If you have enrolled in a management course, then during your period of study, your professors will definitely ask you to do a PESTLE analysis of a reputed company. Do you know what PESTLE analysis means? Well, by exploring a few PESTLE analysis examples, you can learn about it and polish your skills. So, especially, to help you understand the concept of PESTLE analysis better, here in this blog post, we have shared the five best and most practical pestle analysis examples.
What is Pestle Analysis?
Pestle analysis is a significant part of marketing research principles that serve as a tool for any organization. Moreover, it explores the environment in which companies operate and identifies the suitability of the market for introducing new products. Let’s explore the expanded form of PESTLE analysis below:
P- Political
E- Economical
S- Social
T- Technological
L- Legal
E- Environmental
Understand How to Perform PESTLE Analysis
Are you unsure how to do a PESTLE analysis? If yes, then make sure to follow these steps to complete your PESTLE analysis successfully
- Determine the research scope that includes both current and potential future scenarios.
- Choose who will gather the information and how.
- Locate relevant sources of information
- Collect the information. Organize the gathered information correctly so that it can be accessed again.
- Describe what you found. Carefully analyze the information.
- List the items and rank them according to significance, with the most important going first and the least important coming last.
- Determine your options for addressing the problems.
- Create a document for discussion that all stakeholders can access.
- Talk over the results with the stakeholders.
- Explain the plan and decide what steps to take after reviewing the information.
Now that you have learned the concept, let’s explore different pestle analysis examples that might help you understand better.
PESTLE Analysis Examples of Top Companies
Subsequently, we have selected a few companies on which we will conduct pestle analysis and thereby explain to you the whole process.
Discover here, some practical examples of pestle analysis.
Pestle Analysis Example of Nike
Let’s first explore the background of the company before we consider the pestle analysis example.
- Nike Corporation is a US-based multinational company. To illustrate, it designs, develops as well and sells footwear, clothing, and other services.
- Indeed, Nike is the leading brand as far as sports shoe and apparel manufacturing is concerned.
Now, let’s do the Pestle analysis of Nike:
1. Political
- Firstly, the Nike Corporation ought to consider the taxation and manufacturing rules of any country they choose to expand.
- Secondly, it requires adhering to the import and export laws of the country, where they choose to launch their products.
2. Economical
- Subsequently, the Nike Corporation ought to target customers who have good buying power.
- Perhaps, developing countries serve as a great opportunity for the company.
3. Social
- Firstly, the company ought to target health-conscious people.
- Secondly, shoes and apparel are designed for sports lovers and health-conscious people.
4. Technological
- Most importantly, the Nike Corporation makes use of the best technology.
- Perhaps, continuous technological changes will bring threats as well as opportunities for the company.
5. Legal
- Simultaneously, the design copyrights of shoes and apparel Nike needs consideration.
- Furthermore, the Nike Corporation needs to adhere to health and safety protocols.
6. Environmental
- Most significantly, the Nike Corporation ought to manufacture environmentally friendly products to demonstrate their love and care towards the environment.
Pestle Analysis Example of Adidas
Adidas is a Germany-based company that deals in sports apparel as well as shoes. Moreover, the company’s name was inspired by its founder Adolf Hassler. Certainly, the company is performing well currently, despite different economic issues of various economies. Let’s look at the example below:
1. Political
- Firstly, Adidas focuses on different political conditions, including wars, terrorism, and nationalism.
- Secondly, tax systems change each time the political party changes, hence it needs attention.
2. Economical
- Subsequently, the buying power of the people needs consideration.
- Simultaneously, per capita income, inflation, taxation, and unemployment create an impact on the company’s profit.
3. Social
- Specifically, the company’s products and services meet the recent trends of society.
- Also, it’s appropriately focused on athletic and sporty customers.
- Finally, Adidas ought to promote its products and services in Islamic nations.
4. Technological
- Firstly, Adidas makes use of its technology for manufacturing its products.
- Secondly, the company is making good use of its online sites to sell its products and services.
5. Legal
- Most importantly, Adidas ought to ensure not get into any legal troubles about its business.
6. Environmental
- Firstly, the Adidas Company manufactures sustainable products.
- Secondly, it keeps a regulation on the volatile and various organic emissions as well as compounds.
Finally, you may conclude that Adidas is a popular brand and it’s currently performing well in every marketing aspect.
Pestle Analysis Example of Coca-Cola
Let’s now explore the pestle analysis example of The Coca-Cola Company and understand the right way to execute it. However, let’s first understand a little bit about the background of the company as this might help us in the analysis.
To clarify, Coca-Cola is a popular soft drink brand that offers a variety of products to its customers worldwide. Also, the company’s product is known to meet the needs and requirements of the customers.
1. Political
- Firstly, Coca-Cola ought to adhere to the FDA rules and offer the right beverages to its customers.
- Secondly, accounting, labor, and internal marketing legislations need strict adherence.
2. Economical
- Mostly, the company is known to understand the tastes and preferences of its customers.
- Certainly, the company makes most of its income from the sales of soft drinks.
- Undoubtedly, Coca-Cola ought to focus on the promotion of soft drinks.
3. Social
- Firstly, the company has introduced healthy drinks in the United States.
- Secondly, Coca-Cola ought to do the same in other countries like Japan and China.
4. Technological
- Most importantly, the company has made use of high technologies to manufacture good products in a short time.
- Also, Coca-Cola makes effective use of social media to promote its products and services.
5. Legal
- Specifically, Coca-Cola has shown great performance and adhered to all the rights of its business.
6. Environmental
- Perhaps, the Coca-Cola Company needs to operate in areas where there isn’t any water shortage.
Hence, consider concluding that Coca-Cola is one of the most popular soft drink brands in the world. Yet it needs to envelop the customers who seem to have more interest in purchasing healthy drinks.
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Pestle Analysis Example of Apple
Certainly, Apple is a popular brand in the world, which deals in PCs, tablets, smartphones, television, and music players. Though it’s a costly brand, customers prefer it as they might want to add luxury to their life. Let’s now explore the Pestle Analysis example of the Apple Company and understand it better.
1 . Political
- Since Apple operates in China, the operational issues between the US and China might impact the company’s operations.
- Perhaps, if Apple operates in any other country, it will prove expensive for them.
2. Economical
- Unfortunately, the manufacturing cost of Apple’s products might rise, if China increases its labor cost.
- Moreover, a decrease in middle-class income might negatively impact Apple’s market.
3. Social
- Firstly, Apple ought to explore its success in the African regions as well.
- Secondly, Black Americans don’t favor Apple, because of its expensive products.
4. Technological
- Perhaps, the ever-rising use of smartphones and tablets will decrease the demand for Apple’s products.
- Unfortunately, Apple products have access to less security.
5. Legal-
- Maybe, Apple will start its automobile business. Hence, their insurance cost, regulatory costs, and legal procedures might also increase.
6. Environmental
- Mostly, the disposal of non-working electronic devices serves as the biggest environmental threat for Apple.
- Subsequently, lithium battery disposal also costs high for the company.
Hence, Apple has proven as a great company, despite the different challenges it needs to face.
Pestle Analysis Example of Uber
As we all know, Uber is a fast-growing taxi service provider in the world. Also, people enjoy its features like easy access through mobile apps and taxi sharing. Yet, the company is facing minimum wage issues and even if it’s banned, it will not have any benefit. So, let’s check out the pestle analysis below and understand how to conduct pestle analysis efficiently.
1. Political
- Firstly, Uber needs to clarify its stand on driver’s insurance.
- Secondly, the company ought to adhere to the minimum wage rules.
- Thirdly, Uber needs to handle ban issues in various countries.
2. Economical
- Undoubtedly, Uber is simple to access.
- Certainly, this tax service is affordable.
- Also, it provides job opportunities, however, the prospects are not expensive.
3. Social
- Fortunately, Uber provides user-friendly services and fast pick-up for customers.
- Generally, it offers a better riding experience as compared to taxis.
4. Technological
- Firstly, Uber provides an outstanding mobile app for customers.
- Secondly, Uber makes use of social media and other electronic media for promotional activities.
5. Legal
- Mostly, Uber needs to prevent its ban in different countries.
- Also, the company needs to adhere to labor and employee safety laws.
- Furthermore, copyright law needs strict consideration by Uber.
6. Environmental
- Firstly, fuel usage might increase.
- Secondly, traffic congestion also poses a major drawback.
Though Uber is the fastest-growing taxi service, still it creates immense controversies for the company.
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Pestle Analysis Example of Amazon
Amazon.com, Inc. stands as one of the most popular and loved e-commerce brands in the world. It is an American multinational technology company that focuses on e-commerce, online advertising, cloud computing, artificial intelligence, and digital streaming. It offers a pool of options for garments, books, décor pieces, gadgets, equipment, etc to purchase. People from all countries can use Amazon for online shopping via their computers and Android- and/or iOS-supported smartphones. Let’s conduct a pestle analysis of Amazon to get an idea of the factors influencing its operations and profitability.
1. Political
- Amazon needs to abide by the political and legal regulations of the countries it operates in.
- The political stability of a country impacts its operations in a positive manner.
- Government relations on e-commerce businesses impact its operations.
- Governmental support for e-commerce and increasing governmental efforts on cyber-security act as opportunities
2. Economical
- The economic stability of developed nations, especially the U.S. and European nations helped Amazon to expand and operate successfully.
- The potential economic recession of China threatens Amazon
- Increasing disposable incomes in developing countries creates an opportunity for the company
3. Social
- Increasing disparity in income and wealth threatens Amazon
- Increasing consumerism in developed and developing countries.
- Customers increasing preference for online shopping provides an opportunity for Amazon to expand faster.
4. Technological
- Rapid technological obsolescence in many countries makes Amazon invent new products and services continuously
- Increasing efficiencies of IT resources create an opportunity.
- The growing rate of cybercrime affects Amazon’s business operations.
5. Legal
- Increasing product regulations in different countries.
- Modifications in import and export regulations help Amazon expand its global operations
- Rising regulations for environmental protection on businesses help Amazon to develop appropriate corporate social responsibility policies.
6. Environmental
- Rising emphasis on sustainability can increase Amazon’s overall costs of business operations.
- The increasing popularity of low-carbon lifestyles creates a potential for growth in online shopping.
Based on the above analysis, it can be stated that Amazon operates successfully for has lots of opportunities despite some challenges/threats.
Pestle Analysis Example of Walmart
Walmart, Inc. is one of the most popular department stores and online retailers in the world. It is highly popular because of the quality of its products and services and customer-friendly pre-and post-sales services. It was founded in 1962 and now operates through thousands of stores located within the United States and the rest of the world.
1. Political
- Political stability helps Walmart to operate smoothly with global suppliers and manufacturers
- Political support for globalization helps it expand
- Government policies on increasing wages can be a threat to the company
2. Economical
- Stability of major economies
- Continuous economic growth of the countries it operates from and other developing nations increases demand for retail products
- Higher interest rates and/or taxes can affect Walmart’s potential revenue
3. Social
- Enhanced consumer lifestyle and dependence on online shopping help Walmart to boost its operations as an online retailer
- Cultural diversity trend is an opportunity for Walmart to increase offerings
- Urban migration is also an opportunity to exploit increasing consumer demand in cities and surrounding areas
4. Technological
- Increasing business automation helps Walmart boost its online presence
- Online marketing and online selling increase its revenues
- Digital technologies and the online aspect of shipping allow it to reach more people.
5. Legal
- Tax reform is a potential threat if it leads to higher tax rates
- Food safety regulations act as an opportunity for Walmart to improve quality standards
- HR management practices of Walmart can help it exploit opportunities concerning employment regulations.
6. Environmental
- The business sustainability trend is an opportunity for Walmart to improve operational efficiency
- Improved policies and standards on products sold at its retail stores strengthen it to address ecological factors.
The above analysis shows that Walmart operates successfully despite facing some challenges/threats.
Pestle Analysis Example of Woolworths Group
Woolworths is an Australian chain of supermarkets and grocery stores operating since its foundation in 1924. It is the biggest supermarket chain in Australia with a market share of 33% as of 2019. It operates as an online shop for homeware, fashion, food, beauty, and a large range of groceries.
1. Political
- Political stability helps Woolworths to operate in a hassle-free manner
- Corruption in the levels of regulation in the Food & Staples Retailing sector can affect its operations
2. Economical
- The economic growth of countries helps them expand
- Inflation and increasing interest rates affect Woolworths’ operations
- Woolworths is able to manage the increased cost of inputs and increased financial burdens
3. Social
- Demographics and skill level of the population help it get skilled staff
- Customers’ growing health and environmental consciousness enables it to develop unique sustainable products
4. Technological
- Recent technological developments by Woolworths’ competitors threaten it
- Growing technological integration helps it enhance product offering and service
- Continuous technological transformation helps it to provide better quality customer service
5. Legal
- Anti-trust laws in the Food & Staples Retailing industry and overall in the country impact its operations positively
- Consumer protection and e-commerce laws allow it to avoid legal proceedings and penalties
6. Environmental
- Climate change affects its operations
- Waste management in Food & Staples Retailing sectors helps Woolworths to comply with government regulations related to environmental protection
The above analysis reflects that Woolworths operates successfully for has lots of opportunities despite some external threats.
Pestle Analysis Example of eBay
eBay Inc. is a major player in the global e-commerce market, specializing in online retail/auction marketplace, classified listings, and ticket exchange services. The company’s success is a result of strategies that solve issues associated with external factors in the industry environment, such as the opportunities and threats shown in this PESTEL/PESTLE analysis of eBay Inc.
1. Political
- Governmental support for e-commerce provides it an opportunity to operate successfully
- Governmental support for IT infrastructure development is an opportunity for eBay
- Stricter anti-trust policies are threats to the company
2. Economical
- Rapid economic growth of developing nations creates opportunities for eBay to expand
- Rising disposable incomes of people creating demand to meet
- Economic stability in developed countries is also an opportunity for eBay
3. Social
- The rising online activity of customers increases opportunities for eBay to connect with online users worldwide
- Changing preference for convenience helped eBay to increase its sales
- Rising demand for high-quality service guides eBay to improve its online security and safety
4. Technological
- Rising mobile device usage is an opportunity for eBay
- Increasing competition through technological innovation
- Developments in money transfer technology help eBay to provide greater ease to customers related to online payments
5. Legal
- Rising e-commerce regulation threatens eBay
- Improving regulatory support for the globalization of markets is an opportunity for the company
- Increasing regulatory support for international transportation enables it to expand
6. Environmental
- Rising interest in environmental conservation is an opportunity for eBay
- Business sustainability trends help it become more sustainable
- Increasing the availability of renewable energy helps the company’s strategic management mitigate environmental challenges.
Based on the above analysis, it can be stated that eBay operates successfully for having lots of opportunities despite some challenges/threats.
Pestle Analysis Example of BHP Billiton Limited
BHP Billiton Limited is a diversified natural resources company from Australia that has operated since its establishment in 1885. The Company operates nine customer sector groups (CSGs), such as petroleum, aluminum, and base metals. It operates in a dynamic environment where it is influenced by – an increasing regulatory framework for environmental factors, government decisions, and technological changes, collective social trends, increasing environmental activism among consumers, regulatory framework, consumer spending behavior, and an ever-evolving legal system.
1. Political
- BHP is actively present and is experiencing some political instability due to internal and external conflicts
- Uncertainty in the political environment makes BHR adjust to the changes in government policies and regulation
- It gets economic freedom offered by the democratic governance system
2. Economical
- The economic growth rate of the countries helps them in international expansion
- The rising inflation rate can hurt the revenue growth of BHP
- Fluctuations in the exchange rate can affect BHP’s profitability
3. Social
- Higher ethnocentrism can make BHP face a challenging environment while operating in the international markets
- High population growth and a rising proportion of the young population segment is an opportunity for BHP to increase its exposure and sales
4. Technological
- Technological innovation positively affects BHP
- Technological developments of competitors threaten the company
5. Legal
- Stringent environmental regulations in many countries pressure BHP to reduce environmental harm
- Renewable technologies help it reduce its dependence on natural resources
6. Environmental
- BHP can benefit from sustainability trends and use them to reduce environmental costs
- Changing weather conditions can affect BHP’s global operations.
Considering the above analysis, it can be said that BHP faces some threats while operating but successfully deals with all to operate smoothly.
Pestle Analysis Example of H&M
H&M was founded in Sweden in 1947 and offers affordable, trendy, fashionable clothing and accessories catering to various styles and preferences. The company operates under multiple brands, including H&M, Weekday, COS, Monki, Other Stories, H&M Home, ARKET, and Afound. Every single brand targets different customer segments and price points, allowing the company to appeal to a wide range of consumers.
1. Political
- H&M operates in various countries that have different policies
- The political stability of developed nations helps them to operate smoothly
- Government incentives/initiatives in the retail and fashion industry can benefit H&M
2. Economical
- Stable economic condition and growth rate helps H&M to operate
- Inflation can increase the business costs of H&M
- High unemployment rates can reduce consumer spending power and reduce H&M’s sales
3. Social
- Customers’ changing preferences affect its global operations
- Diversity and inclusion provide H&M an opportunity to meet the diverse demand
4. Technological
- Advances in supply chain technology help H&M to improve efficiency
- Data analytics provides valuable insights into consumer behavior, preferences, and trends to redesign products
- AI, VR, and ML help it to integrate with technologies to enhance operations
5. Legal
- Employment laws help H&M to act in compliance with laws
- Intellectual property laws protect its innovations
- Data protection laws help it handle customer data in compliance with laws
6. Environmental
- Sustainability concern helps H&M to reduce carbon emissions
- Climate changes negatively impact H&M’s transportation and logistics
Based on the aforementioned analysis, it is found that H&M operates smoothly by using opportunities and addressing threats.
Pestle Analysis Example of Tesla
Tesla, Inc., founded in 2003, is a pioneering force in both the automobile and sustainable energy industries. The mission of the company is to accelerate the global transition to sustainable energy. Tesla is well-known for its innovative electric vehicles (EVs). In addition, the company has added solar energy products and energy storage solutions to its lineup. Using cutting-edge technology and a resolute dedication to environmental conscience, Tesla redefines traditional transportation with a product selection that includes several models.
1. Political
- The ecological element of Tesla Inc. has a direct impact on its political and economic components. Tesla automobiles, which run on electricity rather than fuel, are environmentally beneficial. Thus, customers may be eligible for a particular tax credit for driving an electric vehicle.
- Furthermore, because the government incentive pushed for environmental consciousness, its financial performance has improved.
- Political considerations have aided Tesla’s development and secured its international expansion.
2. Economical
- The car is mostly classified as luxury. The sale of electric vehicles has benefited the worldwide economy. The automotive industry saw tremendous expansion globally in the years 2016–2017. The potential to produce affordable cars in the future has been created by the rise in sales.
- However, the growth rate is determined by the country’s local economy. Creating affordable cars for average consumers will benefit the corporation in the long run in two ways. First and foremost, compete with other businesses in the industry. Second, to accommodate the market’s increasing demand for electric vehicles. While the lowering cost of renewable energy benefits Tesla’s expansion, economic uncertainty remains a huge danger.
3. Social
- Tesla automobiles are unique. They have helped people’s perceptions of elegant electric automobiles to become more widespread. In addition to maximizing profit for the company, this section of the research looks at how investors, customers, and staff perceive a location while taking sociocultural factors into account.
- People’s environmental consciousness and the widespread use of renewable energy sources are both beneficial to Tesla.
- When making investments in new areas, the company ought to exercise caution. These markets may contribute to the company’s improved revenue. About the macro-environment, Tesla is a fierce rival to its rivals.
4. Technological
- Tesla vehicles are up to date with advances in technology. These premium cars with the latest electronics represent the future, and their characteristics appeal to customers. The fuel-efficiency feature redefines sustainability.
- Furthermore, cutting-edge technology adds to the list of advantages. However, technology is constantly developing. To compete, a company can quickly develop a similar feature.
- However, the features of Tesla-inspired online mobile systems and automation are unequaled. This section of the analysis offers optimism for progress due to technical advancements.
5. Legal
- As Tesla expands its operations to different nations, it must maintain regulations and adapt its procedures to comply with the standards. Tesla has the potential to promote its environmentally friendly automobile worldwide while also enhancing its foreign patents.
- It may potentially decide to launch its energy solution products in other markets. Tesla’s limited international sales operations, along with several jurisdictions’ bans on direct sales, may cause difficulty.
- Overall, the Tesla PESTEL research shows that Tesla has a growth opportunity in the global automobile market, taking into account its legal macro-environmental aspects.
6. Environmental
- The environmental variables are helpful to Tesla. The organization supports the expansion of environmental programs addressing climate change and resource conservation challenges.
- The company has built a reputation for itself by adhering to several of these standards. Environmentally conscious products like solar panels, batteries, and electric vehicles are part of the sustainable future.
- By examining the ecological aspects, Tesla can anticipate growth.
Despite certain external risks, the analysis above shows that Tesla functions successfully and has a lot of chances to grow.
Conclusion
We hope you have now gained a better understanding of how to do pestle analysis. Try to follow the correct procedure and come up with a brilliant pestle analysis report that is worthy of achieving top grades. In case, you face any difficulties while doing pest analysis, talk to the assignment experts at greatassignmenthelp.com. The experienced management academic writers in our team will offer you the best assistance in finishing your pestle analysis assignment at a reasonable cost.
