PESTL Model

pestal model , basically talks about the analysis of a potential country or region on various domain for your product or business. It is a analytic approach to develop the marketing strategy or investment strategy, In the country or region to minimize the risk of failure. PESTL model consist five external environment factors which can affect the business are:-

Political 

Economical

Social

Technological

Legal

Political : - 

The political Environment of the country create a lot impact on the investment . one must carefully examine the political environment of the country in reference to the business and product . These factors determine the extent to which a government may influence the economy or a certain industry. [For example] a government may impose a new tax or duty due to which entire revenue generating structures of organizations might change. Political factors include tax policies, Fiscal policy, trade tariffs etc. that a government may levy around the fiscal year and it may affect the business environment (economic environment) to a great extent.

Economical  :-

Economical factor is the main drift for the business houses to target a country/market, hence it is very critical for business to examine the economical aspects of the country, which are nature of economy, GDP , GDP per capita , Inflation Rate, Growth Rate, Demand and Supply pattern etc.

Social :-

These factors scrutinize the social environment of the market, and gauge determinants like cultural trends, demographics, population analytics etc. for example, buying trends for Western countries like the US where there is high demand during the Holiday season and the High demand of gold during the marriage season in India.

Technological :-

These factors pertain to innovations in technology that may affect the operations of the industry and the market favorably or unfavorably. This refers to automation, research and development and the amount of technological awareness that a market possesses. for example if 3G enabled handset showing good return in India then it doesn't implicate that it will show same return in  US. Cause US is already using  4G enabled handset. but if we launch same 3G enabled handset to Bangladesh, Sri-lanka, Afghanistan  or some of other technologically backward countries then it is more favorable there.

Legal :-

These factors have both external and internal sides. There are certain laws that affect the business environment in a certain country while there are certain policies that companies maintain for themselves. Legal analysis takes into account both of these angles and then charts out the strategies in light of these legislations. For example, consumer laws, safety standards, labor laws etc