the acronym PESTEL refers to the factors analyzed: Political, Economic, Social, Technological, Environmental, and Legal. Therefore, PESTEL analysis is a japan email list solely of external factors that affect a company.
To analyze a company’s external environment, you must consider how macro factors can affect the business. This example of Apple’s PESTEL analysis will help you better understand this.
- Political factors. The policies of the country where the company operates, government stability, and changes in international agreements are analyzed. In the case of Apple, trade tensions between the United States and China, where the tech giant manufactures its iPhones, coupled with pressure from the US government to relocate production to domestic soil, are destabilizing factors.
- Technological factors. The cost of access to technology, R&D investments, and technological upgrades are essential aspects for a company’s external analysis. Apple, for example, must compete with major competitors like Google and Samsung, which respond more quickly to changing consumer needs. The restricted environment of iOS is another factor working against the brand.
- Ecological factors. These are all aspects related to environmental preservation, from pollution emitted by business activities and the use of natural resources to waste management. In this regard, Apple’s biggest train crm system users problems are: the disposal of its electronic devices, the pollution produced by its factories, and the environmental impact of its supply chain.
- Legal factors. These include laws that affect the company and limit its operations, ranging from regulations governing employment to those related to workplace safety, intellectual property, consumer protection, and/or energy consumption. In Apple’s case, its dependence on intellectual property laws for the software and music it distributes makes it vulnerable to piracy and litigation.
PESTEL analysis and the business sector
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