MODULE 2 – PESTEL External General Environment Analysis

I. CLIENT BELONGS TO

. operates in the building and construction industry. The industry covers a wide range of
activities relating to the design, planning, and construction of buildings and infrastructure.
's business clients in this industry are companies and professionals involved in all aspects
of designing, building, and construction. This includes architectural and interior design firms,
real estate developers, contractors, suppliers of building materials, government agencies involved
in building and urban planning, educational institutions offering architecture and engineering
programs, and other service providers related to the industry.

II. EXTERNAL FACTORS THAT HAVE RELEVANCE AND MAJOR IMPACT ON

ITS INDUSTRY /SEGMENT

POLITICAL ANALYSIS
Opportunities in the Industry Threats in the Industry
The Philippine government has prioritized The country’s political situation affects the
infrastructure development across the nation. construction sector because of the recent
changes in administration as some projects
have been delayed or scrapped as a result of a
change in political agenda.
Growth rates are seen across various sectors Government officials accepting bribes or
of the construction industry, specifically engaging in other corrupt practices.
industrial buildings due to the booming
logistics and warehousing market.

SOCIO-CULTURAL ANALYSIS
Opportunities in the Industry Threats in the Industry
More and more women are joining the The construction sector is perceived to be a
engineering and construction industry. male-dominated industry in the Philippines.

Urbanization in the country can lead to the Lack of skilled labor contributes to delays in
construction industry being active since project completion and issues with quality
infrastructure needs to be built for control.
urbanization.

TECHNOLOGICAL ANALYSIS
Opportunities in the Industry Threats in the Industry
New technologies like BIM software and Technology requires significant investment
artificial intelligence can improve working and training costs.
conditions and enhance health and safety
measures.
 MODULE 2 – PESTEL External General Environment Analysis

TECHNOLOGICAL ANALYSIS
Technology allows contractors and project Using technology can also raise concerns
managers to make more timely and informed about data security, there is always a risk
decisions based on cost and labor data. that this information could be compromised
somehow.

ECONOMIC ANALYSIS
Opportunities in the Industry Threats in the Industry
Investment pledges gained from the A high inflation rate of building and
President’s tie-ups with various governments construction materials.
(ASEAN and European) and business sectors
abroad.
Investment projects such as the Flagship Increasing labor costs.
infrastructure projects of the Philippine
government in partnership with private
sectors.
Projected generation of job opportunities Increasing demand for highly skilled workers
relative to the building and construction abroad which directly competes and drains the
industry. internal manpower reserves.
High interest rate on loans.

LEGAL ANALYSIS
Opportunities in the Industry Threats in the Industry
Possible tax deductions or tax exemptions for Environmental laws and policies are not
individuals or business entities that directly strictly enforced.
benefit the general public.
Passage of helpful and useful laws that will Lack of strong policies against corrupt
lessen or remove bureaucratic government officials who accept bribes that
roadblocks/hindrances for the speedy and make local and foreign investors lose interest.
efficient implementation of beneficial
infrastructure projects.

II. STRATEGIC RELEVANCE OF ENVIRONMENTAL CHANGES AND TRENDS

BEST OPPORTUNITIES
Technological Use of (online) By using the Subscription-based revenue
Subscription-Based model, the business client not only can leverage
Revenue its customer relationship but can also create a
steady stream of income.
 MODULE 2 – PESTEL External General Environment Analysis

Political Since the Philippine Business clients can partner with government
government has invested agencies to improve access to important
heavily in infrastructure resources and to help each other by raising
projects, this has led to visibility and credibility.
increased construction
activity.

Socio-cultural Readers focus on user Business clients can take advantage of their
experience manpower who make engaging content and
prioritize user experience.

BIGGEST THREATS
Technological Use of (online) There will be a constant need to provide new
Subscription-Based value.
Revenue High cancellation rate
Initial Sign-up Avoidance
Political Partnership with The government can influence our content.
government Too much political interference.
Socio-Cultural Poor User Experience Customers would be less likely to continue
service and may even switch to a competitor.
This can also lead to a loss of business and a
decrease in customer loyalty.