PESTLE ANALYSIS

Microsoft SWOT Analysis | Microsoft Marketing

April 20, 2021 0 comment

PESTLE Analysis of Uber | Uber PESTLE Analysis

by Shamsul March 17, 2021

PESTLE Analysis of Uber | Uber PESTLE Analysis

Uber is one of the fastest increasing app taxi-sharing companies in the world. They have been in the limelight or news due to some specific reasons. The main popularity of this company is its different controversies such as banning, minimum wage problems, and other related issues. Despite all the controversies, the company is still growing in terms of profitability and popularity. In this PESTLE analysis of Uber, we will talk about political, economic, social, technological, legal, and environmental factors that can affect the company. Let’s begin:

PESTLE Analysis of Uber | Uber PESTLE Analysis

Political Factors (Unlimited Controversies):

Uber has faced a lot of controversies on different issues. At the start, they did not have obvious regulations. They didn’t have a clear insurance policy. So, it is really difficult to determine the faulty whether it is the driver of the company in case of an accident. They faced different problems in different countries. In France, they faced penalties due to ineffective advertising. In Netherland, they faced a ruling against drivers for not having Taxi licenses. Moreover, they also faced banning in several Asian countries. The minimum wage problem is another controversy that tarnished the brand’s image globally. They are also struggling with commercial licensing in various countries.

PESTLE Analysis of Uber | Uber PESTLE Analysis

Economic Factors:

Uber works in the sharing economy which is a different type of industry. It means they have to share resources in order to earn a profit. They hire drivers that drive the customers to their desired location. The main attraction of Uber is its easy booking process and it is also cost-effective as compared to taxis. Since its launch, Uber has grown insanely. But, due to its inequitable antagonism against taxis, many countries banned Uber. There are some other countries that are also planning to ban the services of Uber but they can’t ignore the fast development and growth of Uber.

According to many people, it creates job opportunities for jobless people. As compared to regular taxis, Uber’s service is really easy and comfortable, too. You can’t ignore the immense growth of Uber, which shows the economic potential of this taxi-sharing company. Now, this market is really saturated due to new players like Lyft.

PESTLE Analysis of Uber | Uber PESTLE Analysis

Social Factors (Easy Availability):

Most of the users love its easy accessibility and comfortable ride. You can book your ride with the help of the Uber mobile app anywhere and anytime. It needs only a few taps to book your ride. It is really fascinating for tech-savvy people. Moreover, its effective pricing is enough to entice customers. Now, Uber is working with full potential in North America and other regions of the world. You can enjoy rides at any time with just a few clicks and share your experience on social sites.

This kind of marketing helps to attract new users. Due to immense popularity, the prices of Uber rides rose in some cities which is really appreciating for the company but not for users. The main attraction of Uber is its easy accessibility and due to this reason, people love to use Uber occasionally. It is a big opportunity for Uber to introduce accessibility in their system in order to increase their profitability and popularity.

PESTLE Analysis of Uber | Uber PESTLE Analysis

Technological Factors:

The rapid growth of Uber is due to its marketing on social media. Customers share their experience on social media through posts and stories which results in the immense popularity of the company. It is an effective tool to grab the attention of new users. Uber fulfills the needs of customers by offering cheaper rides. Users can make appointments with the assistance of the Uber app. Moreover, you can also see the estimated ride charges on this app which depends on several factors like weather, traffic, and drop-off location. Users can pay the charges directly through the app which provides ease to customers.

You can easily get a ride because there are several Uber drivers that are always ready to drive the customers to their desired destination. In short, we can say that Uber’s main work is dependent on the mobile app. In case of any nuisance such as break down of app or functioning problems can cause bad consequences on Uber. It is really imperative for Uber to make sure that its app works properly in every situation. Internet problem is a universal issue that causes trouble sometimes for Uber drivers and consumers too.

PESTLE Analysis of Uber | Uber PESTLE Analysis

Legal Factors (Banning):

Legal factors are directly related to political factors in this case. Recently, Uber faces huge backlash, attempted bans, and bans in different locations of the world. It is necessary for the company to pursue technical usage laws, labor laws, employee safety laws, and copyright laws.

PESTLE Analysis of Uber | Uber PESTLE Analysis

Environmental Factors (Dubious Responses):

According to experts, Uber has a big impact on the environment. Most people think that it increases fuel consumption and traffic congestion. According to reports, Uber has not augmented congestion. Many people prefer to use Uber rides instead of public transportation. Many experts compare the fuel consumption of Uber with public transportation and the results are not so much surprising. So, we can say that Uber is doing really well in the environmental sector and not damaging the environment, and not causing traffic congestion.

Conclusion:

There is no doubt that Uber is a top player in the taxi-sharing company. The company is best known for its easy accessibility, cheapness, and hullabaloos. There are some countries that are discussing this company due to its large size and job opportunities. Some countries are supporting Uber but some countries have completely banned Uber. That’s why it is facing banning and restriction problems in various countries.

On the other hand, Uber is continuously growing in terms of popularity and market share. It has a great competitive over regular taxis and public transport. Users can book Uber rides with their mobile app with just a few taps. This thing provides easiness to users and Uber drivers can pick you from your desired location and drive you to your desired destination at economical rates. It is really important for Uber to address its controversies and negative impact in order to win the trust of users.

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March 17, 2021 0 comment

PESTLE Analysis of Nestle | Nestle PESTLE Analysis

by Shamsul March 17, 2021

PESTLE Analysis of Nestle | Nestle PESTLE Analysis

The PESTLE analysis is an external strategic business tool that helps to understand the business tactics of any company. The PESTLE analysis of Nestle gives complete details about various external factors such as political, economic, social, technological, legal, and environmental. It gives complete information about the extrinsic scenarios that can influence the brand or business. It is a useful business tool for big companies like Nestle, as it aids to identify changing market dynamics and promote the level of business constantly. Scroll down to check out the PESTLE analysis of Nestle.

PESTLE Analysis of Nestle | Nestle PESTLE Analysis

Political Factors:

According to surveys, Nestle works across 190+ countries and it is heavily influenced politically due to different rules and regulations of countries. They experience different challenges on daily basis due to its huge size. They have to look at things closely and carefully such as environmental regulations, taxation, and import/export laws of several countries. Sometimes these things work in the favor of the company but sometimes they have to face severe consequences. The change in labor laws is also a big problem for the organization because it forbids the exploitation of child labor in cocoa farms. According to reports, this thing can affect the company’s operation indirectly. It is a fact that big global companies like Nestle perform well in suitable and favorable conditions.

The instability creates a bad impact on the working and operation of the company. For example, the Brexit period was really challenging for the company. This thing forces the company to rethink its decisions in this country. This type of instability disturbs the working of Nestle. It creates several problems for both companies and people in the form of unemployment and low wages. Due to strict food regulations, the company has to face stringent and extensive testing in order to create new products according to the regulations. You can take the example of Maggi which faces the same problem. Recently, India reduces the corporate tax which is really welcoming for Nestle. It gives Nestle a good opportunity to form better and more products at an economical rate. It directly gives benefits to customers.

PESTLE Analysis of Nestle | Nestle PESTLE Analysis

Economic Factors:

Nestle is a global organization that is operating in various countries. It is really crucial for the company to make several economic policies according to the economic situations in a specific country. As affordability is the biggest factor, so it is really hard to provide more and better-quality products in those markets where the prices of raw material keep fluctuate due to economic and political factors. As the cost of raw material is increasing on daily basis and the trade tension between the US and China also creating problems, so it is really challenging for Nestle to manage things properly. This thing creates instability between suppliers.

Disposable incomes are also a big hurdle in the way of best quality products. Political unrest and fluctuating exchange rates are also problematic for the organization. The company is trying to improve local production in order to reduce the manufacturing cost. The increasing cost of agricultural products and different segments are influencing the profitability of Nestle. As China and US are two major markets of Nestle, so the political stability in these markets increase the revenue system and offer growth opportunity to Nestle.

PESTLE Analysis of Nestle | Nestle PESTLE Analysis

Social Factors:

No doubt, Nestle is a big organization. These kinds of large-scale organizations are easily influenced by changes in trends formed by the customers. The company is trying to manufacture healthy products such as low fats and sugar items for health-conscious consumers. The company has strong monitoring, processing, and manufacturing system that provides high-quality products. These products are minimizing health risks. It is due to the effective storage and supply chain network. The biggest success of Nestle is its better planning and strategy because they understand the needs of consumers.

Due to the rising sustainability goals, the company has inaugurated the ground-mounted solar plant in the United Arab Emirates. As people are more concerned about pre-cooked and canned products, the company ensures the quality of products by investing a huge sum in the R&D sector in order to satisfy the customers. In order to fulfill the requirements of customers, the company is really improving its working environment by implementing innovative technologies which surely increase the profitability and popularity of Nestle.

PESTLE Analysis of Nestle | Nestle PESTLE Analysis

Technological Factors:

Nestle firmly believes in the assimilation of digital solutions, models, and services. They are essential factors for both the internal and external integrity of the company. Due to the rising cyber-attacks, privacy of data, security issues, and reliability, it is crucial to develop a solid plan to protect the system in case of any emergency or mishap. For achieving desired goals, the company heavily invested in technology segments such as real-time data. They are also investing in different programs that help to check the nutritional information of different products. To complete this plan, Nestle has partnered with several authorities.

In the US, the company has partnered with SmartLabel transparency which helps to give information about allergens, nutrition, and ingredients. With such dedication and innovation, Nestle is continuously trying to improve the life of people with its products and services. There is no doubt that Nestle is a trendsetter in the relevant field. They just need to improve their technology on a constant basis in order to remain competitive in the market.

PESTLE Analysis of Nestle | Nestle PESTLE Analysis

Legal Factors:

It is really necessary to abide by the legal formalities of the different countries in which Nestle is currently operating. It requires a strong legal team that observes these legalities in every aspect and finds solutions for the company. Basically, these laws are designed for the safety and health of consumers and employees such as labor laws and consumer safety laws. They need to follow all the rules and regulations of countries for smooth and constant growth. On the other hand, it is also essential to watch out for IPO and trademark rules occasionally along with environmental laws.

In case of any breaking rules, the company has to face severe problems in the form of court cases and public trials. They also face criticism for supporting studies for breast milk which is against international and local laws. These kinds of negative things can break the reputation and image of Nestle globally. These things can be threatening for the profitability and market position of Nestle.

PESTLE Analysis of Nestle | Nestle PESTLE Analysis

Environmental Factors:

Nestle is trying to reduce its environmental impact by adopting eco-friendly options. They are reducing the use of plastic in their products and also focusing on creating 100 percent recyclable packaging. This thing really contributes towards the sustainability of and also welcoming for eco-conscious people. In case of any severe changes in environmental laws, the company has to face real problems in its operation. They were suspended by RSPO for the reason that they fail to submit the sustainability report on palm oil. They are also working to reduce its footprint of greenhouse gas emissions.

The company officials are also claiming zero-waste production in their manufacturing plants. They are also planning to develop sustainable goals globally in order to catch the attention of consumers. Recently, they are working on a water efficiency program. In short, they are trying their best to fulfill the environmental laws that can contribute to its success and growth.

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March 17, 2021 0 comment

PESTLE Analysis KFC | KFC PESTLE

PESTLE Analysis of Apple | Apple Pestle Analysis

by Shamsul March 17, 2021

PESTLE Analysis of Apple | Apple Pestle Analysis

PESTLE Analysis of Apple helps to monitor their progress and necessary steps to further progress. Apple is one of the reputed electronics brands in the world. It is a favorite brand of investors due to its high return on investment and strong income growth. The company started its operation as a computer company, but now they are manufacturing a broad range of electronic devices such as smartphones, music players, television sets, and tablets. They also designed their own proprietary software and have a unique operating system. They are also providing information and entertainment services. So, it is the biggest music retailer and smartphone applications. The main attraction of this brand is its uniqueness and effective business model. In terms of profits and growth, it is a leading player in the market.

PESTLE Analysis of Apple | Apple Pestle Analysis

Political Factors:

There is no doubt that Apple is a top player in the relevant industry. In 2015, it had 34.7 billion dollars in stocks. This thing makes a great political impact in terms of taxation.
It is a fact that Apple is heavily reliant on low-cost manufacturing in China. If anything happens to the Chinese economy in terms of political and economic, it creates a bad impact on the manufacturing process of Apple. But, due to political tension between the US and China, impacts the working of Apple.
Apple is trying to find alternatives to manufacturing in China. This thing can cause an increase in the prices of Apple products.
Apple is heavily dependent on the Chinese manufacturing market but certain political unrest can cause a negative impact on the operations of Apple.
Due to anti-Americanism nationalism in China, there is a chance that Apple could decrease its market value.
The close relationship with China in terms of manufacturing. Due to political unrest, it can threaten the working of Apple.
As we know that, Apple is a dominant player in the music field but certain kinds of political pressure can reduce its market share and value.

PESTLE Analysis of Apple | Apple Pestle Analysis

Economic Factors:

Due to rising charges of labor in China, this economic factor can disturb the revenue system of Apple and also results in the increasing cost of products.
The declining income of middle-class people can also create a bad impact on the profitability of Apple. It shrinks the Apple market and market value.
The increasing exchange rate of the dollar can also create some trouble for Apple in specific regions including China and Europe.

PESTLE Analysis of Apple | Apple Pestle Analysis

Social Factors:

Apple has a big opportunity in regions like Africa. They love to use branded products which offers a great opportunity for Apple. They can target these countries in order to enhance their revenue game.
In order to derive sales, Apple can attract younger people who love to use new technologies. This kind of strategy helps the company to enhance its profitability.
The unconstructive criticism against costly and modern products among users in the Europe and US.
The manufacturing plants in China can disappoint the socially-conscious users in terms of quality. This thing limits the sales of Apple.
The strong relation with China can also upset some users and investors in different regions such as Europe and North America. The political unrest with China can also create a bad impact on the sales of Apple.
Apple faces huge criticism from big recording stars which can tarnish Apple’s reputation and image globally.

PESTLE Analysis of Apple | Apple Pestle Analysis

Technological Factors:

There are several big competitors in the electronics market such as Samsung and Google that offer competitive products. Recently, Google has manufactured a payment app like Android Pay which has the same functioning as Apple Pay. This thing erodes the uniqueness of Apple.
Apple’s main revenue generated through specific segments like smartphones and mobile accessories. Its different offerings like Apple TV are not so popular among users.
Different android companies are giving tough competition to Apple. The increase in demand for Android tablets and smartphones continuously threatening the sales of Apple. Moreover, Apple is also facing a reduction in the sales of personal computers.
As compared to android, Apple’s offering in terms of apps is very limited. That’s why most of the users are moving to android smartphones and tablets.
Apple’s system is really vulnerable to cybercriminals which can damage the integrity and reputation of Apple.

PESTLE Analysis of Apple | Apple Pestle Analysis

Legal Factors:

Recently, Apple has entered the extremely regulated financial services through ‘’Apple Pay’’. There is a chance this thing increases the regulations from the government.
By providing financial services, there is a possibility that the company could experience increased levels of lawsuits.
According to media reports, Apple is planning to enter automobile manufacturing. In this way, they have to face regulations and other costs like insurance and court case.
Apple is heavily dependent on its software and music platforms because these sectors are highly profitable. But, this kind of dependence makes the company weak in case of any emergency or incident.

PESTLE Analysis of Apple | Apple Pestle Analysis

Environmental Factors:

It is really a big issue for Apple to dispose of its non-working electronic devices. it is really difficult to dispose of these devices especially those that contain lithium batteries and it requires a huge sum. This thing is really problematic for Apple and they are facing criticism from environmental activists over this problem.
There are some other factors like pollution and waste also affecting the brand’s name. Due to this problem, they have to face higher manufacturing charges and regulations. This thing can break the image of Apple. So it is really important for the company to address these problems on a priority basis.
China is trying to limit fossil fuel and greenhouse gases which directly results in an increase in manufacturing costs due to an increase in electricity rates. This thing can damage the revenue game of Apple.
Due to strict climate change rules, this thing can affect the supply chain network of Apple.
There is a chance that Apple could face higher costs and regulations due to energy use and side-effects from data centers.
Increasing electricity prices in China can also break the infrastructure of Apple.

Conclusion:

With this PESTLE analysis of Apple, it is very clear that Apple is a leading global player in the electronics market. They just need to fix the environmental problems and manufacturing process. The main threat for Apple is political instability between the governments of the US and China. In terms of uniqueness and reputation, Apple is still is number and has a strong consumer base. By adopting new technologies, they can expand into different regions and can easily attract new customers. In short, Apple is doing really well in the relevant industry.

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What is PESTLE Analysis?

PESTLE Analysis of Adidas | Adidas PESTLE

March 17, 2021 0 comment

PESTLE Analysis of Amazon | Amazon Pestle Analysis

by Shamsul March 17, 2021

PESTLE Analysis of Amazon | Amazon Pestle Analysis

Pestle Analysis of Amazon reveals that their performance is based on several factors. It is a big company and holds a major position in the micro-business environment so it is a little tricky to find the exact issues and working of Amazon. PESTLE is a strategic management tool that helps to discover external factors such as political, economic, social, technological, legal, and environmental. With these factors, you can identify the external factors of this e-commerce retailer. No doubt, Amazon is a global giant in the relative industry and enjoys the advantages of high popularity, market reach, and high capitalization. Also, the online industry is highly dynamic and challenging. It is necessary for Amazon to fulfill all the challenges in order to maintain competence and resilience.

The company’s decision-makers can find plenty of opportunities and reduce the risk of threats by utilizing this PESTLE analysis tool. In this way, they can uncover the possibilities of growth and expansion in the global e-commerce business. Moreover, Amazon should give tough competition to its competitors such as Walmart and technology firms such as Google, Microsoft, and Apple. However, Amazon has its own microchips that are used in the cloud infrastructure, which makes Intel a tough competitor. With the business analysis tool, Amazon can find ways of continuous growth. They can also boost the working of its subsidiaries such as Whole Foods Market in different markets.

PESTLE Analysis of Amazon | Amazon Pestle Analysis

Political Factors:

The political influence on Amazon is huge due to its shipment and delivery service. In this section, we will focus on the government policies and their effect on Amazon’s business. Below, we have listed some important political factors that are necessary for the development of this e-commerce firm.

Political firmness of developed countries particularly European countries and the United States of America.
Support from the government for e-commerce business.
Government efforts on cybersecurity.

Political stability is really beneficial for the growth and working of Amazon. According to PESTLE analysis, this thing provides a big opportunity for Amazon to diversify its working in developed countries or regions. The company can diversify its ‘’Brick-and-Mortar’’ operations in the US to set off its e-commerce dealing. On the flip side, the governmental support for an e-commerce business is also giving a wonderful opportunity for Amazon. This kind of support aids the company to make exponential growth in relative markets. However, the same opportunity can threaten the company’s position due to increasing competition in the e-commerce market. There are several big Chinese retail companies that are continuously diversifying their operations in relevant markets. The government’s support for cybersecurity also a big opportunity for e-commerce retailers. Companies can take benefit of this factor in order to expand their options in the related business.

PESTLE Analysis of Amazon | Amazon Pestle Analysis

Economic Factors:

The company is highly dependent on the economic circumstances in which it operates its non-online and online dealings. In this portion of the PESTLE analysis, we will discuss the economic factors that can affect the working and operation of Amazon. The following factors are enough to understand the economic factors of the company:

The economic stability of European countries and the USA.
Rising disposable wages in developing countries.
The prospective economic recession of China.

The economic solidity of different developing countries raises the chance of success for online sectors. According to PESTLE analysis, this thing reduces economic problems in the macro-environment and remote. So, this kind of minimization creates a bundle of growth opportunities for e-commerce businesses. Also, the company has a lot of potential in the developed countries. The rising disposable wages can advance the financial performance of Amazon. Moreover, the prospective economic recession of China can threaten the company’s business. No doubt, China is a big player in the market and can affect the market situation. Further, Amazon’s business strategy can increase the growth chances.

PESTLE Analysis of Amazon | Amazon Pestle Analysis

Social Factors:

Social conditions identify the effect of the latest trends and a socio-cultural change on Amazon’s workings. Amazon is a leading information technology provider in goods and services. Here are some socio-cultural external factors:

Rising wealth inconsistency.
Rising consumerism in developing countries.
Increasing e-commerce buying.

The rising wealth difference between the rich and poor indicates the escalating gap. It is considered a threat again the company. This kind of higher disposable income is favorable for e-commerce companies in terms of revenues. However, the rising consumerism also creates plenty of opportunities for IT services and e-commerce businesses. It increases the potential success of the company and gives a competitive edge over competitors. These factors help the company to diversify its operations in different regions of the world. As the numbers of online purchasers are increasing day by day, this thing results in the increase of revenue of the company. These tech-savvy people love to purchase products online due to specific reasons. In this way, Amazon can enter into different markets and expand its operations in developing countries.

PESTLE Analysis of Amazon | Amazon Pestle Analysis

Technological Factors:

Technological innovation can directly impact the working of Amazon. Basically, it is a two-edged sword that can cause damage if used incorrectly. We have covered the consequences of technological advancement on the macro-environment in the online business. Below, we have mentioned some important technological factors:

Rapid technological advancement.
Increasing competencies in IT.
Increasing numbers of cybercrime.

The rapid change in technology has affected Amazon. It also pressurizes the company to upgrade its system with the latest technology as a big e-commerce retailer. Well, in PESTLE analysis, it is considered as an opportunity. For example, the heavy investment in technology and the IT sector can give a major boost to the company and increase its competitive advantage in the relevant field. In this way, they can protect the company from hackers and compete with new entrants.

It is a big opportunity for Amazon to increase its efficiency in the IT sector. Thus, the betterment of computing technologies can reduce operational costs and multiply online retail productivity. Moreover, the risk of cybercrime can be a big threat for big companies like Amazon. It threatens the customer experience and integrity of Amazon. So, it is imperative to invest in this segment to improve the cybersecurity of the company. They should invest in appropriate technological sectors to retain their position and improving operations. In short, Amazon needs to improve its technology continues to fulfill the requirements of customers in a better way.

PESTLE Analysis of Amazon | Amazon Pestle Analysis

Legal Factors:

It is necessary for Amazon to follow all the legal rules and requirements. It is important for the growth of the company. They determine the working ability and reputation of the company. the following are some important legal external factors:

Increasing production guidelines.
Varying import/export laws.
Increasing environmental protection laws on industries.

The increasing product laws are designed specifically for customer security and protection. This external condition creates opportunities for the company. They can reduce counterfeit sales and products by exploiting these regulations. With strong import and export laws, the company can diversify its growth and sales in different countries. They can expand their operations in different regions due to this kind of regulation. It creates a strong bond between suppliers and sellers. They can also strengthen their brand image and social reputation by addressing increasing environmental protection laws. These factors amplify the business competitiveness in the macro-environment. By utilizing these factors, Amazon can take its operations to success.

PESTLE Analysis of Amazon | Amazon Pestle Analysis

Environmental Factors:

Basically, Amazon is an e-commerce business and it also affects due to certain ecological factors. As the number of eco-friendly people is increasing, this thing can make or break the image of Amazon. Below, some of the essential environmental factors are given:

Increasing interest in environmental campaigns.
Increasing prominence on business sustainability.
The rising popularity of low-carbon practices.

Amazon has the ability to enhance its environmental impact by investing in environmental factors. Certainly, this thing can create a positive impact on the mind of eco-conscious shoppers. They can improve their energy consumption and waste management problems. It provides a great opportunity to improve its sustainability which strengthens the brand image and market position. They can also adopt low-carbon practices which enhance their reputation. They can also use energy-saving strategies which show the concern of Amazon towards climate change. It also creates a good impact on the working and operation of the company.

Recommendations:

There is no doubt that Amazon is a big player in the e-commerce retail market. The company is also giving great competition over its competitors like Walmart. PESTLE analysis of Amazon shows the problems of Amazon and also provides great opportunities for growth. The company has the ability to retain its long-term strategies. The company has big potential in the developing markets for maximum growth and revenue. It is necessary for Amazon to improve its technological system with the latest technology in order to get a competitive edge over rivals. These factors expand the chances for Amazon and also improve the purchasing power of the customers. It is imperative for Amazon to exploit effective strategies in order to fulfill the requirements of consumers and suppliers.

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March 17, 2021 1 comment

What is PESTLE Analysis?

by Shamsul February 26, 2021

What is PESTLE Analysis?

Pestle is also referred to as ‘’PEST’’ analysis which is an important tool to analyze any business. In this analysis, one can analyze the environment in which businesses are operating and also introduce the latest services, products, or projects according to the market situation. PESTLE is a notation and expanded in the given form:

P= Political
E= Economic
S= Social
T= Technological
L= Legal
E= Environmental

You can get a comprehensive insight into any business environment from various directions or angles. With this analysis, one can improve opportunities and reduce the threats for their business. Many market gurus and experts have introduced alternations in this segment, like E= Ethics in order to find the demographic elements of any market or country.

Asking the Appropriate Questions:

It is important to ask some necessary questions before performing this analysis. In this way, you can get an idea about important factors that you need to consider while conducting this analysis. Here are some questions:

What is the political condition of the market or country and how can it influence the market?
What are the widespread economic elements?
Find out the impact of culture on the industry or market.
What kind of technological advancements affect the industry structure?
Find out the current legislation that can affect the market.
What are the environmental effects on the market?

All these questions or concerns are important for any business or industry. With the assistance of these factors, you can get a full market analysis like strategic management. But keep in mind that, these factors change for different businesses and industries. But PESTLE provides a complete view that you need to understand the environment in which businesses are running. In short, we can say that PESTLE is a comprehensive version of SWOT. However, it is a little challenging for some people to understand the comprehensive depth of PESTLE.

Political Factors in PESTLE:

In this sector, you can determine the influence of the government on a specific market or industry. For example, the change in tax regulations or new tax imposition for generating revenues can affect the overall market. This is a pure political factor and also affects the trade tariffs, tax policies, fiscal policy, etc. These factors can heavily influence the market to a large extent.

Economic Factors in PESTLE:

Economic factors describe the performance of the government and its impact on the market. For instance, the price increases in any economy can directly impact the services and products of all the companies which creates a big impact on the economy. Moreover, this thing also changes the purchasing power and habit of customers and also creates a major difference in the supply and demand chain. These factors also contain economic growth patterns, inflation rate, foreign exchange rates, interest rates, etc.

Social Factors in PESTLE:

With the help of this factor, you can determine the social environment of any market. You can also find out the cultural impact, population, demographics, and more with the aid of this factor. A common example of this factor is that the buying trend in Western countries increases during special festivals and the holiday season.

Technological Factors in PESTLE:

It shows the risk of new technologies that can influence the market. New technological advancements can disturb the operations of the market in both favorable and unfavorable forms. It includes automation, R&D, awareness, etc that any market holds.

Legal Factors in PESTLE:

This factor is consists of both internal and external sides. There are plenty of certain laws that can influence the trade and business environment. There are several things in this sector like labor laws, safety standards, consumer laws, etc that can influence the industry.

Environmental Factors in PESTLE:

Environmental factors are very crucial for businesses and industries because they influence the market very strongly. Some of the businesses like agriculture, tourism, farming, etc are totally dependent on environmental factors. It also contains different factors like environmental offsets, climate change, geographical location, weather, and climate. With the support of these factors, you can easily conduct a PESTLE analysis and know each and every factor about business environments, and also create opportunities to increase plans and services.

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February 26, 2021 0 comment

PESTLE Analysis of Starbucks | Starbucks PESTLE

by Shamsul February 26, 2021

PESTLE Analysis of Starbucks | Starbucks PESTLE

In this post, we are going to discuss the Starbucks PESTLE analysis.PESTLE analysis is basically a strategic analysis tool that is really effective to analyze the effect of external problems. Basically, PESTLE analysis is an extended form of ‘’PEST’’ analysis. There are some other types of this analysis tool are PESTEL, STEEPLE, and STEEP. The PESTLE analysis consists of political, economical, social, technological, legal, and environmental factors that help to understand the strategic issues of any company or business.

Starbucks operates in a macroeconomic environment and due to severe economic recession, some companies are struggling badly. Moreover, this kind of recession has changed the purchasing power of the customer. According to recent market research, the consumption of coffee is not reduced despite all the recession. It means that companies can force the consumers to buy these products by providing these products at lower rates. Starbucks also adopting the mobile computing revolution with the collaboration of Apple and also offered discounted coupons. In addition, they are also trying cross-selling and co-branding. In short, Starbucks is trying to take the maximum advantage of Smartphone technology.

Starbucks is also facing different challenges like consumer awareness. Customers in the United States are more concerned about the ethics of the brand they are using. Hence, there are many other factors that are challenging Starbucks. We have organized these problems on the basis of PESTLE factors. In this way, you can understand the factors that impact Starbucks’ business.

PESTLE Analysis of Starbucks | Starbucks PESTLE

Political Factors:

Sourcing the raw material is one of the major political factors. This thing has gained a lot of consideration from the sourcing countries and politicians. Due to these factors, Starbucks wants to stick to environmental and social standards. This thing gives the opportunity Starbucks for fair trade practices. Additionally, they should follow the rules and regulations of the countries from where they purchase raw materials. Due to enhancement in political awareness and activism, it is necessary to follow the proper laws and regulations. The impact of regulatory authority is another major factor. There are several multinational companies that are facing scrutiny in the United States. So, Starbucks should watch the political stability or instability of the country. Here are some other factors that also need your consideration:

Labor laws.
Tax guidelines.

PESTLE Analysis of Starbucks | Starbucks PESTLE

Economic Factors:

The current worldwide economic recession is another major impact for the company. As we mentioned above, these factors can create a negative impact on the profitability of the company. This thing can force the consumers to move towards cheaper products. Moreover, the consumption of coffee is not decreased due to these factors, so this can be a big opportunity for Starbucks.

Furthermore, Starbucks should focus on operational charges and increasing labor. The decrease in profits and the inflationary situation can create a negative impact. Here are some important factors that can impact Starbucks:

Taxation level.
Local currency exchange rates.
The confined economic environment in various markets.

PESTLE Analysis of Starbucks | Starbucks PESTLE

Social Factors:

There is a problem quality problem in selling cheap products. This thing is not acceptable for consumers at any cost. It is a major social challenge for Starbucks. It can attract lower-income people but it might break the base consumers of Starbucks. The eco-conscious and ethical users are also concerned about the practices of Starbucks. They worry about the environmental and social norms of the company. Starbucks should focus on Gen-Z and millennials in order to increase its profitability. Below, some of the social factors that Starbucks should consider:

Consumer choices.
A major change in the lifestyle of the people.
Educated people in the markets.
Changing consumer values.
Change in work pattern.
Changing family patterns in Europe and the US.

PESTLE Analysis of Starbucks | Starbucks PESTLE

Technological Factors:

Due to the immense revolution in mobile technology, Starbucks has a good opportunity to exploit these technologies. They recently partnered with Apple in order to give app-based discount promotions. What is more? The company also provides Wi-Fi facilities in its outlets. As most of the generation is tech-savvy, so this factor can play an important role in the popularity of Starbucks. So, you can browse sites and upload pictures while enjoying Starbucks coffee. This thing adds some value to the brand and improves the customer experience. The company is also using mobile payment methods and they successfully tried this service in different locations of the United States. Here are some technological factors to focus on:

The emergence of new technology.
Biotechnology.
Advancements in agriculture.

PESTLE Analysis of Starbucks | Starbucks PESTLE

Legal Factors:

It is important for Starbucks to follow all the rules and regulations of sourcing markets and domestic markets. They should also focus on caffeine consumption and production. In this matter, they should learn the regulatory laws from the health authorities. Ahead, some factors that can impact Starbucks:

Strict trade and customs laws.
Licensing regulations.

PESTLE Analysis of Starbucks | Starbucks PESTLE

Environmental Factors:

There are several business practices of Starbucks concern global advocacy groups and activists. These activists are not happy with the business practices of Starbucks, so they should focus on these problems in order to retain the customer’s trust. Here are some factors that Starbucks should consider:

Strict environmental rules and regulations.
Ecological disaster in regions which produce coffee beans.
Different environmental problems and global warming.

PESTLE Analysis of Starbucks | Starbucks PESTLE

Conclusion:

With the PESTLE analysis of Starbucks, we can prove that Starbucks is really in a good position and a stable company in the competitive market. The main strength of this company is its beverage and food industry. This thing shows that the consumption of these products will never reduce. But, the recession is a major challenge in the entire process because it can change the purchasing power of the customers. So, Starbucks should revise its pricing strategy and focus to deliver reasonable products. It is one of the most important factors that help Starbucks to retain its consumer base. In this way, they can attract new consumers and win the trust of the customers. It means Starbucks has plenty of opportunities to expand its business in terms of popularity and profitability.

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February 26, 2021 0 comment

PESTLE Analysis Coca Cola | Coca Cola PESTLE

by Shamsul February 14, 2021

PESTLE Analysis Coca Cola | Coca Cola PESTLE

Coca Cola is a well-liked soft drink company and caters to consumers around the globe. They follow firm laws and regulations to supply their products to consumers. They use innovative technology and understand the consumer’s needs. If you want to know more about Coca Cola then you should read this PESTLE analysis of Coca Cola. In this Coca Cola PESTLE analysis, we will discuss the internal and external strategic factors of Coca Cola and its working. So, are you ready? Let’s start.

PESTLE Analysis Coca Cola | Coca Cola PESTLE

Political Factors:

Coca Cola products are based on the authorization of the Food and Drug Administration (FDA). It is necessary for products to fulfill the requirements or regulations of the FDA before placing on the shelves of the stores. The change in established laws can affect the distributing process of Coca Cola. There are some other factors that can affect the working of Coca Cola:

Taxes
Accounting
Labor laws.
Internal marketing.

PESTLE Analysis Coca Cola | Coca Cola PESTLE

Economical Factors:

There is no doubt Coca Cola is a leading company in the beverage market and supplies its products to hundreds of locations of the world. As every country has its own rules, customs, desires, cultures, and tastes, so it’s a big challenge for Coca Cola to meet the requirements. But, Coca Cola understands the needs and requirements of their customers that’s why they are creating new flavors and beverages to fulfill the desires of users. The current market value of Coca Cola is more than 80 billion dollars. The major portion of its income (nearly 70-percent) is generated from regions outside America. But now, people are moving towards healthy drinks, and Coca Cola is also adopting this way to fulfill the needs of consumers.

PESTLE Analysis Coca Cola | Coca Cola PESTLE

Social Factors:

Coca Cola dispenses the greater part of its beverages in cultured regions. They do not only offer different products but also fulfilling the requirements of these consumers. They introduced 30 different flavors in Japan to attract Japanese customers. The company is also trying the same method in the Chinese market. But, the number of health-conscious people is increasing in the United States, so they are offering diet drinks. Coca Cola can also introduce other healthy products in the American market to fulfill the needs of consumers.

PESTLE Analysis Coca Cola | Coca Cola PESTLE

Technological Factors:

Coca-Cola is using innovative machinery in its manufacturing process which results in a higher and better quantity of products. They are considered as a top innovative company in terms of machinery and quality. Moreover, Coca Cola has used a strong marketing strategy with the help of social media. So, they can directly connect with consumers through digital ads. Recently, Coca Cola launched the ‘’name campaign’’ which results in an increase in its sales and profits. People love to take their photos with names on the bottles which increases the popularity of Coca Cola. This kind of marketing campaign can give a major boost to this company.

PESTLE Analysis Coca Cola | Coca Cola PESTLE

Legal Factors:

Coca Cola has designed a patent that protects its past and future products. Moreover, they also hold all rights connected to their working. Well, there are very few legal factors of Coca Cola but due to the global brand, they should follow the rules and regulations of each country for smooth and easy distribution of their products.

PESTLE Analysis Coca Cola | Coca Cola PESTLE

Environmental Factors:

Coca Cola is facing major challenges due to water accessibility. Water is an important item for these drinks, but climate change has threatened the company’s sustainability. There are some other companies like Pepsi that are also facing similar problems. Basically, Coca Cola is a soft drink company, so water accessibility can create issues in the future and they will experience huge losses. Also, Coca Cola follows all the environmental laws in the manufacturing of their products. In case of any mistake, they will face severe consequences. Additionally, Coca Cola is trying to target humid regions to sell its drinks because in these regions the demand for these drinks is very huge. In short, Coca Cola is giving tough competition to its competitors in terms of sales and reach.

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February 14, 2021 0 comment

PESTLE Analysis of Nike | Nike PESTLE

by Shamsul February 14, 2021

PESTLE Analysis of Nike | Nike PESTLE

Nike, Inc. is an American-based international corporation. They provide functional and stylish sportswear. It was founded in 1964 and aims to deliver innovation and inspiration to every athlete. There is no doubt that it is the largest sportswear and accessory company in the world. Nike has established a strong position in the competitive market. Today, we will discuss the PESTLE Analysis of Nike, the potential future, and position of Nike through a business analysis tool PESTLE. It gives a strong picture of different factors like political, economic, social, technological, legal, and environmental. Keep scrolling to find out these factors right now.

PESTLE Analysis of Nike | Nike PESTLE

Political Factors:

These factors provide real support and assistance to a company. Political factors can make or break the reputation of any company. In this process, the most important factor is that how you produce your goods. Moreover, it also depends on your sales and sales strategy. To be very honest, it looks a little insignificant but these factors predict your survivability. Some important political factors of Nike have given:

As we know that, Nike is a US-based company which is really good for the growth of the company. The American economy is stable which gives a big opportunity to companies like Nike to grow more. It features international tax agreements and low-interest rates.
For companies that produce and sell goods, influenced due to the changes in manufacturing laws and tax regulations.
Sometimes political instability makes the customs process a little difficult and reduces the supply of imports and export. As Nike is a transnational corporation, so these factors can impact the growth and development of the company.

PESTLE Analysis of Nike | Nike PESTLE

Economic Factors:

In the activewear market, Nike is a respected name. Due to this reason, the company is less susceptible to several economic factors. Here are some economic factors of Nike given:

A sudden market crash can create a bad impact on the company and other big companies. Economic recession can change the purchasing power of customers and they prefer more cheap products. In this situation, it is really challenging for a global company to survive. So, in these situations, Nike should focus on a decent level of quality which helps to reduce the manufacturing costs so that they can cater to the customers.
For a longer period of time, Nike was dependent on the different Eastern countries due to the low cost of labor. But, this process is ended which results in the higher prices of Nike’s products.
Nike has a wonderful opportunity to target new emerging markets in order to sell their products. This thing does not only increase its popularity but also creates various opportunities to increase its market share. They just need to improve their resources and marketing strategy in order to attract new clients.

PESTLE Analysis of Nike | Nike PESTLE

Social Factors:

It is necessary for big companies to maintain their social status which creates a good impact on the mind of users. An excellent social reputation makes you a number one brand in the world. Here are some social factors are given:

As the number of health-conscious people are on increase day by day and people adopting better lifestyles, so there is a maximum chance that these people will definitely buy sports apparel and products to make their lifestyle better. It creates a big opportunity for Nike.
Recently, Nike faces huge backlash due to its doubtful production systems. They face severe criticism over social media for its production processes.

PESTLE Analysis of Nike | Nike PESTLE

Technological Factors:

With the latest technology, a company can grow constructively and find multiple ways to expand its business. Nike can introduce innovation in different sectors such as manufacturing processes and customer service to make things better and smooth. Below, some of the technological factors are given that can affect Nike:

It is really easy to market new products on social media. Now, you can share the news with your audience in just a matter of seconds with the assistance of social media. Nike has excellently exploited social media for promoting their brand name and products. But don’t forget that it is a double-edged sword, so use this platform correctly and properly.
Nike also has an opportunity to utilize valuable data based on metrics, thanks to technological innovations that allow the company to maximize profits and reduce the risks.

PESTLE Analysis of Nike | Nike PESTLE

Legal Factors:

Some people coupled the legal factors with political factors in PEST analysis, but both are different in PESTLE analysis. There are very few legal factors that affect Nike, but we have mentioned some of the important legal factors below:

Like several big companies, Nike also dodges considerable amounts of tax in recent years. This kind of thing can create a big problem for the company.
Moreover, Nike also faces legal consequences due to its dubious marketing practices. The major issue in this problem is false discounts. These things can badly impact the company’s image and reputation in the eyes of the audience.

PESTLE Analysis of Nike | Nike PESTLE

Environmental Factors:

Due to the increasing number of health-conscious and eco-friendly people, green practices are essential for any company. There are some environmental factors that can affect Nike’s manufacturing processes:

There are several factories of Nike that directly harming the environment. They release a significant amount of air pollution and also polluting rivers with chemicals used in the manufacturing process.
But, Nike has promised to reduce its environmental waste by changing its current manufacturing practices. This thing gives peace of mind to eco-friendly people. They can catch the attention of new customers by making nature-friendly products and reducing their environmental waste.

PESTLE Analysis of Nike | Nike PESTLE

Conclusion:

Well, this is a complete PESTLE analysis of Nike. There is no doubt that Nike is a strong player in the sportswear industry and very popular among people due to its high-quality products. In terms of profits and market reach, the company is doing really well. They just need to pay attention to its unethical manufacturing processes and pricing strategy. So, we can say that there are bundles of opportunities for Nike to get a competitive edge over its competitors in the form of revenue and growth.

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