5 Best and Practical Pestle Analysis Examples to Know

Table of Contents

In a PESTLE analysis, we assess key external factors like Political, Economic, Sociological, Technological, Legal, and Environmental that influence an organization. This framework is versatile and supports senior managers and HR professionals in making informed strategic decisions. This blog by All Assignment Help will present several insightful PESTLE analysis examples to enhance your understanding of the concept. You can leverage these examples to excel in your marketing assignments at university.

Pestle Analysis Examples

Below are the companies discussed in this blog.

Table of Content:

1. Uber

2. Nike

3. Coca-Cola

4. Adidas

5. Apple

1. Pestle Analysis Examples: Uber

In this section, we will share with you the first of the five pestle analysis examples.

Uber is a rapidly growing taxi service provider in the world. People like its features such as easy accessibility with the app and taxi sharing. However, there are controversies such as minimum wage complications and banning that are not helping its cause.

And now let us find out more about this company through a Pestle Analysis example. The infographic below will give you a brief on what we have discussed ahead:

Political Factor: Endless Controversies

Uber has faced numerous controversies, many of which stem from a lack of clarity regarding its regulations. One significant issue is the ambiguity surrounding its insurance policies. Users often have pressing questions, such as:

Accountability in Accidents: Will the company hold the driver accountable for incidents, or will Uber assume responsibility?
Insurance Coverage: What exactly does Uber’s insurance policy cover during a ride?
Regulatory Compliance: How does Uber ensure compliance with local laws and regulations in different markets?
Driver Classification: Are drivers classified as independent contractors or employees, and what implications does this have for their rights and benefits?

This uncertainty not only undermines trust but also complicates the regulatory landscape in which Uber operates. Addressing these concerns transparently is crucial for Uber to navigate its political challenges effectively.

Read Here: PESTLE Analysis: A Significant Business Analysis Tool

Economic Factor: Sharing Economy

Uber operates within a sharing economy, where physical and intellectual resources are shared among users. This model allows customers to easily connect with drivers via the app, facilitating convenient transportation at generally lower costs compared to traditional taxis.

Key Economic Insights:

Cost Advantage: Many customers find Uber more affordable than conventional taxi services, making it a popular choice for transportation.
Rapid Growth: Since its inception, Uber has experienced remarkable growth, expanding its reach in numerous markets around the globe.
Regulatory Challenges: In some regions, Uber faces accusations of unfair competition against regular taxis, leading to bans and restrictions on its services. This scrutiny is not limited to Uber alone; other ride-sharing companies are also being evaluated for similar issues, but Uber remains the primary focus due to its market dominance.
Job Market Impact: The rise of Uber has sparked debates about its effect on employment. While some view it as a threat to traditional jobs in the taxi industry, others see it as a source of new job opportunities for drivers seeking flexible work arrangements.
Market Potential: Despite the challenges, Uber benefits from its strong brand recognition and the overall demand for taxi services. The transportation market presents ample opportunities for growth, and Uber must continue to innovate and adapt to maintain its competitive edge.

Social Factor: Easy availability

Uber taxi services are user-friendly and accessible.
To book an Uber ride, all you need to do is order through a mobile app. In a few minutes, you will get the confirmation of your ride.
People show gratitude to Uber for an affordable ride. It increased the fare charges with its popularity. But, people still prefer it due to its accessibility.

Technological Factor: WildFire

Uber has reaped many benefits through the technology directly and indirectly.
People post positive views on various social media platforms. It has helped the company to grow fast. Next, its app is much helpful for users.
Users can book their cabs from anywhere. App also gives information like estimated ride charges, drop-off location, traffic, and weather. Users can pay their charges through the app.

Legal Factors: Bannings

Above we discussed how Uber has faced bans in many countries for different reasons. Hence, the company needs to follow technical usage laws, labor and employee safety laws, and copyright laws as well. However, you can know more about legal factors associated with uber under the guidance of an experienced assignment writing service provider.

Environmental Factors: Questionable responses

The impact of Uber on the environment is not certain. Few say that fuel usage and traffic congestion is increasing.
Studies say the same when it comes to traffic congestion. It is because people may use Uber instead of public transport. Analysts are yet to confirm such blame.

Conclusion

In conclusion, Uber is the fastest-growing taxi service, provider. Its affordable charges and ease of use have helped it in becoming popular. Some controversies are also hindering its progress.

But, the company must carry on its service throughout the world. Of course! They need to keep a check on the controversies as well.

2. Pestle Analysis Examples: Nike

Nike Corporation, a prominent US-based international company, specializes in the design, development, and sale of footwear, clothing, and various sports-related services. Renowned for its innovative sports shoes and apparel, Nike has established itself as the leading brand in the athletic wear industry. In 2015, the company generated an impressive revenue of $30.601 billion, solidifying its position as the most valuable brand in the sports sector.

Now, let’s conduct a PESTLE analysis of Nike to gain insights into its current standing and the external factors that influence its operations. The infographic below provides a concise overview of the key points we will explore.

Political Factor: Must Consider Taxation

The political environment has a huge impact on Nike as it is globally present. Hence, the company must consider the taxation and manufacturing rules of a country.
Nike needs to keep an eye on the import and export laws of a country. It affects its product distribution worldwide.

Economic Factor: Must Have Good Purchasing Power

Nike needs to focus on the conditions of the economies where it offers its products.

It can target economies such as US, UK, and others. All these countries have a stable economies. Nike can find customers with good purchasing power there.
Fast-growing nations are also an opportunity for Nike.

Social Factor: Needs to Refine Their Production Practices

Nowadays, people are conscious about their health. They are increasingly playing sports to stay fit. Nike plays an active role.
It regularly comes up with high-quality sports shoes and apparel. It molds its products as per the customers’ needs to get positive results.

Technological Factor: Excellent Use of Social Media

Nike gives importance to technology. It also needs to keep an eye on the technology it manufactures. It will help the company in competing well in the market.
R&D investment is the external technological factor that affects Nike. The constant changes the technology is an opportunity, and a threat as well.

Legal Factor: Affect Large Business Globally

Nike should keep an eye on the copyright of designs of shoes and apparel it manufactures.
It also has to make sure it is not involved in child labor or breaking employment rules.
Health and safety rules are also important for Nike to follow to maintain its global reach.

Environmental Factor: Products are Not Environmental Friendly

At present, the environment is the prime concern globally.
Nike is a leading brand. The company needs to come up with environment-friendly products. It will help them gain brand value.
Also, it will increase sustainability for the company.

3. Pestle Analysis Examples: Coca Cola

In this section, we will share the third of the five pestle analysis examples.

Cola Cola is a famous soft drink producer. It offers different products to its large number of customers worldwide. It uses the finest technology in production. Its products meet customers’ expectations. It is a renowned soft drink production company in the world. If you are assigned with writing a case study on coca cola, you can always go for assignment help for thorough research and content. This will help you impress your professor.

Let us take a look at the pestle analysis example of Coca-Cola. The infographic below will give you a brief on what we have discussed ahead:

Political Factor: Must Follow FDA Rules

Coca Cola products are tested by FDA. It should follow the rules of a country. It should also provide the local stores with the best beverages.
Countries may prevent it from distributing its products if all rules are not followed well.
Rules can be related to accounting, internal marketing, labor, or taxes.

Economic Factor: Focus on Healthy Drinks

Coca Cola has a huge customer base around the world. The company produces its products in various countries.
It keeps its customers’ tastes and preferences in mind. Most of its revenue comes from beverage sales.
Recently, people have started giving preference to healthy drinks. Coca Cola has realized it. It is moving in that direction.

Social Factor: Social Pressure in Middle Eastern Countries

Urban areas are the major market for this company.
Coca Cola has introduced more than 30 alternative flavors in Japan. It has done the same in China.
It is more focused on offering healthy products when it comes to the US. Coca Cola water and teas are some of the products that come under this category.
Coca Cola can take the same approach in the countries such as Japan and China.

Also Read: Strategic Analysis Tool

Technological Factor: Boon in Social Media

Coca Cola can be very effective with the use of new technologies.
It will help it in manufacturing a large number of quality products.
Coca Cola has a technological setup in Britain. It ensures customers get the finest products in a short time.
Coca Cola has also used social media to increase its popularity. Its promotion campaigns have been a hit on various social media platforms.

Legal Factor: Retains all Rights

The company has done well in securing all the rights of its business. It has the rights to all the past and future products that it develops with a patented process.

Environmental Factor: Biggest Consumer of Fresh Water

Water accessibility is essential for Coca Cola to manufacture its products. If they don’t have water accessibility, then they can’t operate.
It needs to ensure that water processing is environment-friendly.

Conclusion

In conclusion, Coca Cola is a well-known brand around the world. It is famous for its soft drinks. However, it also needs to cover the customers that are keener on consuming healthy drinks.

4. Pestle Analysis Examples: Adidas

In this section, we will share a fourth of the five pestle analysis examples.

Adidas is in sports shoes and apparel. It is a Germany-based firm. It got its name inspired by its founder Adolf Hassler. The company is still running well and tackling all the economic challenges of various economies.

Let us take a look at the pestle analysis example of Adidas to know the external factors that affect it. The infographic below will give you a brief on what we have discussed ahead:

Political Factor: Many Systems

Adidas is a company that has faced many risks and civil unrest. It dealt with huge changes in political policies.
It has been in focus on various political factors. Some are war, terrorism, expropriation, and nationalization. All these factors cost money and time. It mostly delayed product delivery.
The tax system is another factor that keeps changing based on the party.
Political factors are sometimes hard to understand. Hiring an assignment helper in USA will prove fruitful in grasping the political factors of Adidas.

Economic Factor: Credibility Problems

Till 2005, this company faced many economic failures. Economic factors such as inflation, per-capita income, unemployment, and taxation affected its profits.
Instability in the stock market also affected its growth rate.
These factors also affect the purchasing power of the customers. It resulted in a decrease in the revenue of Adidas.

Social Factor: Consumer Awareness of Health

Adidas shoes and apparel designs meet the latest trends and are distinctive. People of all ages, cultures, and religions use it.
The company mostly attracts customers who are sporty and athletic. Social factors affect the purchasing habits of a person.
The thing that Adidas needs to focus on is the Islamic countries. It needs to make strategies to promote its products keeping the Islamic culture in mind.

Technological Factor: Smart Possibilities for Sportswear

Using technology in an ideal way is the key to success.
Adidas uses its own technology which makes it different from competitors. It helps the company stay one step ahead in manufacturing the products.
Adidas uses its online website to sell its products around the world. It is also a fine use of technology.

Environmental Factor: Less Influence on the Environment

Adidas claims that none of its factories and manufacturing units produces any restricted products.
It keeps control of the volatile and different organic compounds emissions. Adidas focuses on producing sustainable products. It helps them in increasing product quality and brand image

Legal Factor: Patents and More Patents

Adidas has a high reputation. It has a global reach and enjoys customers’ trust from around the world.
The company needs to make sure it does not get into legal trouble in any country. Also, it can directly impact their brand value.

Conclusion

In conclusion, Adidas is a famous brand and it is also doing well at the moment in all aspects of marketing. It needs to set higher objectives. It will help the company in moving forward.

Also Read: Business Startup Plan

5. Pestle Analysis Examples: Apple

In this section, we will share a fifth of the five pestle analysis examples.

Apple is a renowned brand in the world. Its smartphones, PCs, tablets, Music players, and TVs are very popular. Although it is an expensive brand, people still go for it as it adds luxury to their lifestyle.

Let us take a look at the pestle analysis example of Apple. The infographic below will give you a brief on what we have discussed ahead:

Political Factor: Improving Free Trade Policies

Apple manufactures its products in China because of the lower cost of manufacturing charges. Hence, any political rift between the US and China may affect its operations. But, finding an alternative is not easy as it is expensive.
You can also not deny that the company is in the dominant position. It is able enough to deal with some political pressure.

Economic Factor: Rapid Growth of Developing Countries

Apple must consider that an increase in labor costs in China could raise its manufacturing expenses. Additionally, a decline in middle-class incomes may negatively impact Apple’s market share. If the US dollar appreciates, exchange rates will rise, which could benefit Apple by enhancing its profit margins in China and Europe.

Social Factor: Rising Use of Mobile Access

Although Apple is popular around the world, it still has not tasted success in areas like Africa. In the US, low-income people are against it as it is expensive. So, the appeal Apple is not much in China due to ethical concerns.
Apple needs to make people aware of its features.

Technological Factor: Growing Cloud Computing Demand

Google and Samsung have copied some of the features of Apple products and services. Some of the apps and services are also in the market which shows that Apple is no different.
So, increasing the use of smartphones and tablets may also decrease the demand for Apple products. In the high-tech surrounding, an Apple device may seem less secure. So, Apple needs to consider all these aspects when it comes to technology.

Legal Factor: Increasing Privacy Regulations

Recently, Apple has started a highly regulated service through Apple Pay.
Apple may have to face some regulations as a result. The government may also increase oversight of it.
According to some of the reports, Apple may start automobile manufacturing. It may increase insurance, regulatory costs, and legal proceedings for Apple.

Environmental Factor: Energy Efficiency Trend

The disposal of nonworking electronic devices is the biggest environmental issue for Apple. Disposal of lithium batteries costs high.
China is much concerned about the environment and pollution. China has announced that it will limit the use of fossil fuels and greenhouse. It will increase the electricity cost. So, the manufacturing costs will increase for Apple as a result.

Also Read: Detailed PESTLE Analysis of Apple Computers

Conclusion

In conclusion, it is a must for Apple to look into all the matters that we discussed in the pestle analysis of it. But, this company is strong enough to keep doing well despite this challenge.

Final Words

So, that sums up this article, where we explored the PESTLE analysis of five different companies. We hope these sample analyses were informative and valuable to you. If you need assistance with your business assignments, don’t hesitate to seek our business management assignment help. Additionally, we offer support for students navigating their online classes. Simply tell our experts, take my online class for me, and you’ll receive help from industry professionals ready to assist you.

FAQs

Q: What Benefits Can be obtained from a PESTEL Analysis?
A: i) It may offer early notice of potential dangers and possibilities.
ii) Organizations can learn about external trends with the use of analysis.
iii) It urges companies to take into account their operating environment.

Q: How is PESTEL Analysis associated with marketing strategy planning?
A: A PESTLE analysis is a useful method for creating marketing strategies. This is so because marketing requires interaction with a world outside of your company. It can assist you in determining your target markets, the most effective marketing avenues, the ideal message timing, and conversion objectives.