The PESTEL analysis is a descriptive method used to know the context of a company. It seeks to delve into the elements that surround a business, for example: economic, political, environmental, sociocultural, psychological or legal aspects. It helps to identify opportunities and threats in the market and to develop an appropriate market entry strategy.
The use of PESTEL analysis allows an evaluation of the perspective, growth and direction of the operations of a company. With this, it identifies the external elements that may affect both the present and the future of its operations.
The result of the analysis will serve to detect threats and weaknesses
Before entering the automobile market, Tesla conducted a PESTEL analysis to assess political, economic, social, technological, environmental, and legal influences on the automobile market. This helped them identify opportunities in the market, such as increased concern for the environment and increased interest in electric vehicles. It also allowed them to identify threats, such as resistance from traditional car manufacturers to the entry of a new competitor into the market.
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