When to use the PESTELE framework
Use the PESTELE framework to:
Identify factors outside of your business and industry that may impact your products, profitability and your business as a whole.
Identify whether your business should take a stance or comment on political or ethical topics within your industry that may impact your reputation.
Understand where you may be falling behind, and where competitors can pull ahead.
How to use the PESTELE framework
Unlike the Five Forces, which can largely be filled in through some level of intuition and understanding of business models, PESTELE requires a lot more research to understand the different trends impacting your brand.
Start by diving into each driver of the teacher data PESTELE analysis above. Politically, have any laws been passed that could impact your business? Any new laws Are there any new social trends that might make your business appetizing? Any new technology (i.e. generative AI) that could dramatically change the way people use your service? What’s going on economically, and how might the economy impact social media efforts or the earnings of your business?
What counts as a notable factor is entirely up to you, but PESTELE will open your brain up to think creatively about the business world around you.
SWOT Analysis
A SWOT Analysis is a popular framework used to categorize how you’re doing as a company. With the acronym standing for Strengths, Weaknesses, Opportunities and Threats, SWOT essentially looks at how the present and future can coexist within a single framework. Take a look at an example SWOT of Starbucks. While it has the workings of a strong company in the present, the opportunities and threats section of the SWOT can help the company assess how it moves forward.