British Gas is an energy and home service providing UK company. The brand started its business in 1997 as a subsidiary of Centrica. Today, we’ll discuss the PESTLE analysis of British Gas; it focuses on external environmental factors like; political, economic, social, technological, legal, and environmental factors.
Political Factors Impacting British Gas
Some of the main political factors in the British Gas PESTLE analysis are as follows;
I-Government Regulations
Ofgem is the energy sector regulatory department in the UK and it has recently found that the British Gas has a poor track record of providing customer service. In fact, they received a lot of complaints about the poor customer service of the energy company. Such complaints aren’t good for the company’s reputation and they would compel the regulatory department to re-analyze the company’s products and services.
II-Strikes
British Gas changed the contractual terms and conditions of its employees and workers back in 2021. As a result, they went on strike for months and the company finally accepted their demands. Many experts have suggested that the workers’ union had the support of the Labor Party. However, the strikes and processions are negatively impacting the brand reputation along with jeopardizing the brand image in the energy market.
Economic Factors Affecting British Gas
Some of the main economic factors in the British Gas PESTLE analysis are as follows;
I-Large Distribution Network
British Gas has established a very large network comprising over 10 million users across the UK. It comprised a network of towers, poles, and cables to cover a large distance in various in various countries. In fact, the company is one of the largest energy service providers in the UK’s market. It shows the company’s large network and commitment to the energy market.
II-Part of Big Six
British Gas is a part of Big Six companies that are top energy providers and dominating the UK’s market; SSE, Scottish Power, E.On, npower, RWE, EDF Energy, and British Gas. The large market and distribution network and alliance with Big Six further strengthen the company’s position and network. In fact, the collaboration helps the company to cover more ground and offer electricity service in far-off distance locations.
Social Factors Impacting British Gas
Some of the main social factors in the British Gas PESTEL analysis are as follows;
I-Clean Energy
The consumer has become highly cautious about clean energy due to various environmentally sustainable campaigns over various social media platforms. British Gas should shift its focus away from oil and burning fossil fuels towards solar panels and wind turbines. The clean energy initiative helps the company to attract the attention of the customer market.
II-Consumer Spending
Consumer spending habits play a key role in the growth and development of any business in a particular market. The trend of smartphone usage and other tech devices has been increasing significantly for the past few years. However, they all require energy and electricity and energy to recharge their tech and digital devices; which shows the company’s increase in business.
III-Customer Service
British Gas has a very proactive customer support service line and it remains open from 8 am to 5 pm. The active customer support service helps the company to resolve the customers’ complaints.
Technological Factors Affecting British Gas
Some of the main technological factors in the British Gas PESTEL analysis are as follows;
I-Renewable Energy
British Gas is investing a significant amount of capital resources in the development and increase in the production of renewable energy. It allows the company to keep up with the growing environmentally sustainable trends and target eco-friendly customers.
II-Tech Innovation
British Gas should keep investing resources in research for the development latest advanced technological innovation. It allows the company to develop unique and innovative home appliances and energy-efficient products and devices. Tech innovation is the key to business growth and development and it helps the company to gain a competitive edge in the market.
Legal Factors Impacting British Gas
Some of the main legal factors in the British Gas PESTEL analysis are as follows;
I-Regulatory Compliance
British Gas should comply with government regulations regarding energy service safety and electric distribution. The government and Ofgem regulations are strict when it comes to the safety and customer service of individual customers. The non-compliance would attract expensive lawsuits, heavy fines, duties, and penalties.
Environmental Factors Affecting British Gas
Some of the main environmental factors in the British Gas PESTEL analysis are as follows;
I-Environmental Sustainability
The growth and development of the renewable energy initiative show British Gas’s strong commitment to environmental sustainability. It allows the company to decrease the carbon emission rate and reduce the overall carbon impact on the environment. As a result, it helps the electricity brand to build a positive brand image in the energy market.
Conclusion: British Gas PESTLE Analysis |PESTEL Analysis of British Gas |External Environmental Analysis of British Gas | Strategic Analysis of British Gas
After an in-depth study of the pestle analysis of British Gas; we have realized that British Gas is the UK’s leading energy and electricity brand. If you are learning about the British Gas PESTLE analysis; then you should keep in mind the abovementioned external environmental factors like; political, economic, social, technological, legal, and environmental.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
