Pestel Analysis: How to Assess Your Business Industry

A practice that is often used to take the better business decisions it is analyze the attractiveness of the industry where you are present through the PESTEL model.

This analysis consists of description of the environment through political, economic, social, technological, ecological and legal factors (hence the acronym PESTEL).

We share some trigger questions so that you can do this analysis yourself and define the direction of your company:

political factors

• What is the profile of the current government?
• Is it a consolidated government or a new administration?
• What attitude does the government have towards entrepreneurship, SMEs and electronic commerce?
• Exist ?
• Are you going through a transition or will there be elections soon?

Economic factors

• How are exchange policies and interest rates characterized?
• ?
• How are labor costs determined? What are the expected profit margins?
• How is the industry developing? And in relation to GDP: is it growing, stagnant or declining?
• What is the rate of inflation?

Social factors

• Is society adapted to new technologies?
• Is there optimism or pessimism regarding the economy?
• How are the different social strata configured?
• Are you going through a change in relation to people’s consumption habits?

technological factors

ecological factors

• How do environmental protection laws influence the internet?
• What expectations does society have regarding care for the environment?
• Do the measures taken regarding energy consumption affect the e-commerce industry?
• What incidence does it have?

legal factors

With this PESTEL analysis you will have a fairly clear picture of the environment in which your business operates.

If this is interesting to you and you want to go a little further, we propose that you perform the same task for three future scenarios: one possible, another a little more probable and another rather desirable for the development of your business.

This is done through “futurology”, that is, inventing a bit of what could happen, or what would be convenient for the success of your project. It will help you to know if the environment accompanies your strategy or not and, in such a case, anticipate your next move. 😉

Good sales!