PESTEL Analysis

Overview

PESTEL scans the macro-environment across six dimensions to identify external forces that could impact a business or industry. It operates at the macro level — broader than industry (Porter's Five Forces) or company (SWOT). Use it to surface trends and risks the organization cannot control but must respond to.

When to Use

Trigger conditions:

• User evaluating a new market or country for expansion
• User needs to understand regulatory, economic, or social trends
• User wants to identify macro risks before strategic planning
• User asks "what external factors should we consider?"

When NOT to use:

• For company-specific assessment → use SWOT
• For industry competitive dynamics → use Porter's Five Forces
• For product portfolio decisions → use BCG Matrix