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PESTLE Analysis Example


5 Best and Practical Pestle Analysis Examples to Know

Pestle Analysis Example

In this post, we will share with you some of the key Pestle analysis examples. You can use our pestle analysis examples and get good grades in your marketing assignment at the university.

Companies we have covered in this article are given below. You can click the link to directly to go to the relevant section.

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 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:

pestle analysis example
pestle analysis example

1.1 Political Factor

As mentioned above, this company has many controversies to do away with. And one of the things that have put Uber in trouble is that it has not made its regulations clear. For example, people have questions about its insurance policy. Some of the questions that are in the mind of the users are if there is an accident, then the company will

  • hold the driver as accountable or,
  • the company will take the blame for itself.

1.2 Economic Factor

In this section of our sample pestle analysis of Uber, we will take a look at its economic factors.

  • The company operates in a sharing economy. In other words, sharing of physical and intellectual resources take place in the economy in which Uber operates.
  • Customers can easily connect with the driver through the app. Drivers can take them to their desired location. Customers find Uber cheaper than taxis.
  • Uber has seen fast growth since its inception. However, some countries see unfair competition against regular taxis. It resulted in ban and restriction of its services.
  • Other companies are also under the scanner of the authorities for the same reason. But, Uber has been the focal point of this controversy as it is a leading taxi service provider.
  • People are also looking towards Uber to get new job opportunities. They are struggling to decide whether it is taking their job away or bringing new opportunities.
  • One thing that favours Uber is its popularity. Taxi market is full of opportunities. Uber needs to keep doing its best.
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1.3 Social Factor

  • 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 the Uber for an affordable ride. It increased the fare charges with its the popularity. But, people still prefer it due to its accessibility.

1.4 Technological Factor

  • Uber has reaped many benefits through the technology directly and indirectly.
  • People post positive views on the 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.

1.5 Legal Factors

Above we discussed how Uber has faced bans in many countries for different reasons. Hence, the company needs to follow technical usage laws, labour and employee safety laws and copyrights laws as well.

1.6 Environmental Factors

  • 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, 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

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

  • Nike Corporation is a US-based international company. It deals in design, development, and selling of footwear, clothing and other services.
  • Nike is the top brand when it comes to producing sports shows and sports apparel. It earned US$30.601 billion in 2015. It made it the most valuable brand in the sports businesses.

Let us do a pestle analysis example of Nike to know where it stands. The infographic below will give you a brief on what we have discussed ahead:

2.1 Political Factor

  • 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.
Image result for pestle analysis

2.2 Economic Factor

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

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

2.3 Social Factor

  • 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 moulds its products as per the customers’ need to get the positive results.

2.4 Technological Factor

  • 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 threat as well.

2.5 Legal Factor

  • 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 labour or breaking employment rules.
  • Health and safety rules are also important for Nike to follow to maintain its global reach.

2.6 Environmental Factor

  • 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’ expectation. It is a renowned soft drink production company in the world.

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:

3.1 Political Factor

  • 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, labour or taxes.

3.2 Economic Factor

  • 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.

3.3 Social Factor

  • Urban areas are the major market for this company.
  • Coca Cola has introduced more than 30 alternative flavours 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.

3.4 Technological Factor

  • 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 set up 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.

3.5 Legal Factor

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

3.6 Environmental Factor

  • Water accessibility is essential to 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 more keen on consuming healthy drinks.

4. Pestle Analysis Examples: Adidas

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

  • Adidas is in sport’s shoes and apparel. It is the 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 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:

4.1 Political Factor

  • Adidas is the company that has faced many risks and civil unrest. It dealt with huge changes in the political policies.
  • It has been in focus in 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.

4.2 Economic Factor

  • 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.

4.3 Social Factor

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

4.4 Technological Factor

  • 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 the technology.

4.5 Environmental Factor

  • 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

4.6 Legal Factor

  • 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 some legal trouble in any country. Also, it can directly impact their brand value.

Conclusion: In conclusion, Adidas is 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.

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:

5.1 Political Factor

  • Apple manufactures its products in China because of the lower cost 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.

5.2 Economic Factor

  • Apple has to keep in mind that its manufacturing cost will increase if China increases labour costs.
  • A decline in the middle-class income may also decrease Apple’s market. If US dollar witnesses highs, then exchange rates will increase.
  • So, it may help Apple to earn good profits in China and Europe.

5.3 Social Factor

  • 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 of Apple is not much in China due to ethical concerns.
  • Apple needs to make people aware of its features.

5.4 Technological Factor

  • 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 that show that Apple is no different.
  • So, increasing 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.

5.5 Legal Factor

  • 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 on it.
  • According to some of the reports, Apple may start automobile manufacturing. It may increase insurance, regulatory costs and legal proceedings for Apple.

5.6 Environmental Factor

  • Disposal of nonworking electronic devices is the biggest environmental issue for Apple. Disposal of the lithium batteries cost 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, manufacturing cost will increase for Apple as a result.

You can also read more detailed and latest PESTEL Analysis of Apple and SWOT Analysis of Apple on our site.

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.

So, that sums up this article in which we looked at the pestle analysis of five different companies. We hope all these sample pestle analyses was informative for you. We will publish some more pestle analysis examples of other companies in the future. In case you are looking for a custom assignment help with PESTLE analysis of any selected company, you can contact us anytime. Our experienced assignment experts will help you out in pulling off top-notch grade for sure.