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PESTEL Analysis

PESTEL analysis is a framework or tool used by marketers to analyze and monitor the macro-environmental (external marketing environment) factors that have an impact on an organization, company, or industry.  It examines the Political, Economic, Social, Technological, Environmental, and Legal factors in the external environment.  A PESTEL analysis is used to identify threats and weaknesses which may be used in a SWOT analysis.

What this includes:

  • Government leadership, policies, and stability
  • Foreign trade policies
  • Internal political issues and trends
  • Tax policy and tariffs
  • Regulation and deregulation trends
  • Freedom of press


What this includes:

  • Current and projected economic growth (GDP, GNP)
  • Inflation and interest rates
  • Unemployment and labor supply
  • Labor costs
  • Current Exchange rates
  • Disposable income and income distribution
  • Impact of globalization

What this includes:

  • Demographics – age, gender, race, family size
  • Level of education and income
  • Employment patterns and job market
  • Consumer attitudes, opinions and buying patterns
  • Population growth rate
  • Societal values, attitudes and lifestyle
  • Ethnic and religious trends

What this includes:

  • Impact of emerging technologies
  • Research and development activity
  • Government funding for research
  • Impact of technology transfer
  • Degree of automation
  • Rate of technological change

What this includes:

  • Environmental protection laws
  • Regulations regarding energy consumption
  • Regulations regarding waste management
  • Supply of raw materials
  • Pollution or carbon footprint targets
  • Weather
  • Natural disasters
  • Climate and climate change
  • Environmental taxes
  • Demand for “green” products”

What this includes:

  • Antitrust law
  • Consumer rights and law
  • Discrimination law
  • Employment law
  • Health and safety laws
  • Equal opportunities
  • Product labeling and product safety
  • Intellectual property
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