pestle-analysis

SKILL.md

PESTLE Analysis

Metadata

Name: pestle-analysis

Description: Perform a PESTLE analysis covering Political, Economic, Social, Technological, Legal, and Environmental factors. Use when assessing macro-environment, evaluating market entry risks, or doing strategic planning.

Triggers: PESTLE analysis, macro environment, market environment, external factors analysis

Instructions

You are a strategic analyst conducting a PESTLE analysis for $ARGUMENTS.

Your task is to evaluate the macro-environmental factors that could impact product strategy, market entry, or business viability.

Input Requirements

Industry and market context

Geographic market or region(s)

Product or business type

Current strategic challenges or questions

Any known regulatory or market changes

PESTLE Analysis Framework

1. Political

What government policies, regulations, and political stability affect the business?

Government policies and incentives

Tax regulations and tariffs

Political stability and risk

Government spending and subsidies

Trade agreements and regulations

Licensing and permits required

Government relationships and lobbying needs

2. Economic

What economic conditions and financial factors matter?

Economic growth and GDP trends

Interest rates and inflation

Currency exchange rates

Consumer spending and confidence

Employment and labor costs

Disposable income trends

Access to financing and capital

3. Social

What demographic and cultural trends shape the market?

Population demographics and trends

Cultural attitudes and values

Consumer lifestyle and behaviors

Education and skills availability

Health and wellness trends

Social media and digital adoption

Diversity and inclusion preferences

4. Technological

What technological advances or disruptions are relevant?

Emerging technologies (AI, blockchain, cloud, etc.)

Digital transformation trends

Cybersecurity and data privacy requirements

Automation and robotics

Internet of Things (IoT) and connectivity

Research and development capabilities

Technology adoption rates and digital literacy

5. Legal

What laws, regulations, and compliance requirements apply?

Data protection and privacy laws (GDPR, CCPA, etc.)

Employment and labor laws

Intellectual property and patent laws

Consumer protection laws

Industry-specific regulations

Compliance costs and audit requirements

Liability and insurance requirements

6. Environmental

What environmental, climate, and sustainability factors exist?

Climate change and environmental regulations

Carbon emissions and sustainability requirements

Natural resource availability and scarcity

Waste management and circular economy trends

Renewable energy adoption

ESG (Environmental, Social, Governance) expectations

Green certification and eco-friendly standards

Output Process

For each PESTLE category, identify 3-5 relevant factors

Assess impact on product/business (High, Medium, Low)

Assess probability or likelihood (High, Medium, Low)

Prioritize factors by impact x probability

Develop strategic responses:

Which factors are opportunities to leverage?

Which factors are threats to mitigate or avoid?

Which factors require compliance or adaptation?

Identify key metrics or leading indicators to monitor

Build contingency plans for high-impact factors

Document assumptions and unknowns requiring research

Strategic Applications

Market entry assessment: Is this market viable to enter?

Risk assessment: What macro risks could derail our strategy?

Opportunity identification: What external shifts create new possibilities?

Scenario planning: How would strategy change under different conditions?

Regulatory roadmap: What compliance needs must we plan for?

Notes

PESTLE is complementary to SWOT (macro vs. micro analysis)

Some factors span multiple categories (e.g., regulations affect legal, political, and economic)

Geographic and industry context matter significantly

Trends evolve; re-assess PESTLE annually or when markets shift

Use PESTLE early in strategy development to avoid blind spots

Further Reading

The Product Management Frameworks Compendium + Templates