PESTEL ANALYSIS OF ARGENTINA

INTRODUCTION

A PESTEL analysis is a strategic management tool that helps organizations understand and
evaluate the external macro-environmental factors that can impact their operations. PESTEL
stands for Political, Economic, Social, Technological, Environmental, and Legal factors. In
the context of Argentina, let's focus specifically on the technological aspect:

Pestle analysis of Argentina. The Argentina Republic is a South American country. It shares
the border with the South Atlantic Ocean, Uruguay, Brazil, Paraguay, and Bolivia. Buenos
Aires is the capital of Argentina.

The total area of Argentina is 1,073,500 square miles, and it’s the world’s 8th largest country
in terms of size and area. Approximately more than 44,938,712 people are populating the
country, and it’s the 31st world’s most populated country.
Modern-day Argentina’s history dating back to the Paleolithic period, the western Spanish
colonist invaded the country in the 16th century. Argentina declared its independence from
the Spanish crown on July 09, 1816, but the civil war ended in 1861.

Argentina used to be the world’s richest country in terms of high GDP and per capita income
from the late 19th century to the early 20th century. 1930s great depression, political
instability, and economic crisis pushed her into the underdeveloped countries. However, she
maintained her position in the world’s top 15 countries for several decades.

Today, we’ll discuss the pestle analysis of Argentina. It would focus on the macro-
environmental factors of the world’s leading developing country. Here’s the pestle analysis of
Argentina as follows;

TECHNOLOGICAL FACTORS AFFECTING ARGENTINA

1 TECH GROWTH
Argentina has made significant progress both in the IT and telecom industries. It’s because of
the government investment and penetration in the country’s rural areas.

2 TECH ISSUES
Argentina is facing a severe energy crisis, and the net energy import is increasing. That’s why
the country is showing great interest in science and technology. The country has limited
funds to support research and development in the tech industry. It resulted in the form of
lower-tech innovation and limited patents.
3 TECH DEVELOPMENT

Argentina has upped its tech game and is competing well with some of the most
technologically advanced countries in the world. It is one of the best countries in the world in
technological skills such as computer networking, operating systems, human computer
interaction, databases, security engineering, and software engineering. Its universities are
very focused on developing technological skills, and the government support is very good as
well. In fact, it is a key global outsourcing centre for software development.

Online shopping in increasing rapidly, and Argentina is now the 3rd largest e-commerce
market in Latin America. Social networking sites are driving people to online shopping.
Many people like shopping through mobile devices and the trend is likely to continue in
coming years. In 2020, purchase through mobile devices was worth $5 billion which is
forecast to reach $13 billion by 2024 (Pasquali, 2021). However, one of the challenges for the
country is to keep its tech graduates in the country as many of them go abroad for better
career opportunities.

4 TECH ADVANCEMENTS

The country has made major progress in the telecom and IT sectors. It is because of the tech
development and government investment. Moreover, the government is also attracting tech
giants like Google, Microsoft, and more in order to become a tech country.

like other South American countries, Argentina is facing different tech issues and a severe
energy crisis. Its net energy import rate is climbing day by day. Due to this reason, the
country is taking aggressive steps to improve its technology and science departments.
Moreover, the country does not have resources and investments in the science and technology
sector. So, why the tech advancement and penetration are very limited in Argentina.

After an in-depth study of the pestle analysis of Argentina, we have concluded that Argentina
is indeed the world’s leading under-developing country. Higher unemployment, tech issues,
and environmental challenges are some of the main issues of the country. Argentina should
lower the taxes and inflation to attract foreign investors, it would help the country to regain
past glory.