A PESTLE analysis (previously known as PEST) is a framework used by various businesses today to analyze the macro-environmental factors that can profoundly affect the company’s status. This is one of many tools that are used when a business expands to a foreign market or when a new company is established. Interestingly this tool allows you to gather the information that can later be utilized to carry out SWOT analysis. It is a way of determining the strengths and weaknesses of a company.
If you wish to see an example, you can go through the Jones electrical distribution PESTEL Analysis. The information shared in this analysis is well researched and supported by facts. All this data helps marketers plan their next move in the market. It is advised to use this tool whenever you start a new business and at least once a year. It will keep you posted about various advancements and instabilities taking place in the market.
What Are the Factors involved in PESTEL Analysis?
The PESTEL framework is made of six different factors that you can relate to any business. The abbreviation stands for:
However, the factors involved today exceed these six because of the evolution that keeps taking place every year in the market. But we will stick to these crucial ones, as they provide you with significant information to plan your next step to success. The information you gather does not always help you out. Sometimes you need more investigation to evaluate the risks involved in making the next marketing move.
If we look at the benefits, we can safely say that it is one of the finest tools to help a business grow. It can help you create strategies that involve both; external and internal factors. It can help you predict business threats, so you can take actions to completely prevent or minimize the loss. The market keeps expanding, and this tool proves to be the most crucial factor to help a business find opportunities.