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PESTLE ANALYSIS

Tesla Motors
BusinessManagementMarketingSWOT & PESTLE Writing

PESTLE Analysis of Tesla – Innovative Electric Vehicles Producer

by Shamsul

PESTLE Analysis of Tesla

 
Tesla is a well-known company in the world that manufactures electric vehicles, solar panels, battery energy storage systems, and other related products. Tesla is a US-based company and one of the largest companies in terms of market value. The leading man of the company is Elon Musk. More than 99,290 employees are working for the company, and the company has operations in over 40 countries. In 2021, the company gathered a whopping revenue of 53,823 million dollars. This external analysis of Tesla or PESTLE analysis will show you how external factors can affect the business performance of a company like Tesla.
 
Tesla wants to become the world’s largest electric vehicle manufacturer. The main motive behind it is to protect the environment by making sustainable energy eco-friendly vehicles. In order to fulfill this dream, Tesla has launched several highly innovative vehicles and products. Tesla also deals in solar energy storage systems. The company also provides an excellent opportunity for people to install a solar roof that will cut their electricity bills.
 
PESTLE is one of the most effective tools to analyze the external business scenarios of Tesla. The company can use this tool to identify its weak points and convert them into strong ones by taking aggressive and appropriate actions. So, let’s analyze the PESTLE Analysis of Tesla!
 
 
Political Factors | PESTLE Analysis of Tesla
 
The overall political environment of the US is highly robust for businesses. It holds various opportunities for businesses to use. The Government of America has initiated a funding plan of 7.5 billion dollars to help automotive companies to develop the electric vehicle infrastructure. On the other hand, the United States has various trade agreements with different countries. So, being an American automotive company is a significant edge for Tesla.
 
This kind of enormous funding will enhance the automotive operations in the country, especially in the electric vehicle segment. Electric vehicle manufacturing companies are highly reliant on semiconductor chips. But, its shortage due to the Ukraine war and Covid-19 is slowing down the speed of the automotive companies.
 
For businesses, the UK’s political environment is also conducive. But, the recent Brexit deal has created various trade restrictions and issues in the country. The UK government plans to eradicate those vehicles that run on biofuels and red diesel. It means there is a lot of scope for electric vehicle manufacturers like Tesla in the UK automotive market.
   
 
Tesla has a presence in more than 40 countries, so it is highly vulnerable to the political environment of every nation. Every country is governed by its rules and regulations regarding the production of electric vehicles. It means Tesla is highly exposed to the laws and regulations of each country. It is essential for Tesla to thoroughly analyze the trade policies and strategies before venturing into a new market or country.
 
Before installing charging stations and manufacturing plants, the company should evaluate each and every aspect, such as trade rules, import and export restrictions, and tariffs of the specific country.
 
 
Economic Factors | PESTLE Analysis of Tesla
 
When it comes to the economy, the US economy is one of the most reliable economies. However, it is currently facing a downfall due to the recent global economic recession and Covid-19. Inflation is another big concern in this regard. In order to retain skilled and competent workers, companies need to pay attractive salaries. The increasing prices of raw materials will also increase the rate of the final product, which ultimately impacts the buying power of customers. As a result, many companies, including Tesla, would face a reduction in their sales and annual profits. According to a report, the electric vehicle market in the United States is worth over 287 billion dollars, and it is growing with every passing year.
 
On the other hand, there is a chance that the growth rate of the United Kingdom will also drop from 7.5 percent to 3.6 percent. So, the UK’s economy is going to be beneficial for companies and businesses. Its per capita income is also increasing, directly enhancing expenditure and usage so companies can make higher profits.
 
In developing countries, cars are one of the major luxury goods. It is crucial to set the price of the products according to the market conditions and people’s affording power. The demand for SUVs, pickup trucks, and crossovers is really huge in these countries. The overall image of Tesla and its cars are considered slightly expensive in these countries. They can’t even think about purchasing a Tesla vehicle. However, the government is aiding people in this regard by offering incentives and financial support. Tesla can make affordable vehicles to capture new markers, especially in developing markets.
 
 
Social Factors | PESTLE Analysis of Tesla
 
The electric vehicle manufacturers can exploit the United States market because people are more curious about self-driving or autonomous vehicles due to their sustainability and innovative features. Recent surveys indicate that more than 40 percent of people would love to consider electric vehicles as their next vehicle. That’s why every EV Company is trying to produce less expensive and more efficient electric vehicles. Another survey states that people are highly interested in substitutes because they are really concerned about the environment. The rising fuel prices are another major issue for people. People who want to adopt modern or luxurious lifestyles are also interested in electric or sustainable vehicles. As Tesla is a premium brand, youngsters and high-class people are their main customers.
   
 
Tesla is trying to enhance safety features in order to avoid fatal accidents or crashes. According to a report, people love those brands that use innovation in their products and services. Being a diverse company, Tesla has a huge impact on the audience. More than 70 percent of people in the UK would love to buy electric vehicles to reduce their expenses and carbon footprint. It is a beautiful opportunity for electric vehicle companies to diversify their operations in order to make affordable and reliable vehicles.
 
Brand-conscious people are the strength of companies like Tesla. They are affluent enough to afford Tesla vehicles. They are happy with their current vehicles even after the increase in fuel prices. But, some people focus on quantity instead of quality. The company needs to carefully analyze customer preferences before launching a product in a specific region. By making better-performing and cost-effective vehicles, Tesla can easily spark the interest of every type of customer. This thing will certainly improve the profitability and reach of the company.
 
 
Technological Factors | PESTLE Analysis of Tesla
 
When it comes to spending on R&D, the US leads the chart. It spends the highest amount of money on R&D every year. In 2021, it spent 157 billion dollars, and it is going to be 171 billion dollars in 2022. Contrary, the UK government invested 14.9 billion euros in R&D in 2021. Many electric vehicle companies are testing fast charging technologies and wireless charging networks that can charge an electric vehicle in just 14-15 minutes. Gold nano-wire gel electrolyte, zinc magnesium oxide, and NanoBolt lithium tungsten batteries are one of the latest batteries. 
 
Moreover, the idea of solar-based electric cars is in the initial phase.
 
With every new launch, Tesla has been improving its technology with the cooperation of tech giants. They are installing useful features in their vehicles to enhance the experience of drivers or users. The autopilot technology of Tesla is in the testing phase, which will be a game-changer. This technology will help you to park your car painstakingly.
 
 
Legal Factors | PESTLE Analysis of Tesla
 
The National Highway Traffic Safety Administration controls the automotive sector in the United States. It designs standards and policies for automotive companies when it comes to manufacturing, designing, operating, and constructing vehicles. According to the agency, it is imperative for companies to install essential features such as automatic emergency braking, lane-keeping assistance technology, and forward-collision warning technology in each vehicle. Installing such expensive technologies would undoubtedly increase the costs of vehicles.
 
It is mandatory for automotive companies to install special features such as intelligent speed assistance systems in their vehicles in the United Kingdom. This will also increase the prices of vehicles in the UK. It can create a bad impact on the company’s sales. However, the financial support from the government will enable electric vehicle companies to build cost-effective vehicles.
   
 
 
Environmental Factors | PESTLE Analysis of Tesla
 
The scrapped or defective batteries are also causing environmental pollution. If these are not recycled properly, they can release toxic chemicals. For example, lithium-ion cells are incredibly reactive and explosive. So, they are hazardous to the environment. The chemicals released from these batteries can lead to cancer and some major neurological diseases.
 
Furthermore, the United Kingdom has banned the trade of combustion engine automobiles from 2030. Only emission-free cars would be permitted to trade. This thing will create so many growth opportunities for electric vehicle companies.
 
In addition, the US and UK are part of the Paris Agreement and adhere to the agreements and rules. In short, both countries have very strict environmental policies.
 
Tesla aims to make this world more sustainable. The company has planned to reduce GHG emissions by exploiting two significant technologies: transportation and electricity. This thing encourages people to shift to electric vehicles from conventional fuel-based vehicles. It is a winning move for electric vehicle companies.
 
 
Final Thoughts | PESTLE Analysis of Tesla
 
We will encapsulate this PESTLE analysis by saying that Tesla has immense growth opportunities in both countries. Both countries are highly favorable to electric vehicle companies in terms of their political, economic, social, technological, legal, and environmental sectors. Moreover, they are also providing special financial assistance to enhance this sector. The rising fuel prices and other related things are also increasing the demand for electric vehicles. It is mandatory for electric vehicle companies to produce efficient and highly desirable cars in order to get the attention of maximum users. These sustainable vehicles are our future. Also, electric vehicle companies should handle battery waste with care because they are highly hazardous to humans and our environment.
 
   
 
 
 
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  AT&T PESTLE Analysis  
 
 
BusinessManagementMarketingSWOT & PESTLE Writing
 
PESTLE Analysis of AT&T – Reliable Provider of Telephone Services in the U.S.
 
 by Shamsul  
 
 
 
 
 
PESTLE Analysis of AT&T
 
 
AT&T is an American multinational telecommunication company. The company is headquartered in Dallas, Texas. John T. Stankey is the CEO of AT&T. It is one of the largest telephone and mobile services providers with global operations. It was founded on October 5, 1983. We are here to conduct the PESTLE analysis of AT&T to identify its external business factors. The impact is huge of these factors on the business performance of AT&T.
 
PESTLE is the acronym for Political, Economic, Social, Technological, Legal, and Environmental factors. It is vital for companies like AT&T to use this strategic planning tool in order to understand different market dynamics such as opportunities and threats in which it is operating. Let’s start!
 
 
Political Factors | PESTLE Analysis of AT&T
 
Being a multinational company, AT&T is highly exposed to various factors, including politics. It is at risk of government regulations and policies. These factors can create big hurdles in its global business operations. Political instability is another big factor that can make its way of doing business more difficult. However, it has a stronghold in Latin America, especially in Mexico.
 
The company also has a presence in South America, particularly in Venezuela. The political system and situation in these countries are not so stable and highly unpredictable. It is hard for the company to run its business in these regions. Moreover, the connection between the US and these regions is not so good which makes it even harder for AT&T to maintain its business operations.
 
The US government is imposing stiff tariffs, trade regulations, and other laws on these countries. Such factors are not good for the overall profitability of AT&T. Some of its subsidiaries are under the surveillance of federal and state laws. As a result, its competitors are taking advantage of this factor as they are exempt from these regulations and laws. Sudden and minor changes in laws or regulations can also affect the company’s performance drastically.
 
 
Economic Factors | PESTLE Analysis of AT&T
 
When it comes to economic factors such as foreign exchange, debts, interest rates, and credit requirements, the company is heavily dependent on big financial companies. The hold is huge of these financial institutions in Europe and the US. It would be hard for AT&T to ask for debt from these institutions. Moreover, the current volatility in the financial sector also makes it difficult to lend assets. The reason is that they have strict lending regulations and laws.
 
Recent events such as Brexit, trade tensions between the US and China, and the pandemic of Covid-19 have affected the market severely. They can affect the situation of financial institutions. On the other hand, it will be impossible for companies like AT&T to borrow from these institutions. For this reason, AT&T has to increase its video and service-providing costs. Other companies mostly distribute the company’s video programming services. Such factors will put further pressure on AT&T’s profits.
 
 
Social Factors | PESTLE Analysis of AT&T
 
The role of social factors is big in the working of international companies such as AT&T. The company is highly at risk of social factors such as consumer spending power, preferences, and tastes. All these factors can influence the company’s performance in the competitive market. On the other hand, the television industry in America is getting more competitive day by day.
 
AT&T faces competition from several streaming giants like Netflix, Disney+, and Amazon Prime. These OTT platforms have successfully gathered millions of subscribers. This thing has reduced the demand for TV services in the region. The increasing use of SVOD services can also impact the business performance of AT&T.
   
 
These days, people love to watch video content of their choice on their personal screens such as tablets, laptops, and smartphones. These factors are continuously declining the revenue stream of the company. However, the company has launched the HBO Max service to increase its consumer base but didn’t get the encouraging results.
 
In this regard, the AT&T company has initiated a special mobile TV service for users. AT&T is also investing in other software-based solutions and technologies. The purpose of this initiative is to exploit the latest trends. The company is also developing 5G wireless technology. In this way, AT&T can fulfill the demand of customers effectively.
 
 
Technological Factors | PESTLE Analysis of AT&T
 
The demand of data consumption and faster video usage is growing across various industries, especially in residential. It is a big opportunity for AT&T to enhance its broadband, wireless, and video services. They need to control coverage and transport of voice, video, and data. It uses technology and software types equipment for this purpose. For this reason, AT&T is spending more money on spectrum auctions.
 
However, there are some heavy costs and delays associated with these initiatives. The suppliers can create all the difference in this situation. AT&T is finding innovative ways to develop new services and features to attract new customers. They are collaborating with different institutions to develop Multi-access Edge Computing and 5G technology. This project will be helpful for people in teaching and researching.
 
 
Legal Factors | PESTLE Analysis of AT&T
 
The emergence of wireless and mobile technology has increased the risk of pirated and unauthorized content. Such a factor has impacted the company’s business in many locations of the world. Some countries do not give proper intellectual property rights. As a result, there is a chance that the company can see a reduction in its profits in those regions.
 
Moreover, the company is operating in a competitive legal environment. So, it is highly vulnerable to anti-trust laws, piracy laws, regulations, and patent rules. It takes so much money to keep these factors at a distance. In some countries, AT&T is facing lawsuits over the violation of different laws. They have to pay a substantial amount of money to settle down these legal cases and actions.
   
 
 
Environmental Factors | PESTLE Analysis of AT&T
 
AT&T is highly exposed to natural disasters such as forest fires, earthquakes, floods, and cyclones. These factors can drastically impact the business of the company. The company is taking appropriate measures to become an eco-friendly company. Recently, they made one of the largest solar energy deals with a company to reduce electricity consumption, which is mainly generated from fossil fuels.
 
They are heavily investing in renewable energy sources. It is the mission of AT&T to reduce its carbon footprint by the end of 2035.
 
 
 
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  AstraZeneca PESTEL Analysis  
 
 
BusinessCoronavirusHealthManagementMarketingSWOT & PESTLE TrendingWriting
 
PESTEL Analysis of AstraZeneca – Innovative Medicines Producer
 
 by Shamsul  
 
 
 
 
 
 
 
PESTEL Analysis of AstraZeneca Plc
 
 
The PESTEL analysis is an excellent strategic planning tool to review the external business factors of an organization such as Political, Economic, Social, Technological, Environmental, and Legal. These factors affect the macro business environment of a company like AstraZeneca Plc. Let’s read the PESTEL analysis of AstraZeneca.
 
These factors can also impact the other players operating in the healthcare sector. A company like AstraZeneca Plc can take a competitive advantage in the market by analyzing these points. They are also helpful for boosting the overall level of profitability.
 
PESTEL analysis of AstraZeneca Plc provides complete information about current challenges present in the healthcare sector. The company is highly exposed to these challenges and competitors. For example, a profitable company can’t produce encouraging results in those regions where the political system and economic situation are unstable.
   
 
Without further wait, let’s start the PESTEL analysis of AstraZeneca Plc.
 
 
Political Factors | PESTEL Analysis of AstraZeneca
 
In determining the factors that can affect the long-term growth of AstraZeneca Plc, political factors like corruption level, political stability, and political framework can play a huge role. It is crucial to analyze the political factors of a specific country or market in which AstraZeneca Plc is operating. Currently, the healthcare company is operating in more than a dozen markets/countries, so it is open to different challenges and threats in the region. These systematic risks can disrupt the overall functioning of the company in a particular region. The following factors should be analyzed thoroughly before entering a new market,
 
  • Importance of political parties in the country and influence of these parties on the healthcare sector.
  • Political stability.
  • Risk of invasion from the military.
  • Corruption levels in the government departments, especially in the healthcare sector.
  • Interference of influence of government officers on healthcare business.
  • Legal proceedings regarding contract enforcement.
  • Tariffs, trade restrictions, and other limitations.
  • Protection of intellectual property rights by legal institutions.
  • Preferred trading countries and their political system.
  • Laws related to healthcare, especially antitrust laws.
  • Price wars and regulations in the country.
  • Tax rates.
  • Minimum wage and overtime legislation.
  • Working hours and timetable in the healthcare sector.
  • Employee benefits.
  • Safety regulations in the healthcare sector.
  • Labeling of products and related requirements.
 
 
Economic Factors | PESTEL Analysis of AstraZeneca
 
The impact of economic factors is also big on the company. There are several risks associated such as inflation rate, foreign exchange, savings rate, and interest rate. These factors determine the average investment and average demand in a country or business environment. Economic factors also increase competition in the market. AstraZeneca Plc can exploit different economic indicators like purchasing power of consumers, growth rate, and others for determining the economic growth of the company in a specific region, market, or country. Here are some vital economic factors that must be analyzed,
 
  • Type of financial and economic system in the specific country or region.
  • Economic stability.
  • The intervention of government.
  • Stability of currency and exchange rates.
  • The efficiency of economic markets in the country.
  • Infrastructure standard.
  • The competence level of employees.
  • Comparative advantages.
  • Literacy level in the country.
  • Overall productivity and labor costs.
  • Economic recession.
  • Interest rates.
  • Inflation.
  • Economic growth.
  • Unemployment rate.
 
 
Social Factors | PESTEL Analysis of AstraZeneca
 
The way of doing things and overall culture of the society can also upset the business operations of AstraZeneca Plc in a particular country. People’s leisure interests, attitudes, and beliefs also have a huge impact on the business. AstraZeneca Plc must understand the market dynamics by analyzing the behavior of customers or demographics in the region also. Being a healthcare company, AstraZeneca Plc should review the given social factors,
   
 
  • Skill level of people.
  • Demographics.
  • Power composition, hierarchy, and class structure in the country or society.
  • Education level of people.
  • Culture such as social conventions and gender roles.
  • Entrepreneurial skills.
  • Attitudes toward environmental consciousness and health.
  • Leisure interests.
 
 
Technological Factors | PESTEL Analysis of AstraZeneca
 
It is slightly difficult for companies to stay technological advance all the time. Technology is an ever-evolving thing and it requires a lot of investment. We are taking the example of transportation here. It has been growing with the passage of time and several transportation services such as Uber and Lyft have disrupted the business of common taxi business.
 
Indeed, every company is moving towards automation and there is a lot of scope in the healthcare segment for new technology and automation. This fast-changing technology can affect the business of AstraZeneca Plc in the long run. By exploiting the latest technologies, AstraZeneca Plc can take a competitive lead and can also make its business profitable. Below, we have curated imperative technological factors,
 
  • Latest technological advancements by the competitors of AstraZeneca Plc.
  • Product offering and impact of technology on this factor.
  • Cost structure and impact of technology on it.
  • Value chain structure and impact of technology on it.
  • Technological diffusion rate.
 
 
Environmental Factors | PESTEL Analysis of AstraZeneca
 
Every country has specific norms and environmental standards. Today, people are highly conscious of environmental factors. Any violation of climate laws can impact the revenue stream and overall reputation of the organization in the market. Being an international healthcare company, AstraZeneca Plc should evaluate the liability and environmental laws of every country in order to run the business smoothly. Many countries are giving a tax break to companies that produce renewable energy sources.
 
Before launching a new business in the market or venturing into any market, AstraZeneca Plc must scan the environmental standards, needed to run the business in that country. Some of the standards that AstraZeneca Plc should study,
 
  • Climate change.
  • Renewable energy sources.
  • Recycling.
  • Weather.
  • Air pollution.
  • Water pollution.
  • Laws regarding environmental pollution.
  • Waste management, especially in healthcare.
  • Attitudes toward eco-friendly and greener products.
 
 
Legal Factors | PESTEL Analysis of AstraZeneca
 
   
 
 
In numerous countries, the legal institutions and frameworks are not so influential. So, protecting intellectual property rights, copyrights, and patents is not easy in those countries. Companies like AstraZeneca Plc must review these factors carefully in order to run their business operations smoothly. By evaluating such factors, a company can enhance its competitiveness as well as profitability in the market. The managers at AstraZeneca Plc should consider the following legal factors before entering a new region,
 
  • Data protection.
  • Employment laws.
  • Safety and health laws.
  • Copyrights.
  • Consumer protection.
  • E-commerce.
  • Antitrust laws.
  • Discrimination laws.
 
 
 
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  PESTLE Analysis of Google  
 
 
BusinessManagementMarketingSWOT & PESTLE Writing
 
PESTLE Analysis of Alphabet (Google)
 
 by Shamsul  
 
 
 
 
 
 
 
PESTLE Analysis of Alphabet (Google)
 
 
Alphabet Inc. is an American multinational tech conglomerate holding company. It is a parent organization of Google. The structure of Alphabet is similar to Berkshire Hathaway of Warren Buffett. It trades with two ticker symbols such as GOOG and GOOGL. Alphabet has numerous subsidiaries that work in a range of businesses. In this post, we will do PESTLE Analysis of Alphabet (Google) for our learning.
 
The main business of Alphabet is the Google search engine which is one of the most popular search engines in the world. Baidu, Bing, Yahoo, and Microsoft are some of its main competitors of Google. The overall business of Google is highly profitable.
   
 
The major source of income of the company is heavily dependent on advertising. These ads appear on websites and their searches. The company is also making revenue from ecommerce business. Over the years, Alphabet has acquired several companies and startups. They have been working on self-driving car technology and robotics.
 
Several external business factors highly influence the overall business performance of Google. So, this is the right time to see how these factors can impact the business performance of this tech giant. To analyze these external factors, we will conduct its PESTLE analysis that mainly identifies political, economic, social, technological, legal, and environmental factors.
 
 
Political Factors | PESTLE Analysis of Alphabet (Google)
 
According to some famous critics, Google is just a monopoly. Because of this, Google has faced several anti-trust actions in different countries, especially in Europe. The company must improve its way of conducting searches. It is also a significant concern that Google has so much control over searches. Several critics have made accusations against Google for influencing the results of elections. This thing could create political pressure on the company in the future.
 
Like other American companies, Google also keeps its cash in different international countries in order to avoid income taxes imposed by the American government. Nationalists pressure the government to force these companies to bring back their money to the country. It can cut the free cash flow of Google. As a result, Google has to make expensive international acquisitions for its growth.
   
 
On the other hand, Google is not actively present in some areas or markets of the world such as China. These markets can be proved beneficial for its revenue and long-term growth. They are not present in these markets due to political tensions. In short, it could limit its future expansion.
 
 
Economic Factors | PESTLE Analysis of Alphabet (Google)
 
There is speculation that the company has gathered a considerable sum of cash, which makes it highly exposed to inflation. If the currency’s value fluctuates, it can disturb the company’s worth in the market. Moreover, the Alphabet company keeps most of its cash in overseas accounts, so it can also face exchange rate problems. If the dollar goes strong, then it could impact the worth of Google because of the exchange rates. However, the company can also face trouble if the dollar goes downward. Alphabet is highly vulnerable to stock price, and if anything happens with the stock market, then the company can reduce its market share as well as capitalization.
 
 
Social Factors | PESTLE Analysis of Alphabet (Google)
 
Several social factors can affect the business and performance of Alphabet. Here we have mentioned some important ones,
   
 
  • The usage of traditional desktop computers and laptops is decreasing day by day. They are the main means of using Google services. According to a report, most of the searches are made through smartphones these days. This change in using patterns can impact the company’s value in the long run.
  • Competitors like Facebook, Amazon, and other social media platforms have reduced the usage of the Google search engine because they are providing better services and information to consumers. They offer their services with better streaming, money transfer, shopping, and search features.
  • When it comes to shopping searches, Amazon has almost beat Google. The company failed to translate its business in conventional search to other sectors. In short, Amazon is the only leader for online shoppers. According to stats, nearly 30 percent of shoppers begin their shopping searches from Amazon. It is challenging for Google to make money from this sector.
  • The huge decline in media and TV networks is allowing several streaming platforms to enhance their apps in order to give tough competition to YouTube. Netflix, Disney+, and Amazon are leading when it comes to online streaming platforms. They are providing paid services to users so that they can get access.
  • Many people and companies think that Google is very powerful and sinister. Just because of this purpose, many people are avoiding Google and using alternatives such as Duck Duck Go, Baidu, and Yahoo.
 
 
Technological Factors | PESTLE Analysis of Alphabet (Google)
 
  • These days, people love to use mobile devices such as smartphones. They access the internet from their mobile devices. Apple’s search engine is the only competitor of Google search engine Its use is increasing with the passage of time.
  • Competitors like Microsoft and Amazon have developed useful search algorithms to give tough competition to Google. Plus, they are dominating in different sectors such as Amazon is leading the search engine chart in online shopping. There is a chance that any competitor can develop a better search algorithm that can beat Google in the future.
  • Nowadays, you can send messages, videos, audio, images, and even streaming videos through several apps like WhatsApp, Messenger, and WeChat. Some of these apps are also able to make transactions. This thing can limit the use of Google’s products that are not desktop-based.
  • Several social media apps are available for users with better features and tech tools. You can find so many alternatives to Google’s services or products with utmost ease.
  • In order to ditch search engines, many organizations have developed useful apps that enable users to get a plethora of information and news. Shopping apps are one of the biggest examples in this regard.
 
 
Legal Factors | PESTLE Analysis of Alphabet (Google)
 
  • Google is heavily growing its business in complex fields such as automobiles, robotics, finance, telecommunications, and insurance. Each field holds specific restrictions. This could limit the business operation of the company.
  • The company is highly exposed to legal and liability costs because of its venturing into different fields such as insurance and finance. They are further increasing their business which is not a good idea right now.
  • The successful anti-trust action can give an upswing to similar struggles, especially in Europe. This would cost expensive litigation.
  • There are so many big insurance companies in the industry that will try their best to keep the company out of the zone. As a result, Google can face legal proceedings and legal costs. This will ultimately reduce the expansion of Alphabet.
  • Plenty of businesses and brands are working under the umbrella of Alphabet. So, they need to spend a huge amount of money for protecting their patents and ownership.
 
 
Environmental Factors | PESTLE Analysis of Alphabet (Google)
 
The company’s overall business model is majorly dependent on internet infrastructure and data centers and electricity. Nowadays, people are conscious of climate change and green power. The increasing pressure of using greener energy can increase the operational costs of Google. As a result, they will not be able to provide free services as they used to do in the past. By exploiting green energy and ethical practices, Google can increase its market share and annual revenue as well.
 
 
 
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Do you want more advice? Do you have good practices to share? Express yourself in the comments.
 
Moreover, if you want any help to write content to drive more traffic and boost conversions, get in touch through Contact our team?
 
Do you want any help writing quality content, driving more traffic to your website, and boosting conversions? You can contact me through my Freelancer.com profile also. I always prefer to work through Freelancer.com for smooth functioning. Here you pay safely and securely.
   
 
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  McKesson PESTEL Analysis  
 
 
BusinessManagementMarketingSWOT & PESTLE Writing
 
PESTEL Analysis of McKesson Corporation
 
 by Shamsul  
 
 
 
 
 
 
PESTEL Analysis of McKesson Corporation
 
 
To analyze the external business environment of McKesson, PESTEL is one of the most valuable and proven tools that help to recognize political, economic, social, technological, environmental, and legal factors. These are crucial business factors that can impact the working system as well as the revenue flow of a company like McKesson. So, managers at McKesson should exploit this tool to identify potential opportunities and threats. Let’s workout on the PESTEL Analysis of McKesson Corporation.
 
McKesson Corporation is one of the leading American distributors of pharmaceuticals and health information technology. Certainly, it provides care management tools and medical supplies. The impact of PESTEL factors is not only on McKesson but also on the other market companies. Conducting a PESTEL analysis will give you an idea of how to boost profitability by reducing hurdles. PESTEL also provides clear information about current market challenges that McKesson is going to face in the future.
 
A highly stable political and economic environment is ideal for the ultimate growth of companies like McKesson. There are so many other advantages of performing a PESTLE analysis of your company that you can read below.
 
 
Political Factors | PESTEL Analysis of McKesson Corporation
 
Different countries have different political systems. Some countries have stable political systems and few have unstable governments. An unstable political system brings so many dangers and risks for foreign companies like McKesson. They can hurt the company’s long-term profitability in a matter of seconds. Being an international firm, McKesson is highly vulnerable to political risks. To gain a competitive advantage in any country, McKesson should assess the given political factors,
   
 
  • Product labeling.
  • Risk of invasion from other political parties or military.
  • Political system in the country.
  • Preferred trading partners.
  • Incentives and taxation.
  • Safety regulations.
  • Legal infrastructure.
  • Antitrust laws.
  • Intellectual property protection.
  • Overall corruption level in the country, especially in drug wholesale.
  • Tariffs and trade limitations.
  • Pricing limitations.
  • Necessary employee benefits.
 
 
Economic Factors | PESTEL Analysis of McKesson Corporation
 
PESTEL efficiently identifies the economic factors of an organization. Some important economic factors like inflation and foreign exchange rates can instantly destroy the business and its profitability. They help to decide companies like McKesson whether this country is ideal for investment or not. It also helps to uncover important economic factors like growth rate and interest rates necessary for a company’s smooth working. Keep reading to check some vital economic factors that McKesson must identify,
 
  • Interest rates.
  • Economic growth.
  • Discretionary income.
  • Quality infrastructure.
  • Efficiency and labor costs.
  • Recession.
  • Recovery rate.
  • Type of economic infrastructure in the country.
  • Intervention from the government in the drug whole sector.
  • Comparative benefits.
  • Stability of economic or financial system in the country.
  • Skill level of employees.
 
 
 
Social Factors | PESTEL Analysis of McKesson Corporation
 
Social norms and the overall culture of the society plays a major role in defining the success of any company. In 21st century, people still buy those products based on their beliefs and attitudes. McKesson needs to design a specific business strategy that works in different societies and cultures without creating further challenges. In PESTEL, managers must uncover the following social factors before entering a new market,
 
  • Leisure interests.
  • Gender roles.
  • Social convention.
  • Culture.
  • Attitude toward health.
  • Attitude toward the environment.
  • Overall education level in the country.
  • Entrepreneurial spirit.
  • Skill level of people.
  • Demographics.
 
 
Technological Factors | PESTEL Analysis of McKesson Corporation
 
Indeed, for better working and running a business in a smooth way, it is necessary for McKesson to adopt the latest technologies. So, the organization can increase its revenue flow and business by working with advanced technology. Every company is updating its technological infrastructure in order to take competitiveness in the industry. McKesson must analyze the following technological factors,
   
 
  • Latest technological advancements made by companies.
  • Impact of technology on product development and current offerings.
  • Diffusion of technology.
  • Technology’s impact on cost structure.
  • Impact on value chain system.
 
 
Environmental Factors | PESTEL Analysis of McKesson Corporation
 
These days, everyone is highly concerned about the environment. The government is imposing strict environmental laws on companies in order to reduce carbon footprint and emission rate. Companies like McKesson must evaluate the country’s environmental regulations before operating in it. McKesson is highly exposed to environmental and liability laws. Before conducting the PESTEL analysis of McKesson, you should evaluate the following environmental factors,
 
  • Environmental change.
  • Overall weather.
  • Laws regarding pollution.
  • Air, water, and environmental pollution.
  • Recycling.
  • People’s attitude toward eco-friendly and green products.
  • Efforts in making renewable energy sources.
  • Waste management especially in drug wholesale.
  • Endangered species.
 
 
Legal Factors | PESTEL Analysis of McKesson Corporation
 
There are so many countries in the world that have different legal infrastructures. The legal institutions are not so influential in these countries. This thing makes these countries highly unfavorable for doing business. A company like McKesson Corporation should wisely analyze important legal factors before starting working in these countries. Here are some vital legal factors that McKesson must take into account,
 
  • Health laws.
  • Safety laws.
  • Data protection.
  • Copyright and intellectual property law.
  • Employment laws.
  • Anti-trust laws, especially in the healthcare industry.
  • Discrimination laws.
  • Online platforms and consumer rights.
 
   
 
 
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  PESTEL analysis of AmerisourceBergen  
 
 
BusinessManagementMarketingSWOT & PESTLE Writing
 
PESTEL Analysis of AmerisourceBergen Corporation – A Leading Healthcare Company
 
 by Shamsul  
 
 
 
 
 
 
 
PESTEL Analysis of AmerisourceBergen Corporation
 
 
PESTEL is a great strategic planning tool that mainly targets the external business factors of a company. It stands for political, economic, social, technological, environmental, and legal factors. These factors can influence the business and performance of AmerisourceBergen in both positive and negative ways. The impact of these factors is huge on AmerisourceBergen. Moreover, they can also effect the working of other companies in the drug wholesale industry. Let’s ready the PESTEL analysis of AmerisourceBergen Corporation.
 
Organizations like AmerisourceBergen can use this tool to shape their business strategy to take market competitiveness. This tool also helps to identify the operating challenges present in the market. For example, if a company is operating in an unstable economic environment, then it can’t take the required boost. But, if it is working in a regular economic cycle, it can achieve both short and long-term objectives. 
 
   
 
Let’s start with the PESTEL analysis of AmerisourceBergen Corporation.
 
 
 
Political Factors | PESTEL Analysis of AmerisourceBergen Corporation
 
The impact of the political factor on the profitability and long-term goal of AmerisourceBergen is huge. It is a defining factor for the company’s overall image and its working. However, political stability is necessary for achieving long-term objectives without any tension in any market. Being a drug wholesaler, it is crucial for AmerisourceBergen to follow all the governmental rules and regulations being neutral. Involvement with any political party or pressure group can down the image of AmerisourceBergen in the eyes of people. Moreover, there are hundreds of political factors that can highly disrupt the performance of AmerisourceBergen. Before venturing into a new market, the organization should analyze its political system and political stability. 
 
Here, we have listed down some important political factors that AmerisourceBergen should carefully analyze,
 
   
 
  • Value of drugs whole companies in the country and government and political stability.
  • Influence of army and risk of invasion.
  • Corruption level in both government and private sectors.
  • Role of bureaucracy and its efficiency.
  • Legal infrastructure for agreements and smooth working.
  • Tariffs, trade regulations, and other related factors.
  • IPR (Intellectual Property Rights).
  • Suitable business or trading partners.
  • Antitrust laws about drugs wholesale.
  • Pricing strategy, is there any pricing mechanism in the country?
  • Incentives, tax rates, and taxation.
  • Wage levels and legislation, overtime, and minimum wage.
  • Working hours.
  • Employee benefits.
  • Rules regarding industrial safety.
  • Labeling of products and other similar requirements.
 
 
 
Economic Factors | PESTEL Analysis of AmerisourceBergen Corporation
 
The impact of economic factors is also very grave on the overall working of AmerisourceBergen. There are numerous economic factors such as foreign exchange rate, inflation, savings rate, etc. They determine the actual growth and expansion of AmerisourceBergen. If anything happens with the economy of the country, then it will create a negative impact on the company. It is imperative for AmerisourceBergen to analyze different economic aspects like the growth rate and GDP of the country before entering. Below, we have mentioned some vital economic factors that the firm should take into consideration,
 
  • What kind of economic system the country follows in which you are operating?
  • Check the stability of the economic system in the country.
  • Check the level of government intervention.
  • The efficiency of the economy, especially in the drug wholesale sector.
  • Quality infrastructure in the drug’s whole market.
  • Comparative Benefits of the country.
  • The competence level of workers, particularly in drug wholesale.
  • Literacy level in the country.
  • Productivity and labor costs.
  • Business cycle.
  • Interest rates.
  • Inflation.
  • Economic growth rate.
  • Unemployment level.
  • Flexible income.
 
 
Social Factors | PESTEL Analysis of AmerisourceBergen Corporation
 
People’s behavior towards a brand or product is another important thing that can change the way of doing business for AmerisourceBergen in the country. Still, in some regions, people prefer services or products on the basis of their attitudes and beliefs. AmerisourceBergen should analyze people’s behavior and norms before starting its business in any country. The following are some most important social factors that AmerisourceBergen must consider,
 
  • Skill level of people and demographics.
  • The power structure, class structure, and hierarchy in the country.
  • Standard of education and level of education.
  • Culture such as social conventions and gender roles.
  • Entrepreneurial skills and overall business nature of the society.
  • Attitudes towards environment and health.
  • Leisure preferences.
 
 
Technological Factors | PESTEL Analysis of AmerisourceBergen Corporation
 
It is hard to stay up-to-date all the time because technology is an ever-evolving thing. Indeed, for some companies, technology can create all the differences in different sectors. It is a digital era and AmerisourceBergen should exploit the latest technology to take a competitive edge over competitors. There are so many established players in the market that have taken advantage of technology to enhance their profitability and revenue stream. Every company is moving toward automation. So, AmerisourceBergen should conduct its technical analysis to identify where it needs improvement. By taking benefit of the latest technologies, the company can give tough competition to others. AmerisourceBergen should involve the following technological factors in its analysis.
 
  • Recent technological advancement,especially by the competitors.
  • Impact of technology on product offerings.
  • The Impact of technology on cost system, especially in drug wholesale.
  • Impact on value chain system.
  • The diffusion rate of technology.
 
 
Environmental Factors | PESTEL Analysis of AmerisourceBergen Corporation
 
Environmental factors change in different countries or markets. Some countries have different environmental norms according to their weather pattern. Nowadays, environmental factors can hurt the business case of not following climate change agreement. Moreover, there are several liability laws and environmental laws that can create serious trouble for AmerisourceBergen. Before venturing into a new market, the firm should evaluate its environmental standards in order to avoid any legal action or hatred from people.
   
 
  • Climate change.
  • Weather patterns.
  • Recycling.
  • Laws regarding pollution.
  • Water and air pollution, particularly in the drug wholesale sector.
  • Renewable energy sources.
  • Endangered species.
  • Waste management.
  • Attitude towards eco-friendly and greener products.
 
 
Legal Factors | PESTEL Analysis of AmerisourceBergen Corporation
 
In some regions, legal frameworks and organizations are not so powerful to protect the IPR of the company. However, it would be a challenge for AmerisourceBergen to enter such markets and work in. In case of violation, the company can face lawsuits and legal actions that are not good for the reputation of AmerisourceBergen. Consider the following factors before entering new markets,
 
  • Antitrust laws.
  • Data protection laws.
  • Safety and health laws.
  • Ecommerce and customer protection.
  • Employment level and laws.
  • Discrimination laws.
  • Intellectual property law, copyrights, patents.
 
 
 
 
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When to Use SWOT and PESTLE Analysis?
 
 by Shamsul  
 
 
 
 
 
 
When to Use SWOT and PESTLE Analysis?
 
 
When starting or running a business, project, or company, it is crucial to know about those factors that can impact them. Internal and external factors are highly vital in this process. There is no shortage of strategic planning tools. From SWOT to PESTLE, you can use any tool to learn about your business. However, both these tools are used frequently for strategy planning. When to use SWOT and PESTLE Analysis? Here is our brief answer for our readers.
 
 
What is SWOT?
 
SWOT stands for strengths, weaknesses, opportunities, and threats.
 
Strengths:
 
It represents those advantages that you have over other companies or businesses.
 
 
Weaknesses:
 
It represents disadvantages of your company when compared with others.
 
 
Opportunities:
 
This represents external trends that you can utilize to leverage your company.
   
 
 
Threats:
 
It represents external negative points that can create problems for your business. They affect your business negatively.
 
In SWOT, weaknesses are also considered liabilities. By conducting SWOT analysis, you can find out those internal and external factors that can work for or against you. The biggest advantage of SWOT is that it also highlights external factors of your business or project, which could create a huge difference in the failure or success of your business. It is very easy to create and conduct a SWOT analysis.
 
By exploiting all the resources and information, you can conduct SWOT analysis and run your business successfully. It helps to uncover specific problems that you can mitigate easily. It would be great for you and your business to use a SWOT analysis with your team members. In this regard, brainstorming could help you as it allows you to gather relevant factors for each section of SWOT analysis.
 
 
SWOT and PESTLE Analysis
 
What is PESTLE?
 
Before starting or launching a new business or project, you should conduct thorough market research. If you find it a difficult task, then PESTLE analysis is here to help you.
 
 
Political:
 
Political factors like regulations, the influence of a political party, global issues, laws, and legislations have huge impacts on your company. They are very serious factors that you must take into consideration.
 
   
 
Economic:
 
Economic factors like stock markets, customer confidence, taxes, inflation, and interest rates are crucial to evaluate.
 
 
Social:
 
Any changes in purchasing trends, lifestyle, norms, publicity, media, events, and advertising fall in this category.
 
 
Technological:
 
The impact of the latest technology on your business, existing technology infrastructure, manufacturing, communications, licensing, and other similar factors are technological factors.
 
 
Legal:
 
Any potential changes in legislation, foreign trade policy, or everything in between can affect your company’s business performance.
   
 
 
Environmental:
 
Whether local or global, environmental issues like climate change, waste management, carbon emission, and pollution are considered as environmental factors.
 
 
Unlike SWOT analysis, PESTLE analysis mainly focuses on external businesses that are outside of your control. The above-mentioned factors of PESTLE affect the business and can decrease your business growth. However, it also aids in finding new growth opportunities.
 
 
Comparison Between SWOT and PESTLE Analysis:
 
There is no doubt about it that both methods are widely used for strategic planning. They are highly useful for giving complete insight to run your business efficiently. So, comparing them will not be a great way.
 
There is one disadvantage of PESTLE. It doesn’t analyze the internal factors of your project. It just only analyses the external factors of your business. So, if you want to fully analyze your business, you must take the help of SWOT analysis.
 
On the other hand, SWOT analysis equally analyses your business’s internal and external factors. Strengths and weaknesses are internal factors, whereas opportunities and threats are external factors in a SWOT analysis. So, it provides a deep and detailed analysis of your company.
   
 
 
Working as a Team for the Success of a Business:
 
If you are conducting a SWOT or PESTLE analysis, but your team is not in the same room, then it would be difficult to collect information and brainstorm. There is a chance that you will miss important factors. This thing is not ideal for your project or business. It is imperative to work as a unit or team and collaborate with each other. The leader of the project can draw PESTLE or SWOT diagram to make things easier. Collaborate with relevant departments or people to get the right and correct information. In this way, you can reduce the chance of error.
 
 
 
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  SWOT or PESTLE  
 
 
Better TipsBusinessManagementMarketingSWOT & PESTLE TrendingWriting
 
SWOT or PESTLE Analysis | Which is Useful for Business
 
 by Shamsul  
 
 
 
 
 
 
 
SWOT or PESTLE Analysis | Which is Useful for Business
 
 
A SWOT or PESTLE analysis is useful for both new startups and established businesses to know in which direction your business is going or will go. They are also helpful in knowing whether your business plan is feasible or not. A SWOT or PESTLE analysis can also help you make suitable decisions for your business and identify your goal’s advantages and disadvantages. Both analyses can be applied to both small and big businesses or projects to uncover the potential failure or success areas. Is it essential to conduct a SWOT or PESTLE analysis? Honestly speaking, it depends on your business and business operations type.
 
This article will cover some essential factors about a SWOT or PESTLE analysis and how they can be helpful for your business and ambition.
 
 
What is the Difference Between a SWOT or PESTLE Analysis?
 
A SWOT analysis mainly focuses on your business environment’s internal actions or operations. A PESTLE analysis mainly focuses on the external processes of your business environment. You can manage your strengths, weaknesses, opportunities, and threats through SWOT analysis, while PESTLE political, economic, social, technological, legal, and environmental factors are outside your authority.
 
 
What is a SWOT Analysis?
 
A SWOT analysis mainly highlights four important factors,
 
  1. Strengths – What are your business strengths or what do you have better than your competitors?
  2. Weaknesses – What are your weaknesses or where do you have to make improvements?
  3. Opportunities – What are your strengths or what factors you can exploit to enhance your business?
  4. Weaknesses – What are your weaknesses or what factors could hurt your business?
 
 
Strengths – SWOT Analysis
 
  1. What are the important factors that your business is doing better than others?
  2. What are the business advantages do you have over your competitors?
  3. What unique resources do you have over others?
  4. What characteristics or features separate you from businesses?
  5. What is your USP (Unique Selling Point)?
  6. Do you have innovative technology, investment, intellectual property, or capital?
  7. What major factors make you the right man for your business?
 
   
 
 
Weaknesses – SWOT Analysis
 
  1. What areas are your weaker points or does your business need improvement?
  2. Are your rival companies or business better than you at different things?
  3. What potential resources do you need?
  4. What are the factors that you should avoid?
  5. What products or services would make you a loser?
  6. Are you fulfilling the needs of your target audience?
 
 
 
Opportunities – SWOT Analysis
 
  1. What markets can give your business a much-needed boost?
  2. How huge is your total addressable market (TAM)?
  3. What are the newest market trends you should exploit to leverage your business?
  4. What technologies can give your company an upper hand over others?
  5. Who are your major competitors?
  6. Does your business need a special boost?
 
 
 
 
Threats – SWOT Analysis
 
  1. Find out the emerging companies that can hurt your business.
  2. Does your competitor have the potential to penetrate the same market you are operating in?
  3. Find out the negative social trends that can impact your business.
  4. What hurdles can you face?
  5. What is your current financial condition?
  6. Could your weaknesses turn into a big threat?
 
   
 
Key Takeaways – SWOT Analysis
 
A SWOT is one of the most useful processes that help to identify your business strengths, weaknesses, opportunities, and threats. It is a simple method to analyze the internal business factors. By utilizing SWOT, you can build effective strategies for your business that will help you enhance your strengths, reduce weaknesses, increase your opportunities, and terminate your threats.
 
 
What is PESTLE analysis?
 
A PESTLE analysis mainly highlights six factors that are outside of your business.
 
  1. Political – How can/will the present political condition of your country impact your company? Will a specific political party in your country impact your business growth?
  2. Economic – Will financial problems and economic condition of your country or the country in which you are operating affect your company or business?
  3. Social – What social trends, cultures, demographics, lifestyles, or opinions could hurt your business growth?
  4. Technological – Could the latest technology disrupt your whole business operations? Could your current technological infrastructure work for you?
  5. Legal – Could new laws, policies, rules, or regulations affect your work?
  6. Environmental – Could environmental issues like pollution, waste management, and climate change impact your manufacturing ability?
 
 
Political – PESTLE Analysis
 
  1. Which strategies of government assistance or impede your business?
  2. What initiatives, grants, or tax refunds that you could take advantage of?
  3. Is political instability a big threat for your business?
  4. Will the international trade policy favorable for you?
  5. What will be the impact of current tax legislation on your business?
  6. Are climate laws posed any threat for your business?
 
 
Economic – PESTLE Analysis
 
  1. Is the current financial situation a big concern for you?
  2. What is the exchange rate or how it could impact you?
  3. Will interest rates impact your economic status?
  4. What is disposable income? How it could affect you and your target audience?
  5. Can your loyal customers have enough money to buy your products?
  6. How change in tax rules can hurt your performance?
 
 
 
Social – PESTLE Analysis
 
  1. What is your target audience or what demographic are you directing?
  2. What is the population growth rate in the country?
  3. What are the latest social trends people are following?
  4. What is the purchasing power of your target customers?
  5. What message do you want to convey to your audience?
  6. What are the similar businesses and competitors affecting your growth?
 
 
   
 
Technological – PESTLE Analysis
 
  1. What kind of IT infrastructure do you require to finish the project?
  2. Do the latest innovations in internet connectivity hinder or benefit you?
  3. Will automation or artificial intelligence impact your business?
  4. What type of security infrastructure do you want to protect your processes or IP?
  5. Is it possible to counterfeit your products or technology?
 
 
 
Legal – PESTLE Analysis
 
  1. Does the legal framework of your country similar to the other countries?
  2. What are the safety standards you have to follow?
  3. Is it possible to patent your product?
  4. Could you protect your unique selling proposition by copyrighting your product, logo, or brand?
  5. What labor laws can impact your operations?
  6. Is it essential to follow safety and health laws?
 
 
Environmental – PESTLE Analysis
 
  1. What is your company’s carbon emission rate?
  2. Can manufacturing be finished proficiently?
  3. How can climate change affect your business?
  4. Should you promote sustainability and positive business ethics?
  5. Can you counterbalance your carbon footprint?
  6. How can you reduce emission rate by increasing sustainability?
  7. Will the shortage of raw materials affect your business?
 
 
Key Takeaways – PESTLE Analysis
 
A PESTLE analysis helps to analyze or identify the external business environment. It is a great method to enhance your competency by evaluating all the factors. In short, a company can take a competitive advantage over others by conducting this analysis.
 
 
Final Thoughts:
 
Both SWOT and PESTLE analysis are somehow interlinked. If you are conducting a SWOT analysis, you should pay attention to the PESTLE. Opportunities and threats are external factors in a SWOT analysis, and PESTLE helps identify external business factors. But, both methods help build a solid strategy. It is a useful strategic tool for marketing, businesses or sales.
 
Conduct a SWOT or PESTLE analysis to understand the market dynamics, demographic trends, and your competitors. In short, you can have complete insight into the market and customers. It is important to be meticulous and realistic when conducting a SWOT or PESTLE analysis.
   
 
 
 
 
Need Help or Advice in Content Management:
 
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  Pakistan PESTLE Analysis  
 
 
BusinessManagementMarketingSWOT & PESTLE Writing
 
PESTLE Analysis of Pakistan
 
 by Shamsul  
 
 
 
 
 
 
PESTLE Analysis of Pakistan
 
 
Pakistan is a South Asian country that shares borders with India, China, Afghanistan, the Arabian Sea, the Gulf of Oman, and Iran. The capital city of the Islamic Republic of Pakistan is Islamabad. Karachi is one of the largest cities in the country. The total area of Pakistan is 881,913 km2, and its population is 220.9 million (2020). In terms of area and size, it is the 33rd largest country in the world. After Indonesia, Pakistan is the 2nd largest Muslim country in terms of population. Let’s read the PESTLE analysis of Pakistan.
 
Pakistan is a home to various ancient civilizations, such as the Indus Valley civilization. It is one of the most prominent civilizations in the world. Different invaders, conquerors, and rulers occupied Pakistan in history. The British Empire was the last invaders. In 1947, the British Empire divided the sub-continent. As a result, Pakistan gained independence on Aug 14, 1947.
 
In this article, we will discuss the PESTLE analysis of Pakistan. Thus strategic management tool will help to identify macro-environmental factors such as political, economic, social, technological, legal, and environmental. So, let’s begin!
  
Political Factors | PESTLE Analysis of Pakistan
 
  • Political or Government System:
 
In Pakistan, the government follows the Federal Parliamentary Democratic System of Government. The role of Prime Minister is huge when it comes to running the government and administration. The power of the President is not so significant. Pakistan politics are crowded with big names like PML (N), PTI, PPP, ANP, MQM, and more when it comes to political parties. It is important to quote that the country’s military has a strong impact on politics. No party can get power without the consent of military generals. According to some critics, the military’s role in the country’s politics is not good for the country’s growth.
 
  • Diplomatic Relations:
 
In general, the country has established strong relations with other countries, including the two giants such as the USA and China. But, its friendship with China is proof that it gives importance to neighboring countries. It is an unbreakable and rock-solid connection. On the other hand, its only rival of Pakistan is India.
   
 
  • Conflict with India:
 
India is one of the fastest-growing and developing countries after China. Moreover, Pakistan’s conflict with India over some major issues is really concerning. The conflict is due to the LoC, water, border, and Kashmir. But, the culture, language, and history of both countries are almost the same. If both countries collaborate with each other, no one can stop them to make fast progress.
 
  • Political Instability and Corruption:
 
The main problem in Pakistan is the high level of corruption. According to the rankings of Transparency International, Pakistan is one of the most corrupt countries in the world. The political history of Pakistan is not so good. The political instability has damaged the country’s image and economic condition. Protests, extremist groups, strikes, political assassinations, and other factors have destabilized the country’s political system.
 
 
Economic Factors | PESTLE Analysis of Pakistan
 
  • Gross Domestic Product:
 
In 2021, the annual GDP of Pakistan was 264 billion dollars. Its per capita income was 1321.3 dollars in 2021. On the other hand, the country is trying to become one of the top economies by 2047.
 
  • Foreign Direct Investment:
 
FDI is very crucial for the economy of the country. When it comes to investors, China is one of the largest investors in Pakistan. Other countries like the USA, South Korea, Japan, the UK, and Hong Kong are also investing in the country. The country can attract more foreign investments by increasing the domestic consumption level. For this reason, the company should enhance local spending power.
 
  • Economic Challenges:
 
Instability, inconsistency, corruption in government, personal political strategies, bad law enforcement policies, and an unfriendly business environment have created so many difficulties for the country. These challenges are hurting the economic condition of the country and preventing foreign investors from investing in Pakistan.
   
 
  • Imports and Exports:
 
Crude oil, gas, palm oil, refined petroleum, and other similar products are the top imports of Pakistan. They import these things from China, UAE, Japan, Saudi Arabia, and Indonesia. House linen, non-knit women’s suits and men’s dress, and pure cotton are Pakistan’s top exports. The country exports these things to Germany, the USA, Afghanistan, China, and the UK.
 
 
Social Factors | PESTLE Analysis of Pakistan
 
  • Demography:
 
The total population of the country was 220.9 million in 2020. It ranks 5th position when it comes to the most populated countries globally. Islam is the official religion of Pakistan and Urdu is the official language. More than 97 percent of the people are Muslim, and the other 3 percent are minorities.
 
  • Trends:
 
The role of a family is critical in Pakistani society. They follow both western and eastern cultures when it comes to dressing or fashion. They have the best and cheapest labor supplies in the world. The majority of families are from the middle class group. The employment rate is very low in the country, and it is really difficult to get a suitable job without connections or references.
 
  • Social Challenges:
 
Gender discrimination, unaffordable housing, shortage of food and water, poor transportation, terrorism, poor literacy rate, extremism, and other similar factors are some social challenges in Pakistan. The country has been facing these issues over the years.
 
 
Technological Factors | PESTLE Analysis of Pakistan
 
  • Tech Innovation:
 
The country has become a hub of technological and scientific solutions. Pakistan is an atomic power with so many resources. After the pandemic, the trend of online shopping has increased in the country. Online shopping giants like Alibaba and Aliexpress are some leading e-commerce platforms in Pakistan. There is no doubt about it that the country is progressing in terms of digital innovation. The usage of the internet and smartphone is also mounting in the country.
 
  • Social Media:
 
Social sites like Facebook, Twitter, and Instagram are very popular in Pakistan, especially among youngsters. In some regions, there is no access to the internet, which is problematic. If Pakistan wants to become a digital country, it has to upgrade its internet system. The Government of Pakistan is taking initiatives to improve tech infrastructure. They are exploiting tech opportunities. But, all these things require a huge investment and hard work. The country should promote an entrepreneurial mindset as well as innovation.
   
 
 
Legal Factors | PESTLE Analysis of Pakistan
 
  • Regulations:
 
The country’s constitution does not allow any discrimination regarding religion, gender, caste, race etc. Their working day consists of 7 to 8 hours and strictly prevents overtime limit to 12 hours. The constitution ensures to protect the citizens of Pakistan.
 
 
Environmental Factors | PESTLE Analysis of Pakistan
 
  • Environmental Problems:
 
Excess usage of plastic bags, air pollution, water pollution, land pollution, deforestation, climate change, soil degradation, and waste management are some environmental challenges that Pakistan is facing currently. The country should take some green initiatives in order to make the country a better living place.
 
  • Tourism:
 
When it comes to tourism, Pakistan has a lot of potentials. Also, note that the Pakistanis are very friendly and welcoming people. Its hospitality industry is remarkable. Pakistan has much more to offer, such as mountains, natural sceneries, cuisine, landscapes, rich history, and culture. But, tourists do not prefer to select this country due to its bad reputation, terrorism, and economic instability. Pakistan can improve its tourism industry in order to make revenue.
 
 
Final Thoughts | PESTLE Analysis of Pakistan
 
We have concluded from this analysis that Pakistan could be the fastest-growing country in the world. But, they always face political turmoils, social, environmental, and legal problems. But, they have the potential to grow in terms of tourism and tech innovation. On the other hand, Pakistan should improve its foreign policy to strengthen relations with other countries, including India. By doing so, the country can attract foreign investments, businesses, companies, and tourists. Pakistan’s army has controlled the terrorist attack in the recent few years. It is a good thing for the growth of Pakistan and its people. We hope this PESTLE analysis will clear all your doubts about Pakistan.
 
 
 
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  Sri Lanka PESTLE Analysis  
 
 
Better TipsBusinessManagementMarketingSWOT & PESTLE Writing
 
PESTLE Analysis of Sri Lanka
 
 by Shamsul  
 
 
 
 
 
 
 
PESTLE Analysis of Sri Lanka
 
 
Sri Lanka is a South Asian country which is also called Ceylon. The country’s official name is the Democratic Socialist Republic of Sri Lanka. The Gulf of Mannar and Palk Strait separate the country from the Indian Sub-continent. Sri Jayawardenepura Kotte is the capital city of Sri Lanka, but its largest city and trade hub is Colombo. Let’s read the PESTLE analysis of Sri Lanka.
 
The total area of Sri Lanka is 65,610 km2. In terms of area and size, it is the 120th largest country in the world. In 2020, the total population of Sri Lanka was 21.92 million. Sri Lanka has rich culture and history when it comes to history and culture. Its geographic location played a major role in history from a different POV.
 
Portuguese invaded the country in the 16th century accidentally and controlled it. Then Dutch colonists occupied the country and kicked out the Portuguese. During the period of 1815-1948, British colonists ruled the country. Today, we will discuss the PESTLE analysis of Sri Lanka by identifying its political, economic, social, technological, legal, and environmental factors. The impact of these factors is really huge on the country. Here’s the detailed analysis of Sri Lanka,
  
Political Factors | PESTLE Analysis of Sri Lanka
 
  • Government System:
 
In Sri Lanka, there is semi-presidential form of government and administration. There is a cluster of democratic parties in the country. The government of Sri Lanka consistently organizes elections among these democratic parties. The party that gets the maximum number of votes forms the government. In the past, the country had not very good relations with India. But, they have resolved their conflict peacefully. On the other hand, Sri Lanka has very good relations with other regional countries such as Pakistan and China.
   
 
  • Alliances:
 
Above all, the country has alliances and membership with some of the world’s top institutions like the World Bank, IMF, Asian Development Bank, SAARC, the UN, G77, the Colombo Plan, NAM, and the Commonwealth of Nations.
 
  • Political Challenges:
 
The Sri Lankan political system has no freedom of speech, political dominance, and positive encouragement. They oppress these factors, which make the country highly volatile. It is imperative for the Sri Lankan government to introduce reforms in human rights, minorities, and the community. These factors are important for achieving political stability in the country.
 
 
Economic Factors | PESTLE Analysis of Sri Lanka
 
  • Gross Domestic Product:
 
In 2020, the annual gross domestic product (GDP) of Sri Lanka was 81.120 billion dollars. It was the 66th highest in the world at that time. Similarly, in the same year, the country’s per capita income was 3697 dollars, and it was 113th highest in the world.
 
  • Foreign Direct Investment:
 
According to economists and World Bank, the country’s economy is struggling and facing some major challenges. Currently, its economy is shifting towards urbanization and industrialization. Such efforts can help Sri Lanka to bring new investors in the country. China is the main investor in Sri Lanka.
 
  • Imports and Exports:
 
Ladies’ undergarments, tea, and vegetables are some of the main exports of Sri Lanka. Sri Lanka exports these things to India, UK, the USA, Italy, and Germany. Gold, knitted fabrics, refined petroleum, and cars are its main imports. Sri Lanka imports these things from China, India, Malaysia, UAE, and Singapore.
 
  • Economic Challenges:
 
Just like political challenges, Sri Lanka is also experiencing some important economic challenges. In order to improve the economy, the government should take some aggressive initiatives to address economic concerns. Unemployment, increasing food prices, and inflation are some critical economic challenges the country is facing right now.
   
 
 
Social Factors| PESTLE Analysis of Sri Lanka
 
  • Demography:
 
21.92 million people are populating the country. The majority of people follow Buddhism. Approximately 70 percent of people are Buddhist, and the remaining ones are minorities. The average life in Sri Lanka is 72 to 78 years. It is because of the clean air and natural landscapes. The most surprising element about Sri Lanka is that it has a literacy rate of 92 percent, which is quite commendable.
 
  • Cultural Diversity:
 
The socio-cultural diversity in Sri Lanka is very strong because it is a home of ethnic groups and other groups. When it comes to culture, Sri Lankan culture is quite like India.
 
  • Social Challenges:
 
Discrimination towards gender, caste, religion, and other factors is huge in Sri Lanka. Moreover, the higher unemployment rate is another sign of worry. In short, Sri Lanka is facing severe social challenges. They depend heavily on agriculture, and growing population is another concern.
 
 
Technological Factors | PESTLE Analysis of Sri Lanka
 
  • Adopting Technology:
 
Sri Lankan government has realized the importance of technology and science. Due to this reason, government and national institutions are taking the necessary initiatives to make the country digital. But, they require a lot of investment and resources to do so. According to studies, the computer literacy rate in the country is just 30 percent which is really poor.
 
  • Technological Trends:
 
Many e-commerce stores are working hard in the country. It is because people now prefer online shopping in Sri Lanka. Moreover, a major portion of the population loves to use social media websites and apps like Facebook, YouTube, Twitter, Instagram, LinkedIn, and Messenger. But, the use of these social sites is really negative as they spread false information.
   
 
 
Legal Factors | PESTLE Analysis of Sri Lanka
 
  • Regulations:
 
Surprisingly, the judicial and legal system is quite confusing in the country. Moreover, they don’t distinguish between international and local workers. The minimum wage is 10000 Rupees (50 US dollars). Surprisingly, some regulations and a flawed legal system make the country a little risky for foreigners.
 
 
Environmental Factors | PESTLE Analysis of Sri Lanka
 
  • Environmental Problems:
 
Factors like deforestation, overfishing, and industrial development are causing environmental problems in Sri Lanka, such as water pollution, poor waste management, air pollution, land pollution, water pollution, and more. These signs are really threatening and can cause serious trouble in the future.
 
  • Tourism Industry:
 
Indeed, there is no doubt that Sri Lanka is one of the most beautiful countries in the world with some scenic greenery, natural landscapes, and captivating weather. It has the potential to attract tourists worldwide, but its bad reputation is creating problems. However, the country has everything that a tourist country can offer.
 
 
Final Thoughts | PESTLE Analysis of Sri Lanka
 
This study shows that Sri Lanka is a beautiful country with massive potential. It is one of the developing countries. Factors such as poverty level, inflation, lack of technological resources, and environmental problems are hurting the country’s image globally. In order to take the lead, Sri Lanka should invest in the tech industry. In general, you will love visiting this country.
 
 
 
 
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