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Best And Illustrative PESTLE Analysis Examples To Know

When it comes to achieving business success, it cannot be managed by business alone. Many external factors affect the growth of a commercial and business. These factors are called Ecological factors or External factors. Therefore, Companies need to endorse their success by understanding and keeping these important external factors in mind to achieve better outcomes than their competitor. With Pestle analysis examples, It’s easy to understand these external factors. It helps Business owners evaluate the state of their industry at large, As well as specific opportunities and fears that might come with it. 

Overview on PESTLE Analysis

Pestle analysis describes as the political, economic, social, technological, legal, and ecological analysis. It is a tactical framework used by companies to evaluate the impact of external factors on their business is also known as pestle analysis.

It helps to comprehend the key force that affects the business environment and performance at bulk. As such, it can be used throughout strategy formulation to assess the potential opportunities or dread in the current macro environment. 

Pestle Analysis examples

Using PESTLE analysis, organizations around the world are doing their level best to produce optimally suited to the preferences of their target audiences. Here, are the illustrative  pestle analysis examples of the same. 

Coca-Cola

It is the major company in the beverage industry with approximately $40 billion in revenue and dominates 50% of the carbonated beverage market. It missions itself to ‘refresh the world’. Make the difference’. 

Let’s take a look at how Coca-Cola its PESTLE mechanisms work and their impact on the firm first. 

  Political factor –

  • Coca-Cola was banned in Sri Lanka for three months in 2013 due to trade restrictions and the country of Cuba and North Korea prohibited the sale and purchase of Coca-Cola due to the political situation. 

Economic factor –

  • In 2018, a new trade agreement between the US, Mexico, and Canada for free and fair trade, and demand for low-calorie drinks has hiked the retail demand of its products, diet coke, zero sugar to 8%. 

Social factor –

  • Online Coca-Cola stores enable the personalization of names in bottles and engage their customers on a personal level. 

Technological factor –

  • Its innovation discovers a way through online gaming portals where consumers play online games and engage personally with the brand. 

Legal factor –

  • The amount of caffeine found in its products and incorrect labeling of products has raised questions in the past in many countries. 

Environmental factor –

  • It is stated that the biggest consumer of fresh water worldwide is taking steps like intelligent agriculture practices to resolve the issue. 

 

Nike 

With huge revenues of $ 42.3 billion, Nike is a worldwide leader in the sports apparatus and attire industry. It accounts for 37% of the global market share and goals to bring encouragement and innovation to every athlete in the world’. 

Let’s see into how Nike makes it happen and understand its PESTLE mechanisms and their influence on the firm in the past. 

Political factor – 

  • The company’s business is spread all over the world, therefore, trade policies of imported goods, trade rules with the US, change of government, sanctions, etc have a direct impact on trade. 

Economic factor – 

  • Nike operates on high import duties and low profits in countries with low purchasing authority. 

Social factor – 

  • Nike has faced past criticism from employees and customers over sweatpant strikes because of the pay and work environment. 

Technological factor – 

  • Nike makes noteworthy investments in research and developments facilities to offer top-notch products. 
  • Nike has suffused capital in various laboratories and acquired expertise in biomechanics, exercise, psychology, engineering, etc. 

Legal factor – 

  • Labor laws of various countries relating to safe and healthy working conditions have led to lawsuits against the firm in the previous years. 

Environmental factors – 

  • Nike is one of the most eco-friendly companies.  
  • It has undertaken research and development for waste reduction, reuse of waste material for production, and adopted eco-friendly manufacturing practices. 

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