I need help in preparing a PESTLE anaylsis for a local telec

I need help in preparing a PESTLE anaylsis for a local telecommunications company wanting to expand its business to Nigeria.In addition to listing the political, economic, social, technological, legal, and enviromental factors, I also need to list innovative and cultural factors.

Solution

Nigeria is on the verge of telecom revolution. It continues to be one of the fastest growing telecom industry in the world. Nigerian economy is likely to be driven by immense growth in telecommunication industry. The Nigerian telecom sector is attracting a large amount of foreign investment.

Pestle analysis helps in identifying various variable factors within a given market. It helps decision makers in understanding of changes that may be occurring in a market. Pestle analysis involves identifying various external political, economic, social, legal, cultural & environmental factors. It helps in assessing risk factors that affects performance of a business. We will discuss them in details below.

1) Political factors: Political environment of a country affects the performance of a business. Regulation issues in economic policies come up frequently. The government wants to regulate the industry to a certain extent. Since now day’s Wi-Fi & internet have become part of the daily life. Customers want cheap & uninterrupted services. Political turmoil, terrorism threat & unrest in some areas may affect telecom business as risk to infrastructure is high in such areas.

2) Economic factors: The role of economic factors is of much importance in the context of telecom business. Interest rates, inflation & taxes affect the telecom industry. Nigeria does not witness much economic risk due to its moderate GDP growth rate, low government debt, and fiscal surplus. Though people were spending less during recession & growth of telecom services slowed. Now recession has passed & consumer spending on telecom services is increasing. Also due to reduced trade barriers foreign companies are interested in expanding their networks.

3) Social factors: Social factors also affect the performance of telecom business in a country. Globally the use of internet based services has grown & so is in Nigeria. Though rural regions have less accessibility to cellular services in Nigeria. Social challenges in Nigeria are prevalent such as high unemployment rate, high corruption rate, and high homicide rate (crime rate) which have somewhat negatively affected the business. Major social concern of the country is increasing unemployment rate which will affect the income levels and purchasing power.

4) Technological factors: The whole telecom industry relies on technology therefor technological changes affect it significantly. The use of mobile computing is increasing. In Nigeria increased penetration of IT & cloud computing have increased the efficiency of the telecom sector.