The PESTLE Analysis is a popular framework used by strategists to explore the marketplace and environment in which they currently operate or plan on entering in the future.
The package
The case
Marketers can struggle to gain a complete picture of the business environment in which they offer their goods and services. The PESTLE analysis framework offers a more comprehensive view of a market than many similar approaches. While it's true that different business strategies will be influenced by the factors considered in a PESTLE Analysis to different degrees, all businesses are affected at least in some way by the elements featured here. Understanding and tracking your business environment is vital to properly developing and positioning new and existing products.
The mechanics
In a PESTLE Analysis, you evaluate the business enviroment focusing on a number of factors: Politics, Economics, Social Trends, Technological Changes, Legal Concerns, and the Environment (creating the PESTLE acronym). Typically, marketers create a document that lists all the PESTLE factors and then they create a list of all the ways each factor might impact their business. To make the analysis more comprehensive, factors can be considered in the current timeframe, and then projected out to any number of years, especially when predictive demographic or political data is available. By recognizing trends and shifting realities in the business environment, you plan a business strategy more-likely to find success.
The purpose
What is the goal of the model?
The goal of the PESTLE Analysis is to create a comprehensive view of all the factors in the business environment that impact our current or future goods and services.
What people say
Richard Cobie, CEOReviewed on 15 July 2022
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Franz Hellstrom, Head of CultureReviewed on 2 Aug 2022
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I really enjoyed the whole book, but mostly the culture chapter, mainly because I always failed to acknowledge its major role in favouring or inhibiting business growth. Loved the graphics that helped connect all the dots in a visually appealing (and way easier) way.
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We’been willing to innovate our business for some years now, but then we always got stuck before we even started, because basically we had no idea where to start…This book helped us do just that: find the right starting point with guiding questions and an incredibly comprehensive innovation overview.
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