PEST Analysis

EST analysis is an analysis of the external macro-environment that affects all firms. P.E.S.T. is an
acronym for the Political, Economic, Social, and Technological factors of the external macro-
environment. Such external factors usually are beyond the firm's control and sometimes present
themselves as threats. For this reason, some say that "pest" is an appropriate term for these
factors. However, changes in the external environment also create new opportunities and the
letters sometimes are rearranged to construct the more optimistic term of STEP analysis.

Political Factors

The political instability of the country is the main reason affecting the core subjects. The govt.
regulation on mobile operators increased Taxation (GST) and high inflation affecting the internal
environment of the company. No friendly investor environment, War of terror, security
concerns and PTA regulation are also contributing towards high impact.

Economic Factors

Continuous degradation in country’s economic health lessening the purchase/consuming power

of the customer. Company’s focus on cost cutting and downsizing is the major factor of increase
in unemployment. Customer in today’s world is more demanding for QoS for less expense with
better quality. The poor economic sector also influencing the entire market causing competitors
to work together for fighting out this chronic situation for this purpose concept of sharing of
infrastructure and recourses is largely employed.

Socio-Cultural Factors

As Pakistan is an Islamic country and people are very strict and sensitive in case of religion,
anything against the philosophy of Islam on either print or electronic media are treated as
against religious dignity. Occasional activities both cultural and religious have influential effects.
Similarly Pakistani society has cultural mix demography with different mind sets and demands.
Customer expectations are high, customer demand more for their problem solution rather new
products. Brand consciousness is one of the factors associated with demography

Technological Factors

Technology is changing every day, Companies have technology with which they can compete in
the Pakistan and now companies are investing in their infrastructure to not only expand but also
to upgrade their existing structure like from 2G networks to 3G technologies for better quality
and higher capacity to overcome future demands. With new infrastructure, investment also
put on human resources for up gradation of their competencies through certification
and trainings. Technologies also encourage competitors to work together for this
integration of major companies has already been done (Nokia and Siemens) and some
are in progress.