PESTEL Analysis

Download our free PESTEL analysis template today (completed example below)!

The acronym PESTEL stands for Political, Economic, Social, Technological, Environmental, and Legal factors. This analysis provides a framework for thoroughly identifying external factors that may present your business with challenges or opportunities. Understanding and planning for these factors will help you be more proactive and implement more informed strategies to grow your company or defend its existing business. A PESTEL analysis also complements a SWOT analysis, allowing you to dig deeper into external factors and identify opportunities and threats that may have been missed otherwise.

Knowing what impacts the broader landscape in which your business operates can lead to better strategic awareness, risk management, uncovering new opportunities, and better resource allocation; all keys to establishing a sustainable competitive advantage.

Diagram of the six factors in a PESTEL analysis including Political, Economic, Social, Technological, Environmental, and Legal factors.

If your business is struggling to develop a PESTEL Analysis, our team can help. Schedule a discovery session today to understand how our affordable expertise can assist your business. Whether you have the occasional question or require more comprehensive guidance, we offer a range of options to meet your needs.

Completed PESTEL Analysis Example

The example below shows a completed PESTEL analysis for an outdoor clothing company selling online and in-store. The business has 10 locations in Washington and Oregon and online customers nationwide. This framework highlights the factors impacting the industry along with the local and national markets in which this company competes. With this knowledge, leadership can implement strategies that give their company the best chance to establish a competitive advantage.

Click on the image below to download the completed example.