PESTLE is a series of acronyms used in business and market planning which reviews the broader forces known as the ‘Macro Environment’ that can shape a business

So what does PESTLE stand for

These are the contexts that a business should assess itself against to review competitors, markets, and the situation in which an organization finds itself.

POLITICAL: (What is the political situation of the country and how can it affect the industry?)
THE major factor we face in any country is the political aspect. Eg: Government policy, political stability or instability, bureaucracy, corruption, foreign trade policy, tax policy, trade restrictions, labour/environmental/copyright/consumer protection laws, competition regulation, funding grants & initiatives.

So what should you consider?

• International and local laws (including GDPR)
• Preferred and, potentially, banned platforms
• Why the political climate of a country may prevent your brand’s success

ECONOMIC: (What are the prevalent economic factors?)
Some products are suited only in certain countries while in others however we may brand it,it tends to be failure.In India,the majority of the population lives in the economy zone and so products sold here must be affordable by them.Eventhough many bigbrands are present,it is the small brand that lead the market.”ECONOMICALLY VIABLE” is India’s slogan

What you should consider:

• Competitor prices and product/service offering
• Primary/secondary/tertiary target audiences and their individual economic situations
• Historical sales success and promotional offers that can push sales during expected downtimes

SOCIOLOGICAL: (How much importance does culture has in the market and what are its determinants?)
India is a country rich in its culture and hertitage.There certain religious and cultural aspects which will not be tolerated and when these sentiments are affected it leads to the downfall. Eg: The meat industry in India aligning to Cow and Pig.There are selling points too through it as usage of 100% vegan or ayurvedic.So understanding the society matters.When considering internet and usage,viewer discretion websites and the cost matters.

What you should consider:

• The beliefs, customs, and standards held by customers who may be of a different faith, race, gender, and socio-economic background to your average customer
• Internet usage habits (which can differ greatly on customer age)
• Access to the internet (which can differ between countries and people of lower levels of income)

TECHNOLOGICAL: (What technological innovations are likely to pop up and affect the market structure?)
Awareness to innovations and the latest trends in technology may affect the market favourably or unfavourably.A company must assess how products of similar trend was received and what they might provide to be better than the competitor. Let us consider the website of companies showcasing their products and itself.Things like feasibility,user behaviour,popularity and change must be looked into. Social media is a large component of this, as the demographics of available users or their common behavior might change.

What you should consider:

• Screen size and where the internet is accessed
• How you can make your user journeys easier
• Whether new technology makes elements of your marketing mix redundant

LEGAL: (Are there any current legislations that regulate the industry or can there be any change in the legislations for the industry?)
A legal oversight can not only affect your bottom line, but also your brand’s perception. The more public of a mistake, the more your brand can be hurt, which risks alienating a lucrative target demographic.

For example, when setting up social media pages, you may need to adapt to meet different laws in different places. If you’re setting up a Facebook page to promote alcoholic drinks, it’s essential to age-gate and country-gate; ensuring your page is only available to those aged over 18 and those in India. If you ignore this, you could be breaking laws in other jurisdictions and this could have a negative impact on your business.

What you should consider:

• Product placement and promotional content
• Copyright infringement
• Data protection

ENVIRONMENTAL: (What are the environmental concerns for the industry?)
This is crucial for certain industries like Agriculture,Tourism and Farming. Factors of a business environmental analysis include but are not limited to climate, weather, geographical location, global changes in climate, environmental offsets etc

What you should consider:

• How does our physical environment affect us and vice versa?
• What are the effects of climate, weather or geographical location?
• Are we prepared for future environmental targets

Further Reading:

• https://www.toppr.com/guides/business-management-entrepreneurship/entrepreneurship-creativity-and-innovation/pestle-analysis/
• https://pestleanalysis.com/what-is-pestle-analysis/
• https://www.smartinsights.com/marketing-planning/marketing-models/pestle-analysis-model/
• https://www.groupmap.com/map-templates/pestle-analysis/#1495520565504-1eea2e40-1e
• https://www.batonglobal.com/post/introduction-to-pestle-analysis-and-why-a-systemic-approach-is-best
• https://www.powernoodle.com/models-article/pestle-analysis