PESTEL Or PESTLE Analysis – Want to Know The Difference

by Shamsul
Pestle or Pestel
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Post uodated on 24th Sep 2023

PESTEL Analysis OR PESTLE Analysis

PESTLE analysis! What does this acronym denote? When you look it up on the internet, you may also find the spelling variation as PESTEL or PESTLE analysis.  The variation will probably confuse you stirring many different questions in your mind. You may find yourself wondering whether both of these terms are the same. If the same, which is the right version of the two? If both are the same thing, which is more popular than the other? In case, you cannot find any similarity, you will surely feel restless to figure out the difference between these two.

Well, stop worrying. In this article, I am going to touch upon all these points and besides this, I am going to explain the following as well.

I will discuss in detail this framework and how can it benefit you. This lucid article will be helpful for anyone even with no idea about this subject.


What is PESTEL and PESTLE Analysis?

I would like to clear the confusion about these two variants.  Both the terms are used to indicate the same concept with the slight switch of the last two letters and there exists no other difference between the two. Legal is the last letter in the first and the environment comes last in the second. This switch is not based on any logical reasoning, it just involves what the need of the hour is for the researcher.

A PESTEL analysis or PESTLE analysis is a strategic framework that develops the understanding of different macro-environmental factors and their effects on the products, countries, business, and trade. It will be helpful if you intend to start a business or plans to invest in the foreign market.

The term was formerly known as PEST but over the years it has seen many variations. Sometimes, the letters have been jumbled resulting in a totally new acronym when few more factors were added to it like Demographics, Intercultural, Ecological or Ethical. This rearrangement, subtraction or addition of the letters representing different factors have brought to surface different versions of the term such as STEEPLED and DESTEP of the same acronym.

The purpose of this tool remains the same as it was in the beginning. However, these changes do not define any individual version of the term to be valid or invalid. It depends on the researcher’s agenda. In some cases, a legal factor might not hold great value but in other, the Environmental factor might not be necessary. But in some cases, both these factors might be of utmost importance for a full fledge examination. You just need to determine your purpose.



You won’t be able to find any other logic regarding this difference. The only reason can be the exclusion or inclusion of certain factors according to the requirements of the research.

This term is, in fact, an acronym and each of its letter represent an individual domain.

Below, I would like to highlight the independent domains of each letter in the PESTEL analysis.

P political

E economic

S social

T technological

E Environmental (also called Ecological)

L legal


But Should you Even Bother with PESTEL Analysis?

You should only use it when there is no better option left. As I have already explained that PESTEL analysis is a strategic tool that keeps its focus on the influence of macro-environmental factors. The nature of this analysis is external and objective and its authenticity depends on the extensive study.

It reveals the following points:

  • What can be the reason behind the market decline?
  • What measures can you apply to develop a product or business set up in a competitive setting?
  • Which direction might be fruitful for the business?
  • Why a locality or a country has a particular scenario? (given these six sectors)
  • How can you break free from the problems that might occur in the future?

PESTEL or PESTLE is for you if you are curious to learn about any of these above-mentioned points. This comprehensive analytical tool helps you in good decision-making. If you want to tread a new path or move to a new direction, you must have all the knowledge about where this path started from and why and where it has lost its mark. That makes easier for you to pick the thread and start your journey. PESTEL is the strategic analysis that helps you achieve it easily.


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