A PESTEL REVIEW: CHALLENGES AND OPPORTUNITIES TO BE AWARE OF

To take stock of the opportunities and challenges businesses face thinking and planning is invaluable. Here Dara Keogh, CEO of GeoDirectory, takes us through the political, economic, social, technological, environmental and legal challenges he deems notew

POLITICAL

Domestically, the political environment appears to be stable with no sense of a general election in 2023 and no significant shift looking likely. On a European level, due to the Ukraine war and the impacts of Brexit on the UK, the EU is more united with deeper alignment across market activities likely to grow in the medium to long term, making it a key space to watch. The harmonisation of the corporation tax rate at 15%, something that seemed impossible two years ago, offers a good example of this deeper alignment.

ECONOMIC

The fallout of ongoing upward inflation pressures driven by the impact of the Ukraine war on energy and food prices, and the continued interruptions to the supply chain, particularly from China, is likely to continue through 2023 albeit at a lower rate of inflation of around 6%. A continued rise in both prices and interest rates is expected, changing both spending power and returns on investment and where those returns may be found, enhancing the need for expert advice.

SOCIAL

With higher inflation and interest rates we can anticipate dampened consumer sentiment. However, there’s still a large pot of savings post-Covid that, along with the various government interventions, will hopefully buffer both the economy and individuals against the worst impact of the effects. It is expected this will drive consumers to become more value/price conscious, and this awareness helps us position our business to deliver a better service.

TECHNOLOGY

Moore’s law claims ‘... that we can expect the speed and capability of our computers to increase every two years and yet we will pay less for them.’ In other words, technology is getting cheaper, faster and easier to deploy. Customers expect our technology to make life easier for them in their dealings with us. For example, 40% of all searches are now done using voice. Is your website primed for voice search? Do you make it easy for customers to enter addresses with automated populated address fields and associated information?

ENVIRONMENT

This can have two separate meanings:

1: The environment is a hot topic and while it may not close a sale, it is a differentiator that could attract attention and build both brand and organisation reputation. While repeat business is great, ‘new clients’ doesn’t sound too bad either. If you have a demonstrable green policy that cuts waste and ultimately makes your organisation more efficient, gains positive attention, makes current customers happier and attracts new ones, it is effort well spent. It can be as simple as energy-saving lights, powering down PCs in the evening or using recycle/ reusable cups for coffee/tea. Have a policy so that you have a green ethos to build on.

2: Market structure – how the market is split, spread, divided and consolidating. Basically, how long is the food chain, where are we in it and what is changing?

LEGAL

The legal framework is largely outside our control but as a trusted expert we must steer our customers away from pitfalls. This means keeping an eye on what is happening in Europe and keeping up to date with any changes.

4TH INDUSTRIAL REVOLUTION

What lies behind the PESTEL analysis is understanding data, which is often described as “the new oil”. What we don’t always realise is how much data our organisation generates and holds. GeoDirectory works with companies to help them use this existing key resource to improve their customer journey, to target in a more focused way and to run a leaner organisation. If you’d like to learn more visit www.geodirectory.ie

www.geodirectory.ie