and emission targets have made the environmental factors even more crucial for the proper functioning of an organization. Environmental factors include environmental factors such as climate and weather, ecological compensation, etc.

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When To Use Pestle Analysis?

When To Use Pestle Analysis?

As discussed in the above section, Pestle analysis is the acronym for the six crucial external factors which may affect any business. To use the tool in the best possible way, all the six external factors discussed above must be critical. Pestle analysis is usually performed on big brands, including Uber, Coca-Cola, Adidas, etc. 

Also, Pestle analysis can be performed on various food chains, and examples of Pestle analysis for a restaurant are also available on the internet. You can download these examples of a Pestle analysis pdf.

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If You Are Launching Your Own Business

If You Are Launching Your Own Business
The first scenario that is the most suitable to use the Pestle Analysis tool is if you plan to launch your new business. Whenever you start a new business, you must consider Pestle’s six highly vital forces, including political, economic, and social. Moreover, you must have knowledge about consumer protection laws to practice corporate social responsibility.

If You Are Facing Issues With Your Business

If You Are Facing Issues With Your Business

There will be times when you have to deal with a lot of problems in your business. So, if you face problems in your business that are hard to resolve. You can use Pestle Analysis. As it will be the most effective way to deal with your business problems. Also, there will be times when you will find that solving one problem will reveal another one that is hidden underneath. But with Pestle analysis beforehand, you can predict possible problems that may come your way in the future. Meanwhile, click here to learn more aboutthe top 10 persuasive techniques.

If Your Analyst Is Working Out The Angles For Your Business

If Your Analyst Is Working Out The Angles For Your Business

Many companies hire business analysts or experts to improve employee communications and the organization’s working environment. They are good at solving internal and external problems. These guys hold expertise in solving problems and are the best at what they do. Also, the guys will always have numerous tools that will help them in solving specific problems related to the businesses.

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Best Pestle Analysis Examples You Should Know

Best Pestle Analysis Examples You Should Know

Here, we will study some of the best Pestle analysis examples. If required, students can use these retail Pestle analysis examples for their projects and assignments. That helps them get good grades in academics.

Also, students can prepare Pestle analysis student example strategic reports by using the examples discussed below.

Pestle Analysis Examples Company: Uber

pestle analysis Example - uber

Uber is one of the fastest-growing global taxi service providers. Users like its features, including easy access to the taxi with the official app the company offers its users. However, disputes such as minimum wage complications and bans do not contribute to its cause.

Now, we will understand more about the company and its offerings via a marketing Pestle Analysis example.

Political Factor

Uber has many controversies to overcome. As we have already discussed above. But one of the things that put Uber at risk is that the company has not clarified its rules & regulations. People have questions about the insurance policy of the company.

For example, some of the users’ questions are that in case of an accident, what will the company do out of the following?

  • Hold the driver of the specific vehicle accountable or,
  • Uber will take the blame on itself for the accident.

Economic Factor 

Uber operates in a shared economy, which means that the company functions in an economy where physical and intellectual resources are shared.

  • Uber operates in a shared economy. This means that the company functions in an economy where physical and intellectual resources are shared.
  • With the application, customers can easily connect to the drivers they want as per the locations they want to reach. Moreover, Uber is a lot cheaper than any other local taxis that customers can hire to reach their desired locations.
  • Since its inception, Uber has seen a rapid growth rate, which has led to severe issues and problems in numerous countries because of the local market players in the taxi market.
  • For the reasons listed above, numerous other companies are also under the authority’s eye for the unfair competition that they give to the local taxi market.
  • Some people are looking towards Uber with a positive approach as it brings new jobs. However, it’s debatable whether it is taking their job away or bringing in new opportunities.
  • One thing that makes Uber stand apart in the market is its level of popularity. The taxi market has always been full of opportunities, and Uber is one of the market players that has taken advantage of the market to the fullest.

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Social Factor 

  • Uber taxi services are one of the best in the market. Because they are user-friendly and easily accessible.
  • You can book an Uber ride at any time of the day. Just place an order via the official mobile app. After a few minutes, you will get your ride confirmation along with the driver’s details and the OTP. That will be used when starting the ride.
  • The reason people show gratitude to Uber is its affordable taxi services. But with time and an increase in popularity, the company has increased its fare charges. However, people still prefer to take Uber due to the unmatched user experience that the company provides to its customers. 

Technological Factor 

  • The reason why Uber is one of the fastest-growing taxi service providers around the world is that it has reaped many benefits through the technology directly and indirectly.
  • Using the unmatched services and the company’s experience to the users, customers post positive views on numerous social media platforms that help the company grow fast.
  • With the technology that Uber is using and the application for front-end users, anybody can book a cab from where the service is available. The official Uber App has been designed to give information to customers. That includes estimated ride charges, drop-off location, traffic, and weather. Also, the app provides flexibility to the customers to such an extent that they can even pay their service charges via the app.

Legal Factors 

As we have discussed how Uber has faced bans in many countries for different reasons. This has proved that the company needs to follow several laws.

That includes technical usage laws, labor and employee health and safety laws, and copyrights laws to continue having a stable presence in the countries in which it is operating.

Environmental Factors 

  • Various studies and use cases have been analyzed. They suggest Uber’s impact on the environment is still not certain. Reports say that few officials have confirmed that the increase in Uber services increases fuel usage and traffic congestion in most countries.
  • Also, several studies have confirmed the same with traffic congestion. And the reason behind this is that people have started using private Uber vehicles instead of taking public transport. That increases the number of vehicles on the road.

Though studies have proved the point, analysts are yet to confirm such blame on the biggest taxi services providers in the market.

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Pestle Analysis Examples: Nike

Pestle Analysis Example-Nike

Nike Corporation is an international brand that originated in the US. The company, besides manufacturing footwear and clothing, also deals in design, development, and providing premium services.

Political Factor

As Nike has a global presence, the political environment has a huge impact on Nike. Therefore, the company needs to consider a country’s taxation and manufacturing rules to make a stable presence worldwide.

Economic Factor

Nike has to focus on the economic conditions where it offers its products. Also, Nike can target countries that have a stable economy, and these countries include the US, the UK, and others. Nike can get in touch with customers who have good purchasing power in such countries.

Social Factor

Nowadays, people are conscious about their fitness. And therefore they focus more upon playing sports to stay fit. Nike plays an important role here. The company regularly brings high-quality sports shoes and apparel to the market to fulfill consumer needs. 

Technological Factor

Nike, since its inception, has given importance to technology. This helps the company to stand apart from the rest of the competition in the market.

Legal Factor

Nike keeps an eye on the shoe designs and apparel copyrights that it manufactures and will continue with the same in the future.

Environmental Factor

Nowadays, the prime concern globally is the environment. And Nike, the leading brand, needs to develop environment-friendly products.

Pestle Analysis Examples: Coca Cola

pestle analysis Example- Coca Cola

Coca-Cola is a leading soft drink producer having a global presence worldwide.

The company uses the best technology in manufacturing the drink and offers numerous products to its target audience worldwide. 

Political Factor

Coca-Cola should follow all the rules specified in a country as its products are tested by FDA. If not, countries may prevent it from continuing its operations.

Economic Factor

Coca-Cola has a global presence and a huge customer base worldwide. The company manufactures and sells its products in numerous countries. Recently, Coca-Cola has realized that people have started moving towards healthy drinks; therefore, it is moving in that direction.

Social Factor

Coca-Cola has now started focusing more on offering healthy products in the US. It has even started taking the same approach in Japan and China.

Technological Factor

Coca-Cola can improve with technology and can make effective products in the future. Also, the technology will help the brand in manufacturing a large number of quality products.

Legal Factor

The company has done well to safeguard all its business rights. It has the rights to all the products of the past and the future developed by a patented procedure.

Environmental Factor

Coca-Cola needs water accessibility to manufacture its products. The company cannot operate if they don’t have good water accessibility.

Pestle Analysis Examples: Adidas

Pestle Analysis Examples: Adidas

Adidas is a renowned brand that manufactures sports shoes and apparel. The firm originated in Germany. The brand name is inspired by its founder Adolf Hassler.

Political Factor

Adidas is one of the firms that has faced a lot when it comes to risks and civil unrest. Also, the company even dealt with changes in the political policies which affected its operations in specific countries.

Economic Factor

Until the year 2005, Adidas had to see numerous economic failures. And the profits and income of the company were affected by many economic factors. That includes inflation, per-capita income, unemployment, and taxation.

Social Factor

Adidas manufactures shoes and apparel designs that are trendy and are loved mostly by athletes and sport-loving people. Also, Adidas products are used by people of all ages, cultures, and religions.

Technological Factor

Regarding technology, Adidas stays apart from its competitors as it uses its innovative technology.

Environmental Factor

Adidas ensures that its manufacturing factories and production units do not produce any restricted goods or products.

Legal Factor

Adidas should make sure to stay away from legal trouble in any country, which can impact its brand value.

To Conclude

To Conclude

In this blog post, we have talked about the Pestle analysis of big brands in detail. We hope the information provided in these Pestle and SWOT analysis example was informative

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If you want a Pestle analysis example for banks or an example of Pestle analysis for Tesco, you can search the internet and can get them easily.

Pestle analysis examples of the fashion industry and Pestle analysis examples for a restaurant are also available on the internet. Contact our experts for pestle analysis assignment help with pestle analysis assignment example.

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Frequently Asked Questions

What are PESTLE analysis examples?

The companies like Pepsi, Apple, Nike, etc., are the perfect examples that utilize PESTLE analysis. It is a critical study of Politics, Economics, Sociology, Technology, Legal, and the Environment. It is done to analyze the business potential in a particular market.

How do you write a PESTEL analysis?

The entire process starts with the scope of the research. That covers every possible present and future scenario. The information is gathered to analyze various business aspects. Identifying sources of information is also essential. The findings are analyzed to take the most reasonable step for business growth.

What are the six elements of PESTLE?

PESTLE is the short term for political, economic, social, technological, legal, and environmental assessments. And these are the six important elements used in the PESTLE analysis. It is performed to gain valuable insights into the external environments.

Which companies use PESTLE analysis?

Many global and famous brands utilize PESTLE analysis to understand the present and future business comprehensively. It helps them to make critical business decisions depending on external factors. Some well-known companies using the PESTLE analysis are Adidas, Pepsi, Apple, Uber, Nike, and various such brands.

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