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PESTLE Analysis: What Is It and Why Should You Care?

PESTLE analysis is a tool that has made marketing a diverse mindset for several companies. Built off of the backbone of traditional marketing principles, PESTLE helps organizations gain a superior footing in competitive industries. If you’re familiar with SWOT analysis, then PESTLE should be a familiar change.

The Full Picture

Pestle Analysis is here to stay as a technique every business should capitalize on. There are multiple factors that go into the external framework of its strategic planning.

If you already have a full rundown of the inside portions of your business, then PESTLE analysis will complete it by showing you an outside perspective.

This isn’t a limitation of the tool, and instead shows its power of focus in taking the guesswork out of running a business.

You take a lot of the guesswork out of business while taking care of risks, errors, and time-sensitive internal discussions.

You should always pair PESTLE with a solid foundation in order to reap its full benefits.


A resource that is used wisely is worth double its value in a business setting. Time is considered a valuable resource in business, and how you use it will determine the effectiveness of your PESTLE analysis.

This is especially true when using it for environmental scanning with complicated data sets. With SWOT analysis you can get a clear picture of future decisions.

But with PESTLE you’ll get the same type of data in a more cost-effective way. Saving time holds infinite value to a company, even when its resources are substantially larger than the next competitor.

With the extra time saved, you can reinvest in other strategies or double down on your current working decisions.

Changing Factors

PESTLE analysis is all about fluidity, or rather the ability to mold itself to constant shifts. How well you manage it as a tool will decide if these changing factors will improve or deteriorate your company outlook.

Political, Economic, Social, Technological, Legal, and Environmental changes are always expected. If you only rely on PESTLE, then these influences will turn your predictions to shreds – this has been a mistake often repeated by a misunderstanding of the current model.

PESTLE is a tool on its own is limited, but PESTLE when used with companion marketing techniques is one of a kind.


Simple isn’t always the best way to handle marketing. Marketing that has value is meant to be complex, and it should be treated in a way that gives the results flexibility.

If you simplify PESTLE by turning it into a bullet list with bits of information, then the results get lost in an easier-to-digest format. Great for recaps, but fully against the critical points that the model works so hard to push.

PESTLE analysis is at its worst when the bulk of it is left up to the imagination of individuals. When the information provided promotes the ideals of the company, then PESTLE is at its absolute best.

A Deeper Understanding

Once in place, PESTLE analysis has a chance to directly affect the business environment. It can identify influential factors to help with a successful product launch.

Factors such as consumer laws, safety, technological issues, and customer expectations are all part of necessary strategic thinking for a company.

As you go over each one of these things, PESTLE fills in the gaps and makes planning more predictable.

There are plenty of landmines to avoid before launching a product, and no company is perfect. Instead of wasting resources on an inferior launch, you’ll be able to control the narrative before consumers can form an opinion.


Again, time is a valuable resource for any business. Shallow lists of information exist at all levels, and in some cases can be bulk purchased to speed up research.

PESTLE analysis is not a buffet of information that any company can plug in and use for its own interests.

It is tailor-made for your company so that you don’t have to spend countless hours picking through pointless marketing data.

The biggest myth about PESTLE is that it eats up all your time. When used correctly, it is the exact opposite of a time-waster.

Information can change at any moment, so random information will be outdated once you get it. With PESTLE, you can set it up so that information is always relevant.

Finding Data

When using PESTLE for its intended purpose, you can fully examine changes and developments with marketing plans, products, and customer relationships.

More importantly, PESTLE can provide you with the blueprint on how this data is best used within your company.

Businesses are able to create awareness and increase profits with minimal risks. External threats are everywhere, but sometimes shining a light on them is the only way action can be taken.

If expectations for this type of data are low, then PESTLE analysis will be a huge eye-opener for any company.

Mishandled Information

Good data can be mishandled, and in turn, will create problems that shouldn’t exist. Information mishandling is a risk that every company takes with its marketing strategy.

Whether valid or not, how you use data will determine its value. PESTLE takes on a lot of data so that the conclusion makes sense.

Instead of worrying about variables that are outside of your control, you get all of the necessary data to make a well-informed decision.

Companies that get confused with an abundance of information will find that PESTLE makes things worse. This is actually a pro and not a con, as PESTLE is not meant to be a shortcut to marketing success.

In order to get the full picture with PESTLE analysis, you have to take all of the information instead of picking and choosing the bits you like.

This is good training for a company that invests in marketing since it strengthens their ability to think strategically.

Use It with Care

It is a powerful tool, but will only benefit those that understand how to use it. You should never settle for PESTLE analysis, but instead, embrace what it can do for your company. It is the future, and there is nothing better than being a step ahead of everyone else.


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