Pestle analysis of USA (United States of America). The USA is a country in North-America that consists of 50 states. She’s the world’s third-largest country with a total area of 3.8 million square miles. Washington DC is the capital of the USA.
Indians were the first inhabitants of North-America and they immigrated from Siberia roundabout 12000 years ago. Europeans came here much later 500 years ago in the 16th century. It used to be the 13th colony on the east coast under the administration of Great Britain. Many Americans were unhappy with the British King and they fought a revolutionary war (1775-1783) against the British colonists.
Today roundabout 328 million people are living in the US and makes her the world’s third most populated country in the world. New York is her most populated city.
In terms of growth, revenue, GDP, technology, and diversity, the USA is the world’s most advanced and developed country. Roundabout 29.4% of the total wealth of the world belongs to the US.
Today, we’ll study the pestle analysis of USA. Here we’ll focus on the macro-environmental factors that impact the world’s largest and most advanced country. If you want to learn about the internal factors that affect her growth, check out the swot analysis of the USA. Here’s the pestle analysis of USA as follows;
Political factors Impacting USA
Fair Political System
The USA follows the presidential democratic political system. She has a fair electorate process and election system. Her president falls under the category of the world’s most powerful person because he’s the head of the superpower country. She has a great influence over the policymaking, political, and economic affairs of the country and worldwide.
War on Terror Policies
Many political critics claim that the 9/11 attacks have provided the USA an excuse to attack any country under the disguise of national security measures. Her war on terror policies has led the country into many wars and interventions in other countries. The political and military intervention has attracted massive criticism on the country.
Foreign Direct Investment (FDI)
The USA is one of the world’s biggest advocates of democracy. She has a stable political environment, sophisticated technology, and well-developed infrastructure. That’s why she attracts major foreign investors and FDI (foreign direct investment).
Many other contender countries want FDI. Like South Africa, China, Nigeria, India, Turkey, Brazil, and many other countries.
Economical factors affecting the USA
The USA has the world’s largest and most stable and powerful economy. According to a financial report by DataLab, the annual GDP of the USA was 20.807 trillion US dollars by the end of 2020. The annual per capita of the country was 63051 US dollars.
Some of the world’s leading companies like Coca-Cola, Pepsi, Google, Walmart, Facebook, Microsoft, Apple, McDonald’s, Netflix, and many others. They’re all from the US and operating their business worldwide.
The pandemic of covid-19 has shut down all the businesses worldwide. The lockdown went on for months and people were stuck in their houses. Hundreds of thousands of people became unemployed during and after the pandemic. Only the tech companies and businesses were booming.
The USA has the advantage of global in-house tech companies. They contribute a major portion to the country’s economy. The unemployment rate is increasing and it’s declining the purchasing power of people.
Changing Economic Environment
The economic environment of all countries worldwide is changing. In other words, the power balance is shifting. China, India, and Russia are top contenders for power. It may happen gradually or suddenly. But when it happens, the dominance of the US would be in great jeopardy.
Global Economic Recession
Whether it’s the Brexit deal, US-China trade war, conflict with Russia, and South Korea, all of these events may seem random. But they’re all connected and they make the international difficult. Most importantly, the pandemic of covid-19 is harming the world’s economy. The pandemic would leave the world with millions of unemployed people.
Social factors Impacting USA
High Aging Population
As we know that the USA is the world’s 3rd most populated country with a total population of 328 million people by the end of 2020. According to an estimate, a child is born every 8 seconds and a person dies every 11 seconds.
The USA has the highest number of aging population and it falls under the category of the world’s top 20 aged populations. The high number of population aged creates problems in terms of labor supply.
People from all over the world are living in the US and it makes her the world’s most diverse country. Every 3rd US person would be African American, Latino, Hispanic, Mexican, Asian, or Native American. The country is the melting pot of all the world’s cultures and civilizations comprising of people from everywhere.
The USA has the most advanced healthcare system and it’s very expensive. People have become health-conscious in recent years. It’s because the previous fast food trend has increased obesity and made people diabetic. Now they’re moving towards a healthier lifestyle, diet, and exercise.
The American people are open-minded and they have got liberal-minded. It’s because they’re accustomed to seeing different cultural norms and trends.
The racial tension has been increasing in some states of the US, where the police have a tyrannical attitude toward Blacks. It’s mostly due to socioeconomic mobility. Socioeconomic mobility means upward and lowers the class of people in society because of the social and economic level. The white people have got certain privileges that other people don’t have.
Technological factors affecting the USA
Ever since the foundation of the US, the country has always had a great fascination with science and technology. She has got the best technological institutes in the world and they hunt down talent from across the world. The world’s top 5 tech companies like Google, Facebook, Amazon, Microsoft, and Apple are also in the US. It won’t be wrong to say that she’s the tech leader of the world.
The American people have also got a flexible attitude towards technology. They accept and adapt the latest technology and apply it in different fields. The practical application and utilization of technology in real life is the main reason behind the success of the USA.
Most importantly, technology has created many job opportunities and reduced production costs. That’s why many US companies have shifted their production facilities to other less developed countries.
Other countries like India, China, Russia, and North Korea are developing their technology at the same pace. The rapid technology change would make things very difficult for the US in the future.
Legal factors Impacting USA
All the states of the US are independent and they’ve got their laws completely different from the other states. She has a fair legal and judicial system. It means that everyone is equal before the law and the legal system won’t discriminate against anyone based on one’s background.
The USA has got very strict intellectual property rights and patent laws. They’re the major reasons behind the formation of giant tech companies. It creates a safe environment for the intellectuals to develop programs and software so that the creator would receive credit for his/her work.
Environmental factors Impacting USA
As we know that the USA is the 3rd largest country in the world and its geography comprises of diverse landscape, wildlife, and climate. The vast landscape attracts the attention of millions of tourists across the world. According to an estimate, approximately more than 79 million tourists visited the US in 2019 from the top six countries of the world. Like China, Canada, Brazil, Japan, Mexico, and the UK.
The vast landscape of the US is charming and attractive for the tourist. It brings catastrophic climates along with it. According to an estimate, she has faced more than 218 worst natural climates since 1980. They cost her economy billions of dollars of losses. For instance, the wildfire in California, typhoons, hurricanes, floods, etc.
After an in-depth study of the pestle analysis of USA, we have concluded that the USA is indeed the most powerful country in the world in terms of economy, technology, and politics. But the threat of natural disasters, growing tech competition, and racial conflicts are real. She should find a way to address these issues and be for them in the future.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.