PEST Analysis Example
Problem Statement
Create a PEST model for one of the products that is launched by your company. Investigate all the opportunities and threats for this product using the PEST model.
How to perform analysis
Open Sigma Magic
- Click on the Sigma Magic button on the Excel toolbar.
- Click on the New button to create a new project.
Step 2: Add the analysis template
- Click on the Tool Wizard to add the analysis template.
- Click on Change and then PEST Analysis.
Step 3: Specify analysis options
A new worksheet will be added to your workbook. Analysis Setup will be automatically opened, in the setup tab specify the following details.
Step 4: Enter the Worksheet data
Click on Create button to save all changes and compute the outputs for this analysis.On the worksheet, enter the following details. A sample worksheet is given below:
Click on Analysis Setup and then click on the Checklist button, you will see the following dialog box. Ensure that the items mentioned in checklist should be marked.
Step 5: Generate analysis results
Finally, click on Verify tab to ensure all the inputs are okay and shown in a green checkmark.
Click OK to close the dialog box.
Interpreting Results
Risk of violating local laws and regulations
→ It means that the business or software should adhere to the regional laws and regulations. This may result in legal problems, fines, or limitations.
Consumer belief in the outcomes of the analysis
→ When the users are confident about the results of the software, they would buy or recommend it, thereby increasing sales and adoption.
Impact of economic growth on the sale of software
→ Economic conditions affect purchasing power. In a booming economy, firms can spend money on high-end analysis tools, increasing revenue. In recessions, cutting costs can lower demand.
Social image of using commercial packages
→ There could be an assumption that commercial analysis tools are more trustworthy than free/open-source versions. But negative public perception, such as price sensitivity, can deter adoption.
New technologies can disrupt incumbent players
→ Emerging innovations such as AI-driven analytics or cloud-based platforms could make the current solutions obsolete and thus necessitate adaptation to maintain market position.
Password protection is not secure and can be broken
→ Security vulnerabilities are risks to user trust and data privacy. Weak protection mechanisms might lead to hacking incidents, data breaches, or legal consequences.
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