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Technological Factors in a PESTLE Analysis.
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Technological Factors in a PESTLE Analysis.

Explore technological factors in a PESTLE analysis.

Technological factors include production techniques, information and communication resources, production, logistics, marketing, and e-commerce technologies.

These affect how an organisation operates, sells its products, interacts with, and gathers intelligence on customers, suppliers, and competitors.

Cutting-edge Technologies

Although political factors are hugely significant in the PESTLE analysis, cutting-edge technologies are the ultimate game changer in the macroenvironment, as they can create new markets and customers, as well as decimate them. Particularly significant technologies include quantum artificial intelligence, edge computing, non-opioid pain management, 5G connectivity, net-zero buildings, and longevity boosters to combat ageing and age-related diseases.


Since 2012, scientists have explored the application of Clustered Regularly Interspaced Short Palindromic Repeats (CRISPR). This technology can enable parents to design bespoke babies by selecting the eye colour, height and other attributes of their unborn children. Beyond DNA manipulation, CRISPR may also revolutionise how big problems like cancer, food shortages and disease diagnoses are tackled.

The Growing Importance of Technology

Technology is almost always the secret ingredient in a company’s tipping point, and it is no surprise that today’s most valuable firms – Facebook, Amazon, Netflix, Google and Apple – have technology at the heart of their value proposition. In order to not be left behind, companies like Goldman Sachs, JP Morgan Chase and Shell now prefer to identify as technology companies, even though their processes, systems and markets are not compellingly so.

Example – Amazon

Amazon’s relentless foray into new markets is singlehandedly driven by technology and big data analytics from customer behaviour. The company has conquered retail, is reinventing tabloid through the Washington Post, has invested in space exploration (Blue Origin) and it’s only a matter of time before it delivers residential homes, following its partnership with Lennar. All of this diversification has been enabled primarily by technology.

The key questions to ask here are:

  • What technological advancements and innovations are available, or on the horizon?
  • How will these technologies impact on our operation?
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