PESTEL analysis can be explained as “a checklist to analyse the political, economic, socio-cultural, technological, environmental and legal aspects of the environment” (Rao et al., 2009, p.115). The framework assists with analysis of the impact of each of these individual aspects of external environment to be used in decision-making by senior management.
PESTEL analysis for Warner Bros. is illustrated on the following table:
Political
Political situation in the US and foreign markets
Censorship on media and entertainment in emerging markets
Impacts of lobbying groups in film and entertainment industry
Effects of industry pressure groups
Economical
Impact of US foreign trade deficit issue
Resign costs of advertising
Level of US unemployment
Inflation rate in the US
Changes in the US taxation system
Social
Value changes in the US and other market
Increasing influence of internet on social life
Changes in demographic challenges
Increasing importance of work-life balance
Acceptance of same-sex marriages by increasing numbers of states in the US
Technological
Increasing popularity of 3D technology
Maturation of films in DVD format
Emergence of innovative platforms to consume entertainment products
Increasing integration of IT in various stages of film production
Technological breakthroughs in film production
Ecological
Problems associated with global warming
Rising environmental concern of people globally
Increasing importance of eco-tourism and related issues
Increasing importance of corporate social responsibility (CSR)
Legal
Licensing issues with other organisations in the industry
Problems related to intellectual property
Legal barriers to enter emerging markets
Changes in the US rules and regulations in relation to films and entertainment industry.
Warner Bros. PESTEL Analysis
References
Rao, C.A., Rao, B.P. & Rao, K. (2009) “Strategic Management and Business Policy: Text and Cases” Excel Books
PESTEL analysis can be explained as “a checklist to analyse the political, economic, socio-cultural, technological, environmental and legal aspects of the environment” (Rao et al., 2009, p.115). The framework assists with analysis of the impact of each of these individual aspects of external environment to be used in decision-making by senior management.