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PESTEL Analysis Tool

Scan the outside forces in two or three markets you could enter, side by side, and rank the few that would change the answer.

The markets you could enter

Two or three is plenty. A scan of ten markets becomes a spreadsheet nobody reads.

Your starting point

Rated alongside, to show the forces you have never had to handle.
One line. Later stages use it to name options.

Growing into a new kind of customer in your own country? The outside forces are the ones you already live with, so this stage can be skipped.

Your notes never leave your browser

Market names, forces and notes stay on your computer and in your progress file. To write the diagnosis, only the ratings and the places of the forces in your list are sent to our server. How it works

About the tool

Why it exists

Find the few forces that change the answer

PESTEL scans six kinds of outside force: political, economic, social, technological, environmental and legal. Run on the markets you could enter, side by side, it shows which forces separate them and which you have never had to handle at home.

This tool works on its own, and as stage 1 of our playbook for expanding into a new market, where the ranked forces go on to Five Forces in stage 2. For the method, see our guide to PESTEL analysis.

The method

How the tool works

One grid. Forces down the side, one column per market. Each cell holds a short note, an impact (high, medium, low, or doesn't apply) and a direction (helps, hurts, or both ways).

The ranking. In each market, forces are ranked by impact; a tie keeps the order of your list. A force rated the same in every market is marked, because it doesn't help you choose between them.

The balance. Each force counts 3 when high, 2 when medium and 1 when low; one that helps adds, one that hurts subtracts. The market with the highest balance is the leaning, unless the top two are within 2 points. It weighs outside forces only: the competition in each market, judged next, can reverse it.

Home as a baseline. If you add your home market, a force that is high and against you abroad, but low or absent at home, is marked: it is one your team has never had to handle.

Suggestions. "Suggest forces people often miss" adds the names of common forces, one or two for each letter. It never rates them.

What leaves your computer. Names and notes stay in your browser and your progress file. To write the diagnosis, the page sends our server only the ratings and the places of the forces in your list, and the server keeps nothing.