PESTEL analysis in a business context

Designing a brand always takes different components into account. An analysis is made of the sector in which it operates, all competing companies are identified, and communication plans are created to anchor its actions towards the consumer. The truth is that there is a fundamental aspect that is sometimes undervalued: the environment. By understanding this, it is possible to anticipate scenarios and analyze
PESTEL
is an aid in this regard.

What is PESTEL analysis?

The matrix that analyzes the environment in which a brand operates, evaluating different factors. It is one of the main methodologies used to create strategic planning. This tool translates the forces that determine changes in the market and the influences on consumer decision-making.

The factors

There are always issues that are beyond our reach and companies face the same challenge. These issues are driving changes in lifestyle and consumer behavior, and it is crucial to identify them in order to positively impact the market:

Politics: regime stability, election period (and how these can impact society, including legislative and tax changes), corruption, security policies;
Economy: growth and employment rates, inflation and interest rates, consumer purchasing power, labor costs. Consequential impact on the industry and the products and/or services offered;
Society and culture: growth rate, average age of the population, professional trends, lifestyles, beliefs and values. This has an impact on the region where the company is located;
Technology: news, trends, challenges, possible threats, resources;
Environment: consumer demand for sustainable products, business impact on the environment (with a view to reduction), use of renewable energies, ecological regulations;
Legal: legislation in force (and compliance by the company), prospects for change, consumer rights, labor code.

In conclusion

Using the
PESTEL
In the early stages of a business, professionals are able to see what opportunities the market offers, what the main obstacles are, consumer behavior and how to conduct themselves. But be aware that this is not a watertight analysis, especially in a society that is constantly changing. How to do an analysis PESTEL? Which outputs to take into account? We’re here to help you! Don’t hesitate to contact us using the form below.