PEST-analysis - is one of the marketing tools used to study the external factors affecting the company's operations.It is effective in developing long-term strategies and plans.
PEST-analysis aims to explore the following areas:
«P» (politics) - policy;
«E» (economy) - economy;
«S» (society) - society, social relations;
«T» (technology) - technological aspects.
He is also known as STEP-analysis, but its essence remains the same.Many marketers are expanding their research environment, applying research to the general analysis of additional spheres of public activity.
This type of research, as opposed to swot-analysis aims to study the external factors that directly or indirectly affect the company's operations.
political aspect
PEST-analysis of studies on the example of the political situation can help to react promptly to changes in the legal or tax component in the enterprise.Thanks to the information obtained as soon as possible, the company receives a competitive advantage and can concentrate on other, more important aspects.The political aspect Partly PEST-analysis, an example of which can be seen with the naked eye, to a large extent affect the activity of any company.
economic aspect
First of all, we study the external factors of the economic environment that shape the financial environment is not only a single enterprise, but also the country as a whole.Energy prices, the budget deficit, tax regulations and more - these are the areas that explores the PEST-analysis.An example of their impact on the activities of the company can be seen in the effects of inflation, which leads to corresponding changes in prices for manufactured goods or services rendered.
social aspect
PEST-analysis, an example of which is listed in the study of consumer preferences and expectations form the product portfolio.Behavioural and cultural factors greatly affect the commercial activities of the company.So, for example, products that are in demand among the residents of the western region, can be completely taken negatively by people in the Arab world.
technological aspect
Innovative technologies always give a huge competitive advantage to those who owned them.For this reason it is necessary to carefully monitor the emergence of new technologies in the sphere of activity of the company.In addition, it is important to analyze the presence or possibility of the appearance of the goods, which can eliminate the need in the products.Improperly conducted PEST-analysis (an example of this can be seen in the history of Kodak) can lead to a complete collapse.At the end of the 20th century called the corporation assumed that its main competitors are companies that specialize in the production of film cameras.But by that time I had already started the development of digital cameras, which Kodak will not attach any significance.Thus, today the market is saturated with manufacturers of digital photography, among which was not included previously known company.
