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PESTEL Analysis of a Country - United States

The PESTEL analysis is an analysis that aims to cover all the political, economic, social, technological, ecological and legal elements which are likely to have an influence on a market, a sector, a company or even a country. Our PESTEL analysis focuses on the United States. We will, therefore, see in turn the different factors that can have an impact on this country.

PESTEL Analysis of a Country - United States

Credit Photo : Unsplash James Balensiefen

 This is the PESTEL Analysis of the US.

Political factors

There are many political factors that can influence the United States. For example, political stability, the political party of the American president in power and the possible influence of the opposition, internal political relations, international relations with Europe or with China. The customs barriers put in place with China, or the American intervention at the origin of the French submarine crisis with Australia, are some notable examples. Political decisions can also be made in matters of immigration, especially given the proximity of Mexico and the many migrants who try to cross the border. We must also think about the political decisions related to the COVID crisis and its management, such as the vaccination made compulsory throughout the private sector, in New York State, at the beginning of December 2021 or the border closures that have occurred for many months during the pandemic.

Economic factors

Economic factors that may have an impact on the United States are, for example, the keyrates set by central banks, which influence the dynamism of the economy and household consumption in particular, as well as loans made in real estate. We can also think of the unemployment rate or the employment rate of the active population, the household savings rate, possible inflation. We can, of course, also cite the growth rate of the Gross Domestic Product and the corporate investment rate. All of these are important factors that impact the country as a whole.

Social factors

Changes in the habits of Americans and other citizens are likely to impact the United States significantly. The rise of teleworking during the pandemic and its continuation throughout 2021 is a prime example. This leads to cascading reactions and numerous impacts at different scales (fuel consumption, clothing expenses, restaurant expenses, etc.). Another example is the rise of the VEGAN or vegetarian movements. This changes the habits of consumption, equipment, businesses, etc. We can also think of the transgender movement that has had a profound impact on the sociology of the population.

Technological factors

Several technological factors are likely to significantly impact the United States. These include the development of 5G technology and its market penetration, the democratization of access to space and the development of space tourism made possible by a reduction in the costs associated with space travel, in the rate of equipping the population with mobile phones and the explosion of the digital economy, the development of contactless payments, for example.

Ecological factors

The ecological factors that can influence the United States are all those relating to the awareness and massive development of the problems of protecting the planet, in particular, through the COP26, initiatives of recycling, reuse, promotion of second-hand items, waste reduction, bulk sales. This creates new growth levers for the United States, stimulates the economy of this sector that is supported and strengthens the growth of the United States on a global scale.

Legal factors

Several legal factors can impact the United States in a significant and lasting way. These include new anti-cartel laws, laws on the fight against unfair competition, new regulations on the protection of consumers and their personal data, laws against school or professional harassment. We can also think of the evolution of laws on subjects such as the voluntary termination of pregnancy or the death penalty, which still differ according to the States, in the United States, and can be important subjects of changes and debates nationwide. Likewise, all the laws concerning the carrying of arms are likely to disrupt the country in depth.

The United States is one of the world's foremost powers. They are very strongly impacted by many factors, internal or external, which constantly modify the balances found and implemented in political, economic, social, technological, ecological or legal matters. The diversity of American states and their autonomy in terms of political management, education, the health system, the carrying of arms, the protection of women and children, or even the management of unemployment, make it a difficult country to consider as a harmonious whole in terms of PESTEL analysis. It, therefore, seems essential to take an interest in state specificities and, in particular, those concerning large cities and the capitals of certain states.

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