Pestel analysis of information technology industry

What changes should be expected and when? Can you identify the driving forces which will bring about these changes? Also, what are the opportunities and risks for your business operations, such as in terms of demand or the market behavior of customers, suppliers and competitors?īoth primary and secondary sources of information are available for use in the PESTEL analysis. Nevertheless, you should examine the previously mentioned factors separately in the PESTEL analysis and determine the status quo as well as current trends. Technological developments as well as political decisions also often influence the economic scope of action. A change in an environmental factor, such as an increased environmental issues in a region, usually also has legal or socio-cultural implications, such as environmental regulations being imposed and a growing environmental awareness among the population. The factors described above are sometimes interconnected. customs policy (import and export duties),Įxamples of non-tariff trade barriers include:Īdditionally, political factors which affect the economic development of the market can also be an opportunity for companies, such as with:.

The tariff trade barriers which might affect how you are allowed to run your business operations include but are not limited to:

governmental regulation and deregulation.Īnalyzing political factors mainly helps identify tariff and non-tariff trade barriers which might make it more difficult for you to enter a target market, posing risks to your business model.

the level of bureaucracy and corruption,.

These factors include but are not limited to: PESTEL analysis’s political factors include all governmental aspects which directly or indirectly affect your company’s business activities.

Pestel analysis of information technology industry