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PESTLE analysis

Evaluate the macro-environmental factors that can impact your business or product

About the PESTLE analysis template

A PESTLE analysis — an acronym for political, economic, social, technological, legal, and environmental — is meant to help you understand external influences relevant to your product and industry. This way, you can anticipate challenges, capitalize on new opportunities, and make more informed product decisions.

As you complete a PESTLE analysis with your team and other stakeholders, be sure to consider both current and potential future impacts to your company and product. Seek diverse perspectives so you can capture a complete view of impacts.

Take your time with this one. It is meant to be a continuous process — not something that is one and done.

Best practices

Better navigate the landscape that you operate in.

Gather research Dig deep into each factor in your PESTLE analysis. The idea is to get a broad sense of each external influence and, importantly, how they influence one another.
Identify trends Capture patterns or similarities across PESTLE factors. This foresight enhances strategic planning and helps minimize future surprises.
Assess the impact Analyze how each factor might affect your business operations, market position, competitiveness, and overall strategy. Prioritize the factors in each column based on their significance to your organization.
Involve stakeholders Capture input from key stakeholders — both internal and external. Consider conducting interviews, surveys, or workshops to gather diverse viewpoints and ensure a more holistic understanding of the external environment.

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