5 Outstanding Pestle Analysis Examples to Consider
Is your Pestle analysis assignment submission on hold due to inadequate inclusion of data and a not-so-relevant structure? I have enumerated the facebook swot and pestle analysis examples of five tech giants of the age and the factors impacting them. Pour through them to learn how a strategically conducted Pestle analysis can help determine the rationality of a company’s services.
Analysts collaborate with marketers to filter valuable contextual data from the surrounding market by evaluating political, economic, sociocultural, technological, legal, and environmental factors.
Read the five Pestle analysis examples and discern the analysis-conduction strategy and knowledge.
America’s most prominent conglomerate of roastery and coffeehouses, currently making total equity of 5.32 billion US$, comes first in the category of examples. It is none other than Starbucks.
The Pestle analysis of Starbucks is conducted on business functionalities below:
The organization’s expansion is affected by the Brexit event; the event has reduced the corporation tax of the chain by 60%. Additionally, Starbucks is bound to abide by the rules imposed on it by the government regarding the sourcing of raw materials.
The socio-culture impacts on this company suffer when it comes to offering affordable services. Society equally contains lower-tier people as it is packed with higher-class consumers. In that light, the product quality is sacrificed by Starbucks’ authority which fails to meet the needs of middle-income tier people.
Legal factors include looking after and abiding by the laws imposed on the company by the government of its parent country and the countries where it operates. In addition, Starbucks must stay manufacture caffeine products by following the guidelines of the health authority.
Economic factors do not support Starbucks as potential buyers are increasingly convinced to move to more economical investments. Starbucks’ profitability is dented by the recession of the current Global economy. However, Starbucks has ably retained its loyal customer base by showcasing its brand value. Economic factors in the field are taxation level, currency exchange rates, and operational cost.
Starbucks has a provision for Wi-Fi facilities as a means to attract customers. It has, additionally, tied up with Apple to deploy tech-based operations like providing discount coupons to customers. Mobile payments are also enabled for customers’ convenience. Other technological factors include biotechnological and agricultural developments.
Starbucks employs and maintains legal business practices with legal activists and advocacies. The brand performance is mainly threatened by environmental disasters that affect the production of coffee beans. The company is trying to devise feasible preventive measures at its best.
Nike is a multinational company based in the United States that deals with designing, developing, and selling footwear and clothing products. It is one of the top brands producing sportswear, earning 30.601 billion US$ annually.
The Pestle analysis of Nike is conducted on the business functionalities below:
Nike needs to consider the taxation factors and the manufacturing rules of every country where it operates and follow the import and export laws.
Nike should focus on attracting customers from the US and the UK as they have a stable economy and can also form a good customer base there. However, Nike can benefit more by concentrating on the economies of the fast-growing nations.
Nike has an excellent opportunity to increase its sales more than ever as commoners have become health conscious. In that light, Nike can blend customers’ needs with its manufacturing features to meet customers’ requirements and get a positive value in return.
Nike needs to keep an eye on its R&D investments to sustain its position and stand apart from the crowd.
The copyright designs of the manufactured apparel and shoes should undergo a thorough check. Nike cannot afford to break employment rules by involving child labor if it wants to maintain its global reach.
Coming up with environment-friendly products help Nike meet global standards, eventually boosting the company’s sustainability.
Apple is a renowned multinational company that ideally defines luxury and has won the hearts of the millennials. It is a renowned brand that rolls out expensive but valuable products like smartphones, tablets, TVs, and PCs.
The Pestle analysis of Apple is conducted on the business roles below:
Although a US-based company, Apple prefers manufacturing its products in China because of its lower production cost. However, any political rift rising between China and the US will affect its operations, making it harder for the company to find a feasible replacement. However, due to its dominant position, it will assumably be able to fight back any risk outbreak.
Apple is yet to taste success in nations like Africa. Also, in its parent nation, Apple is yet to be entirely accepted by middle-income tier people.
Because of Apple Pay’s highly regulated service, Apple might have to face specific regulations and be under the government’s increased oversight.
Economic factors like increased production costs will make Apple have a hard time if China increases its labor costs. Also, if middle-class earners reduce income, Apple may struggle for sustenance. However, with increased US dollars, the exchange rates shall get a boost, helping Apple to earn profit from Europe.
Most of Apple’s features are out in the market now, and consumers rarely find any difference in features between Apple products and Google products. And with the increased use of cell phones, Apple’s demands can be at stake.
Apple gadgets deploy batteries made of lithium, whose disposal costs are high. The non-working Apple devices can harm the environment as disposing of them will be costlier. Also, China is marching towards the limitation of greenhouse gases and an increase in electricity costs. This means an increased production cost for Apple products.
3. Coca Cola
Coca-Cola is a soft drink manufacturing brand that meets global customer requirements by producing healthy, flavourful soft drinks.
The Pestle analysis of Apple is conducted on the business operations below:
Coca-Cola must adhere to the Food and Drug Administration rules to continue serving healthful beverages to customers. It should also strictly adhere to the accounting, internal marketing, and labor legislations when manufacturing soft drinks.
Just like Coca-Cola has introduced its brand in the United States, it should do the same in other nations like China and Japan.
Legal factors are suitable for a brand like Coca-Cola as it has shown tremendous performance by adhering to all legal business rights.
Coca-Cola is well-aware of customers’ preferences which can be witnessed by the income it makes from the sales of soft drinks. However, undoubtedly, Coca-Cola should focus on promoting its soft drinks.
Coca-Cola has kept its best foot forward in increasing its client base by resonating with their requirements better with the aid of technology. Coca-Cola effectively uses social media to learn about customers’ needs and meet them efficiently.
Perhaps, the company needs to function in areas with little or no water shortage.
Uber is a fast-growing company that offers taxi services to people worldwide. People can enjoy comfortable rides by accessing the app through mobile. Uber offers both single and shared taxi services to its customers. However, the multinational company is suffering from minimum wage problems and might not benefit if it gets banned.
The Pestle analysis of Apple is conducted on the business functions below:
Some of the political factors Uber needs to check are clarifying its stand on driver’s insurance, adhering to the minimum wage regulations, and handling ban issues in several nations.
Since Uber is diligent in offering fast pick-up and user-friendly services, it faces fewer social issues. Also, reviews expand customers’ preference for Uber for a better ride experience than taxis.
If Uber can deal with the ban issues strategically, it might start performing well and sustain itself in the long run. But, the company also needs to thoroughly check the labor safety laws and strictly consider the intrinsic copyright laws.
Its easy access and affordable service charges have ushered Uber to people’s daily life requirements.
Uber’s integrated app provides outstanding service to its users. Additionally, it makes use of social media for promotional activities.
Increased fuel usage and traffic congestion might make Uber suffer a setback.
The Pestle analysis examples stated above must have satisfied your quest to know how Pestle analysis helps a company understand its drawbacks. Also, you know the factors that should be considered when conducting the Pestle analysis for a company. Therefore, here is my suggestion: refrain from conducting a random analysis and follow an in-demand procedure to reach an outcome. Use this post as a stepping stone for conducting an A-OK Pestle analysis next time.
Author’s Bio:Amy Anderson is a case study writer at Tophomeworkhelper.com. she has conducted swot and pestle analysis for several companies like Facebook swot and pestle analysis and Facebook case study.