How to Use Pestel to Analyse the Chinese E-Commerce

So the topic of our presentation today is using PESTEL to analyze Chinese e-commerce. Basically, the presentation will be divided into four parts.

First, I’ll introduce some background information; what is PESTEL analysis, how it works and give you the conditions of Chinese e-commerce. Then my partner xxx will talk about two elements P for politic and E for economic aspects of Chinese e-commerce. Next, xxx will continue looking at another two factors; S for social and T for technology and finally the xxx will focus on E for environment and L for legal factors and give conclusion at last.

All right, let’s begin. What is PESTEL analysis? PESTEL analysis is a method for analyze the factors of macro-environment, which stands for - Political, Economic, Sociological, Technology, Legal and Environment. It is a useful strategic tool for understanding different environments, which these factors can directly affect the profits. It means individual business and organization use the six elements to guide strategic decision-making, taking the advantage to maximize the opportunities and minimize the threats. Conducting a strategic analysis needs to look over these elements to distinguish and understand the broad and long term trend. Once these environmental factors are identified and analyzed, organizations are in a better position to plan an effective strategy to meet their objectives and minimize any errors.

As we know, with the increasing number of internet users, Chinese business develop fast and Chinese e-commerce has many potential business opportunities. E-commerce, is the buying and selling of products and services through an electronic medium.