A PEST analysis is an analysis of the external macro-environment that affects all firms.P.E.S.T is an acronym for the political, Economic, Social and Technological factors of the external macro-environment. It is very important that an organization considers its environment before beginning the marketing process. In fact, environmental analysis should be continuous and feed all aspects of planning.
The organization's marketing environment is made up of:
The internal environment e.g. staff (or internal customers), office technology, wages and finance, etc.
The micro-environment e.g. our external customers, agents and distributors, suppliers, our competitors, etc.
The macro-environment e.g. Political (and legal) forces, Economic forces, Sociocultural forces, and Technological forces. These are known as PEST factors.
How to write a good PEST analysis?
PEST analysis incorporates four perspectives, which give a logical structure, providing clear presentation for further discussions and proactive decision-makings. In writing a good PEST, subject should be a clear definition of the market being addressed, which might include the following issues of:
* a company looking at its market
* a product looking at its market
* a brand in relation to its market
* a local business unit
* a strategic option, such as entering a new market or launching a new product
* a potential acquisition
* a potential partnership
* an investment opportunity
Before producing a good PEST analysis, it is of primary importance to, firstly, brainstorm the relevant factors that apply to the company or to its business environment. Second requirement is to identify the information that applies to these factors; and thirdly, to draw conclusions from this information. It is, however, necessary not only to describe factors, but to think through what they mean and how they impact the business. PEST analysis is only a strategic starting point, and has its own limitations, emphasizing the need to test the conclusions and findings against the reality.
Technical factors the influence industry:
Networks are one of the most technical aspects of any country and the technological changes affecting the networks have changed considerably, since the first & last landline company PTCL was introduced in Pakistan.
Ufone is also a product line of PTCL. Its promoter, the GSM Association, estimates that 42% of the global mobile markets use the standard. Its ubiquity makes international roaming very common between mobile phone operators, enabling subscribers to use their phones in many parts of the world. GSM differs from its predecessors in that both signaling and speech channels, which are digital, and thus is considered a second generation. (2G) mobile phone system. This has also meant that data communication was easy to build into the system. GSM also pioneered the short message service (SMS), which is now supported on other mobile standards as well; Most GSM networks operate in the 900 MHz or 1800 MHz bands.