PESTLE analysis has several advantages, but it also has some drawbacks. Here are some of them:
The environment is constantly changing – what was relevant six months ago may not be now. Due to the constant changes, it is challenging to keep up, so the information in your PESTLE analysis may quickly become outdated.
Much speculation is required – since the future is impossible to predict with 100% accuracy, you will have to make several assumptions when performing a PESTLE analysis. It can lead to inaccurate results.
Data overload – Because PEST analysis necessitates gathering such large amounts of data, sifting through it and deciding how to utilize it to your advantage is time-consuming.
Risk of inaccuracy – You can’t be sure that the information you’re receiving is correct because, most of the time, you’ll be obtaining it from outside sources.