It is important to use the PESTLE and Five Forces Technique together for analysis as it helps to get a detailed picture of the situation that an organization faces.
Both PESTLE / PEST and Porter’s Five Forces analysis provides an organization with more information about the external environment. However, using just one of the techniques may leave gaps in knowledge and understanding. The two need to be used together if an organization wants to come up with a better strategy.
The PESTLE Analysis enables to create a list of the potential issues within the macro-environment that could have implications for an organization. However, whilst understanding the macro-environment is essential for developing strategy it only gives half of the picture.
One also needs to have a thorough understanding of their competitors and the impact they can have on the organization. To get this knowledge, one needs to conduct Porter’s Five Forces Analysis as well.
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