Professional Documents
Culture Documents
ON RETAIL INDUSTRY
PESTL Analysis
PESTEL is an acronym that stands for Political, Economical, Social, Technological and Legal. It
is used to describe an analysis that is used for determining the opportunities and risks of global
expansion. Sometimes it is described as a PEST or PESTLE analysis.
Political, Economical, Social, Technological and Legal issues often differ domestically and even
more so internationally. As a company looks to leverage the advantages that the democratization
of technology, information and finance, and grow beyond the national borders that previously
confined them, it is imperative that they consider a PESTL analysis to accompany their SWOT
analysis.
The PESTL analysis provides a strong framework used by global and multinational corporations
to set the stage to develop specific tactics to mitigate the risks involved in executing their vision
in unfamiliar environments.
Below is a bulleted list of some things to consider when writing a PESTL Analysis.
Political
Bureaucracy
Corruption
Environmental Law
Government Type
Government Stability
Labour Law
Political Change
Political Stability
Regulation/Deregulation (NTB)
Social/Employment Legislation
Tariffs
Tax Policy
Trade Restrictions
Economic
Economic Growth
Exchange Rates
GDP Growth
Globalisation
GNP Growth
Interest Rates
Labor Costs
Labor Supply
Unemployment Rate
Social
Health Consciousness
Age Distribution
Career Attitudes
Perception of Safety.
Educational Infrastructure
Social Mobility
Employment Patterns
Attitudes to work
Cultural Taboos
Technological
Degree of Automation
Emerging Technologies
Technology Incentives
Technology Transfer
Legal
Antitrust Law
Consumer Law
Discrimination Law
Employment Law
important participants in the Indian Retail sector are Bata, Big Bazaar, Pantaloons, Archies, Cafe
Coffee Day, landmark, Khadims, Crossword, to name a few.
Economical1. The Indian consumers bahaviour pattern has changed. Now the Indian consumer gets
more hefty packages, is younger, a large number of women are working, western
influences and more disposable income have opened a lot of opportunities in organized
retail sector.
2. The Indian consumer wants to shop, eat and get entertainment in one place and is have
given Indian organized retail sector.
Social1. Corporate Social Responsibility- A retail company should have some CSR, because a
company also have some fundamental duties which are suppose to be performed. In CSR
a company can conduct certain activities ex- donation and cause related marketing.
the direct objective of CSR is not to make an immediate profit. Rather, CSR activities
aim to build store image and trust, which hopefully contributes to long-term profits.
2. Health and safety- Now people are more concerned about their health, they prefer those
product which healthier instead of cheap. So, it is a duty of a retail company to provide
more safe and healthy product to the consumer and to check carefully about the
adulteration of food products.
Legal1. On the proposal of making multi brand FDI legal in India, the small vendor agitated allot
on this proposal. Small level vendor contended that it amounts to the violation of their
fundamental right 19(1)(g) provided by Indian constitution, which gives them freedom to
practice any trade and commerce in India. They argued that the big retail companies will
totally capture the market and it will become difficult for them to survive.