3 min read
Have You Considered a PEST Analysis? You Should.
By: Kristin McLane April 1, 2020 at 10:00 AM
It’s rare to say “you should” to someone until you really know their circumstances. Even then, I would suggest you should only do so when given permission. It is stronger to share experiences that remind you of a time that you faced a similar situation and got through, no matter the result. This Gestalt mindset provides just the right atmosphere for anyone to learn.
For the purposes of today’s conversation, however, Gestalt doesn’t play a main concern. That’s why we say that if you haven’t done a PEST analysis, you should. There are few times in history where this type of analysis might actually yield such dramatic results for so many.
This is a type of SWOT (strengths, weaknesses, opportunities and threats) analysis for a business, focused on the:
- Socio-cultural and
- Technological changes in the business environment.
As we write this blog, 17,000 people in the world have died from this pandemic while more than 392,000 have been confirmed in at least 177 countries and territories. The economic, socio-cultural and technological changes that are being brought about daily through this illness are staggering. How will it affect you and your market? (Remember here that your market is the total pool of people that might buy the product or service that you offer.)
Politically, plenty may be judged on their handling of the global and local situation. Where some have stepped up and into great leadership, others may be seen as having been vacant. There are those that will rise to meet the need and others who will fold, tired.
How will that affect you? Will a shift in power result in more customers for you? (Especially if you sell into the public sector, there may be plenty more or less opportunity for you in the coming months.) Is the legislation that is being passed right now to help those in need and to protect people something that will carve new opportunities and niches for you, or will it dry up opportunities that you currently have as they shift their spending?
Regulation is a critical concern here. How does increased or decreased regulation affect your business model?
Economic factors will be moving and changing for a long time. We are already experiencing rolling 2- to 4-week lockdowns. In December of last year, was that even something you would have thought of? In the economic cycles of a PEST analysis, you might also consider how much income or access to credit your possible customers have. At a macro-level, consider whether the general economic conditions
In the socio-cultural arena, look at the population, generation, health, education, employment and wealth attributes of your customer population. Are they getting better or worse? How do these trends make it easier (or more difficult) for you to win new business? All other considerations aside, the current events will have the net effect of making some businesses grow dramatically while others shrink and fade. How do you firmly place your products and services on the winning side of that curve?
Lastly, look at the technological changes in the world. In the service era that saw everything from food to dry-cleaning and laundry delivered to your house, your work or even your gate at the airport, there are plenty of technology platforms for people to use as they practice remote work. How will these shift and change as things start to go back to normal?
There is just no going back that more people probably know about and have made use of portals, platforms and applications that make remote life possible. Once the bans are lifted, it is anyone’s guess as to how much will normalize back and how many permanent changes have been written into our society’s fabric.
The question that we’re asking is how will you use those changes to make you and what you do more profitable, stronger and more appealing?
In 2020, we are rolling out meaningful tools for manufacturers that are affordable, on-target and competitive. We are also expanding our educational offerings.
We believe in the critical importance of manufacturing right here in North America and we work hard to keep you working. Ask us questions; you will find that we are far more reachable than other software providers you may partner with. We are here to help you find the right tools and use them, whether it's a Google doc, an Excel sheet or a Production Control system. To learn more about meeting your targets for 2020 or just getting a question answered, visit us at www.cimx.com.
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