6 STEEP Analysis Examples

A STEEP analysis is a tool that helps businesses to examine external factors and use them to their advantage. In this article, we explain what a STEEP analysis is and how to conduct it. Besides, we’ve prepared some great STEEP analysis examples. Keep reading to learn more!

🔝 Top-6 STEEP Analysis Examples

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  3. Establishing a Business in Baking Market
  4. NMC Healthcare Company's Mission and Vision
  5. Intercontinental Continental Hotel Analysis
  6. Impact of CoronaVirus on the Aviation Sector: Emirates Airline

📖 Definition of STEEP Analysis

First of all, let’s try to clarify what exactly a STEEP analysis is and what good it can do for a company.

What Is a STEEP Analysis?

The STEEP analysis stands for Social, Technological, Economic, Environmental, and Political. Using the STEEP analysis means identifying and analyzing each of these factors and their effect on the business in the past, present, and future.

Comparing STEEP vs. PESTLE, remember that they are both similar analysis methods, but PESTLE adds an extra section known as Legal.

Why Is STEEP Analysis Useful?

The STEEP analysis helps a business make more informed decisions while navigating influential trends, even without previous experience.

When a company needs to understand the market or discover what steps are required, this analysis will provide valuable details on current customer needs and trends as well as keep the business up to date on the current legal information.

🚀 Elements of a STEEP Analysis

The following STEEP analysis template outlines the elements required to make the analysis helpful for the business.

Social Factors

The social factors include the following key elements:

  • Lifestyles,
  • Education,
  • Age distribution,
  • Demographics,
  • Religion,
  • Trends.

The social aspects can cause problems with a company’s strategic plan, so it’s important not to underrate the importance of this part.

Technological Factors

The technological environment is constantly subject to change as new and innovative methods are discovered. Technological factors include:

  • Communication,
  • Transport,
  • Patents,
  • Research and development.

This innovative aspect is vital if a company needs technological advances to improve services and products or generate new ones.

Economic Factors

The economy of the world has a significant effect on a business. The economy doesn’t simply cover how well off an area is; it also looks at the following:

A practical STEEP analysis of the economy helps businesses adjust their strategies accordingly.

Ecological Factors

The ecological aspect is growing in importance in the minds of consumers and businesses. It covers:

  • Natural resources,
  • Sustainability,
  • Recycling options,
  • Pollution,
  • Environmental regulations.

A business needs to assess the ecological factor in their area and any area they plan on expanding into to remain legal and current.

Political Factors

The political factors of the STEEP analysis include:

In this case, a lack of proper analysis can result in fines and bad returns on investment. It can increase the time it takes for a company to overcome legal or political barriers.

✍️ How to Conduct a STEEP Analysis

A STEEP analysis is typically conducted by a firm’s corporate level or a division. However, any individual can analyze a small business. The following steps divide the process into digestible chunks.

Understand the Elements of the Environment

Look at the business and ask questions about the environment you are examining. Analyze current key events and environmental trends and how they have evolved. Then look at how the trends impact the company.

Determine the Interrelationship between Trends

Look at the conflicts between the trends, then determine their interrelationships. What works well together and what doesn’t?

Relate Issues to the Trends

Look at all the trends and identify which of them will bolster the business and which will hinder it. Then narrow the trends list down to determine the main issues.

Forecast Possible Direction of Issues

Once the trending issues are identified, find meaning in the data gathered. This step requires looking at all you have and working out the symptoms and driving forces behind the trend.

Make a Conclusion

Draw conclusions about the effect the trends can have on the company both now and in the future. Conclusions drawn should leave the company with enough data to make effective strategic plans to improve the business.

✨ Amazon & Apple STEEP Analysis Examples

Now, it’s time to check out some examples of STEEP analysis for Amazon and Apple.

Amazon STEEP Analysis

👥 Social FactorsBenefits from the growing trend of e-commerce, as more people are shopping online.
Faces scrutiny over labor practices.
🤖 Technological FactorsUses advanced analytics and artificial intelligence to personalize the customer experience and improve operational efficiency.
Invests in robotics and drone technology to improve its logistics operations.
💰 Economic FactorsRevenue growth is driven by its dominance in the e-commerce market.
Faces criticism over its impact on brick-and-mortar retail stores.
♻️ Environmental FactorsFaces criticism over its carbon footprint.
Is committed to using renewable energy.
💼 Political FactorsFaces regulatory scrutiny over its market dominance.
Faces criticism over its tax practices.

Apple STEEP Analysis

👥 Social Factors Has a strong brand image perceived as a symbol of innovation and high-quality products.
Faces criticism over labor practices in its supply chain.
🤖 Technological Factors Is a leader in technological innovation focused on creating premium products for a superior user experience.
Invests in artificial intelligence and machine learning to improve its products and services.
💰 Economic Factors Has a large and loyal customer base that allows to maintain high profit margins despite intense competition in the market.
Faces criticism over its pricing strategy.
♻️ Environmental Factors Is committed to reducing its carbon footprint and using renewable energy.
Is focused on creating more sustainable products.
Political Factors Faces scrutiny over its tax practices.
Faced regulatory scrutiny over its app store practices.

We sincerely hope our examples helped you better understand how to conduct a STEEP analysis. Now, it’s time to try to do it yourself. Good luck!

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