PESTLE Analysis

 PESTLE analysis:
A PESTLE analysis is a strategic management tool used to detect, investigate, establish, and
display key external factors that can have an effect on an organization now and in the future. The
structure examines opportunities and threats due to Political, Economic, Social, Technological,
Legal and Environmental forces, to inform planning and decision-making.
The framework:
 Encourages strategic thinking and helps you evaluate how your strategy fits into the larger
environment
 Provides an overview of the major external effects on the organization.
 Allows leaders to make more significant and expert decisions.

PESTLE Analysis of Uber

COMPANY PROFILE: Uber technologies.

Business Sector: Transportation.
 Political factors:
Within PESTEL analysis, political factors exert a strong influence on the long-term sustainability
and profitability of Uber.
 Changing policies:
Regular changes in government policies harm business performance by increasing environmental
doubt. It is important for Uber to study the current trends in the country's political scenario as
changes in government may change the government's priorities towards the development of
different industries.
 Bureaucracy and corruption:
Bureaucracy and corruption negatively influence the business environment. Operating in
countries with high corruption level and weak law administration makes the business
environment increasingly irregular for Uber.

 Economic factors

It is important for Uber to understand economic factors such as foreign exchange/interest rate,
labor market conditions, inflation and saving rates etc. as they determine the overall economic
environment of the country.

 Inflation:

The GDP growth rate will determine the Uber’s ability to follow its long-term growth strategies.
High GDP also signals the consumers’ ability to spend more on offered products.

 Labor market conditions:

The demand and supply of labor determine the wage rates and supply of skilled workforce. Uber
must study and predict the labor market conditions to understand how it can attract talented
workers and control their skills to improve business performance.