Schneider Electric PESTLE Analysis

Published by MBA Skool Team, Last Updated: March 13, 2021

PESTLE Analysis of Schneider Electric analyses the brand on its business tactics. Schneider Electric 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 Schneider Electric, as it helps to understand market dynamics & improve its business continuously. PESTLE analysis is also referred to as PESTEL analysis.

Let us start the Schneider Electric PESTLE Analysis:

Political Factors:

The political factors in the Schneider Electric PESTLE Analysis can be explained as follows:

Schneider Electric is a leading global company offer energy solutions & automation. The political uncertainty in many international markets affects the operating business. In some countries governments are highly active in amending its policies towards more sustainability and energy efficiency and management. It has opportunity in this domain to work upon its processes and products accordingly. It already has a huge market share in different markets globally. With the help of better government subsidies and incentives, its sales and profit can increase tremendously.


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Economic Factors:

Below are the economic factors in the PESTLE Analysis of Schneider Electric:

The economic factors such as the foreign exchange rate, inflation and the taxes imposed impacts the business of Schneider Electric.

Factors such as education level and employment influence the awareness and choice in better energy management decisions. The purchasing power of people has a role to play in buying more energy efficient services and products for their homes and other infrastructural needs. There are lot of macro environmental factors such as high currency exchange risk and interest rate risk which need to be considered by the company to gain a competitive advantage from its competitors in the industry.


Social Factors:

Following are the social factors impacting Schneider Electric PESTLE Analysis:

The social factors such as lifestyle choices and attitudes affect the business for inclusive growth. It is important to boost energy conservation culture in the society and train underprivileged persons in energy management. The demographics of the population meaning their age, gender vastly impact whether or not a certain product is appealing to them or not. It is important to bring in apt functional strategies to make an impactful business model. Certain steps in this direction can bring more customers on board for Schneider Electric. Right marketing strategies can tap the untapped market and increase more revenue.


Technological Factors:

The technological factors in the PESTLE Analysis of Schneider Electric are mentioned below:

Today the technological advancements are changing the length and breadth of any industry in a fast-paced manner. It becomes important for Schneider Electric to keep on investing its resources in research and development of new technologies. With the rising focus on renewables in transportation and infrastructure, it lays a huge opportunity for the company to put its technologies strategically. The smart cities and smart villages in developing countries focus on energy efficient products, the company has a competitive edge on this compared to its competitors.

With the digitization of its processes in supply chain, it can bring a lot of transparency as well as sort of green innovation.


Legal Factors:

Following are the legal factors in the Schneider Electric PESTLE Analysis:

As the legal frameworks are put in place, it becomes imperative for companies to abide them for avoiding any legal hassle and negative brand image. The company is operating in many countries; hence it becomes important for them to consider laws and legislatures of different markets globally. There are a lot of legal factors such as energy laws, ethics and compliances, environmental vigilance and human rights etc. which impacts the business of Schneider Electric .it is important for this company to take care of its legal policies to match properly with the operating countries in order to stand tall in the market as a leader.


Environmental Factors:

In the Schneider Electric PESTLE Analysis, the environmental elements affecting its business are as below:

With the rising carbon footprints, it becomes essential for Schneider Electric to take care of its operations accordingly to minimize it. This company is required to commit to reduce climate changes and its disastrous effects. It is also important to make its operations efficient by leveraging renewables and cutting down its cost.

The proper implementation of its E waste policies and doing its CSR to make people aware about climate concerns is of utmost importance. The environmental performance of its different units worldwide can bring competitive advantage to it. Working in the direction of environmental factors will help the company become a market leader.

To conclude, the above Schneider Electric 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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