In order to perform the industry analysis, we used many business frameworks such as: To identify the worst performer in the industry, the key metrics we measured are the number of subscribers both print and digitalsubscription revenue, advertisement revenue, mobile views and subscribers, and market share. USA Today, which is the only major player with both a recent loss of subscribers and a relatively poor digital experience, is identified as the worst performer in the industry. This strategy makes sense for USA Today not only because it will increase profits, but also because its reader base relies on USA Today for headlines rather than in-depth stories, making it more compatible with a digital experience.
The "radical and ongoing changes occurring in society create an uncertain environment and have an impact on the function of the whole organization" Tsiakkiros, A number of checklists have been developed as ways of cataloguing the vast number of possible issues that might affect an industry.
A PEST analysis is one of them that is merely a framework that categorizes environmental influences as political, economic, social and technological forces. Sometimes two additional factors, environmental and legal, will be added to make a PESTEL analysis, but these themes can easily be subsumed in the others.
The analysis examines the impact of each of these factors and their interplay with each other on the business. The results can then be used to takeadvantage of opportunities and to make contingency plans for threats when preparingbusiness and strategic plans Byars, ; Cooper, Kotler claims that PEST analysis is a useful strategic tool for understanding market growth or decline, business position, potential and direction for operations.
The use of PEST analysis can be seen effective for business and strategic planning, marketing planning, business and product developmentand research reports.
PEST is useful when a company decides to enter its business operations into new markets and new countries. The use of PEST, in this case, helps to break free of unconscious assumptions, and help to effectively adapt to the realities of the new environment.
Main Aspects of PEST Analysis Economic conditions affect how easy or how difficult it is to be successful and profitable at any time because they affect both capital availability and cost, and demand Thompson, If demand is buyout, for example, and the cost of capital is low, it will be attractive for firms to invest and grow with expectations of being profitable.
In opposite circumstances firms might find that profitability throughout the industry is low. The timing and relative success of particular strategies can be influences by economic conditions. When the economy, as a whole or certain sectors of the economy, are growing, demand may exist for a product or service which would not be in demand in more depressed circumstances.
Similarity, the opportunity to exploit a particular strategy successfully may depend on demand which exists in growth conditions and does not in recession. Although a depressed economy will generally be a treat which results in a number of organizations going out of business, it can provide opportunities for some Robinson and et al.
Economic conditions are influenced by political and government policy, being a major influence affecting government decisions. The issue of whether European countries join, or remain outside, the single European currency is a case in point.
At any one time either exported or imported goods can seem expensive or inexpensive, dependent upon currency exchange rates. There are many other ways, however, in which government decisions will affect organizations both directly and indirectly, as they provide bothopportunities and threats.
While economic conditions and government policy are closely related, they both influence a number of other environmental forces that can affect organizations. Capital marketsdetermine the conditions for alternative types of funding for organizations.
They tend to be a subject to government controls, and they will be guided by the prevailing economic conditions.
The rate of interest charged for loans will be affected by inflation and by international economics and, although the determining rate may be fixed by a central bank, as it is the case with the Bank of England, that will also be influenced by stated government priorities.
According to Thompsongovernment spending can increase the money supply and make capital markets more buoyant. The expectations of shareholders with regard to company performance, their willingness to provide more equity funding or their willingness to sell their shares will also be affected.
The labour market reflects the availability of particular skills at national and regional levels; this is affected by training, which is influenced by government and other regional agencies. Labour costs will be influenced by inflation and by general trends in other industries, and by the role ad power of trade unions.
The sociocultural environment encapsulates demand and tastes, which vary with fashion, disposable income, and general changes, can again provide both opportunities and threats for particular companies Thompson, ; Pearce and Robinson, Over-time most products change from being a novelty to a situation of market saturation, and as this happens pricing and promotion strategies have to change.
Similarly, some products and services will sell around the world with little variation, but these are relatively unusual. Organizations should be aware of demographics changes as the structure of the population by ages, affluence, regions, numbers working and so on can have an important bearing on demand as a whole and on demand for particular products and services.
Threats to existing products might be increasing: Technology is widely recognised by various literature on strategic management Capron and Glazer, ; Johnson and Scholes, ; Jan,as part of the organization and the industry part of the model as it is used for the creation of competitive advantage.
However, technology external to the industry can also be captured and used, and this again can be influenced by government support and encouragement. Technological breakthroughs can create new industries which might prove a threat to existing organizations whose products or services might be rendered redundant, and those firms which might be affected in this way should be alert to the possibility.
Equally, new technology could provide a useful input, in both manufacturing and service industries, but in turn its purchase will require funding and possibly employee training before it can be used.
How to Write a Good PEST Analysis As it was discussed above, PEST analysis incorporates four perspectives, which give a logical structure, providing clear presentation for further discussions and proactive decision-makings.
In writing a good PEST, subject should be a clear definition of the market being addressed, which might include the following issues of: Before producing a good PEST analysis, it is of primary importance to, firstly, brainstorm the relevant factors that apply to the company or to its business environment.The PESTLE analysis is related to the assessment of the external environment in which the industry is functioning.
This analysis will assess the impact of the political, economic, social, technological, and legal factors on the industry. What is PEST Analysis?
PEST is an acronym for Political, Economic, Social and Technological. This analysis assesses these factors in relation to a business. PESTLE - Macro Environmental Analysis. The PESTLE Analysis is a framework used to scan the organization’s external macro environment.
The letters stand for Political, Economic, Socio-cultural, Technological, Legal and urbanagricultureinitiative.com approaches will add in extra factors, such as International, or remove some to reduce it to PEST. PEST Analysis is a simple and widely used tool that helps you analyze the Political, Economic, Socio-Cultural, and Technological changes in your business environment.
This helps you understand the "big picture" forces of change that you're exposed to, and, from this, take advantage of . Travel and tourism industry has been considered as one of the world’s best and dynamic industry being second largest export commodity.
There are certain dynamic factors that need to be understood in order to find out the future of the travel industry across the whole globe.
PESTLE analysis on wine industry. Constellation Brands, E&J Gallo Winery, and Wine Group are amongst the three top producers of Wine in the United States.