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Prepared By
Manu Melwin Joy
Assistant Professor
School of Management Studies
Cochin University of Science and Technology
Kerala, India.
Phone – 9744551114
Mail – manumelwinjoy@cusat.ac.in
Kindly restrict the use of slides for personal purpose.
Please seek permission to reproduce the same in public forms and presentations.
PESTEL Analysis
• A PESTEL analysis is a framework or tool used
by marketers to analyse and monitor the
macro-environmental (external marketing
environment) factors that have an impact on
an organisation. The result of which is used to
identify threats and weaknesses which is used
in a SWOT analysis.
Political environment determines the extent to which a
government may influence the economy or a certain
industry.
Economic environment consists of determinants of an
economy’s performance that directly impacts a
company and have resonating long term effects.
Social environment scrutinize the social climate of the
market, and gauge determinants like cultural trends,
demographics, population analytics etc.
Technological factors pertain to innovations in
technology that may affect the operations of the
industry and the market favorably or unfavorably.
Legal factors pertain to certain laws that affect
the business environment in a certain country.
Environmental factors include all those that influence
or are determined by the surrounding environment.
Apple PESTEL Analysis
Political
Low cost manufacturing in China
calls to restrict Chinese imports in the United States
growing nationalism and anti-Americanism in China
Economic
Increased labour costs in China
Stagnating middle-class incomes in developed countries
A strong U.S. dollar could increase exchange rates
Social
Growth in consumer spending in africa
younger people in Apple’s established markets lack the
strong emotional attachment
A backlash against expensive products among some
customers
Technological
Competitors duplicate Apple’s products and services
(Google Pay in one year after the release of apple pay)
Limited New consumer products (Apple TV)
cyber criminals make Apple’s systems less secure
Environmental
disposal of used or nonworking electronic devices
Pollution from manufacturing facilities in China
transoceanic shipping and Apple’s supply chain
Apple is highly vulnerable to increases in electricity
costs
Legal
By offering financial services, Apple could face increased levels
of litigation
Entering the auto business could increase regulatory, insurance
and litigation costs at Apple.
intellectual property laws make the company highly vulnerable
to both piracy and litigation.
PESTEL Analysis - Manu Melwin Joy - School of Management Studies, Cochin University of Science and Technology

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PESTEL Analysis - Manu Melwin Joy - School of Management Studies, Cochin University of Science and Technology

  • 1.
  • 2. Prepared By Manu Melwin Joy Assistant Professor School of Management Studies Cochin University of Science and Technology Kerala, India. Phone – 9744551114 Mail – manumelwinjoy@cusat.ac.in Kindly restrict the use of slides for personal purpose. Please seek permission to reproduce the same in public forms and presentations.
  • 3.
  • 4. PESTEL Analysis • A PESTEL analysis is a framework or tool used by marketers to analyse and monitor the macro-environmental (external marketing environment) factors that have an impact on an organisation. The result of which is used to identify threats and weaknesses which is used in a SWOT analysis.
  • 5.
  • 6.
  • 7. Political environment determines the extent to which a government may influence the economy or a certain industry.
  • 8. Economic environment consists of determinants of an economy’s performance that directly impacts a company and have resonating long term effects.
  • 9. Social environment scrutinize the social climate of the market, and gauge determinants like cultural trends, demographics, population analytics etc.
  • 10. Technological factors pertain to innovations in technology that may affect the operations of the industry and the market favorably or unfavorably.
  • 11. Legal factors pertain to certain laws that affect the business environment in a certain country.
  • 12. Environmental factors include all those that influence or are determined by the surrounding environment.
  • 13.
  • 15. Political Low cost manufacturing in China calls to restrict Chinese imports in the United States growing nationalism and anti-Americanism in China
  • 16. Economic Increased labour costs in China Stagnating middle-class incomes in developed countries A strong U.S. dollar could increase exchange rates
  • 17. Social Growth in consumer spending in africa younger people in Apple’s established markets lack the strong emotional attachment A backlash against expensive products among some customers
  • 18. Technological Competitors duplicate Apple’s products and services (Google Pay in one year after the release of apple pay) Limited New consumer products (Apple TV) cyber criminals make Apple’s systems less secure
  • 19. Environmental disposal of used or nonworking electronic devices Pollution from manufacturing facilities in China transoceanic shipping and Apple’s supply chain Apple is highly vulnerable to increases in electricity costs
  • 20. Legal By offering financial services, Apple could face increased levels of litigation Entering the auto business could increase regulatory, insurance and litigation costs at Apple. intellectual property laws make the company highly vulnerable to both piracy and litigation.