Published by MBA Skool Team, Last Updated: March 13, 2021
PESTLE Analysis of Orange analyses the brand on its business tactics. Orange PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand.
PESTLE analysis is a framework which is imperative for companies such as Orange, as it helps to understand market dynamics & improve its business continuously. PESTLE analysis is also referred to as PESTEL analysis.
The political factors in the Orange PESTLE Analysis can be explained as follows:
Orange is one the most prominent telecom companies based out of Europe. Political factors play an important role in impacting the company’s long-term profitability in any country or its market. This company is operating in telecom services in many international markets and gets influenced by different political situations in different countries. The political stability in any country affects its operations. Even the taxation system and incentives imposed by governments has a severe impact on the revenue generated. Even the roaming and porting regulations handled by government has a role to play in the operating business of Orange.
Below are the economic factors in the PESTLE Analysis of Orange:
The economic factors such as GDP and the policies in the telecom sector set up by the government affects the overall business strategy of Orange.
As inflation rises, people have a tendency to cut their spending and this leads to decrease in profits for the company. Other macro-economic factors such as saving rate, interest rate, foreign exchange rate and economic cycle decides the overall demand and investment in a market. The company and its competitors in the industry have their own strengths, weaknesses and their Unique selling propositions for consumers. It is important to scan the economic conditions properly to decide on buying telecom spectrum and understand the market demand and the gaps to fill in.
Following are the social factors impacting Orange PESTLE Analysis:
Society and its culture have a very impactful role to play in people’s choice and decisions. It is important for Orange to understand the shared beliefs and attitude of consumers in order to decide on its functional as well as overall business strategies. The demographics in different locations such as age, gender, education level impacts the choices and buying decisions. The hierarchy, power and class structure in the society is a very important social factor to be considered by the company in its marketing message and promotional decisions. The changing work pattern with the COVID-19 pandemic, telecom industry has undergone a major shift. It becomes essential for Orange to understand the whole scenario and work upon it accordingly. The word-of-mouth marketing by loyal customer base impacts the buying decisions, hence it is important to leverage this marketing by delivering good services and support.
The technological factors in the PESTLE Analysis of Orange are mentioned below:
With the fast-pacing technological changes in the telecom industry, it is imperative for Orange to adapt and take the first mover advantage in this race. As 5G technology and a lot of new research is happening to make telecom sector more efficient in the coming future. It has an opportunity lying in this space to become more reliable and stand number one among its competitors in the industry.
Technological innovations and telecom go hand in hand; hence the brand need to spend and invest more in research and development and needs to compete with alternative innovations like internet-based companies like Skype, Zoom and many more to boost its market share.
Following are the legal factors in the Orange PESTLE Analysis:
The legal system and institutions are not robust enough in many countries to protect the intellectual property right of an organization. It becomes important for companies like Orange to evaluate properly the laws and regulations of an operating country as well as for those countries where it is planning to get launched. Some of the legal factors which it should consider in any market are consumer protection and anti-trust laws in telecom industry. Even the Health and Safety laws, discrimination laws are vital for the telecom company to consider. Intellectual property laws and data protection laws also impacts the operation of Orange in a country.
In the Orange PESTLE Analysis, the environmental elements affecting its business are as below:
It is important for Orange to consider the environmental rules and regulations in an operating country. The drastic climate change is influencing governments in different nations to form environmentally friendly policies. The tax benefits and incentives are sometimes given to organizations working in this direction. It should manage its operations properly to get benefitted with such policies and laws.
For e.g., Proper disposal of e waste management and recycling. Even the involvement and support in renewable energy is catching up amongst a lot of its competitor companies. Hence, it is important for the telecom operator to take this opportunity to handle its cost in most eco friendly manner and attract customers with offering this value.
To conclude, the above Orange PESTLE Analysis highlights the various elements which impact its business performance. This understanding helps to evaluate the criticality of external business factors for any brand.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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