PESTEL Analysis of Bolivia's Business Environment
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ScribdTranslationsPESTEL Analysis of Bolivia's Business Environment
Translated by
ScribdTranslationsPESTEL analysis
Political factor:
The political context in Bolivia is characterized by a lack of stability in the state.
constant fluctuations generate great uncertainty for many companies when it comes to making decisions
decisions especially when it comes to investing as it is not known if the rules of the game will remain
being the same. Also, after there was a change of a new president on duty
and things are relatively getting worse.
Likewise, the lack of balance that exists between the powers of the state has been evidenced.
the balance tilting towards the executive power due to various instabilities
institutional.
The mentioned aspects make it difficult for several companies and industries, hindering their development.
of their respective activities, as well as investments and the execution of their projects.
However, with the Ministry of Rural Development to work on the reactivation of the chain.
National text with a seal of origin, which was proposed by the current president in office.
Economic factor:
If we analyze Bolivia's economic environment in the last decade, we can appreciate that
after the pandemic 2020 - 2021 our country went through a small period of
recovery due to trade restrictions.
Starting from the year 2021, according to government sources, this year GDP will increase by 5.1%
One of the government's measures is to invest credits in micro and large enterprises for the
supposed reactivation of industries and companies since a health crisis was experienced that
it directly affects the country's economy including small businesses.
Conclusion: the national economy is going through a significant period of instability, with expectations
of the retraction of economic activities with high uncontrolled inflation rates since the
Evo Morales' government until today shows that the only evidence has been for a long time.
It's not convenient to invest in any business right now as there only exists large ones.
informal speculations. This must be added to the tax pressure which is quite significant.
significant for small entrepreneurs.
Social factor:
Fashion has become a widely disseminated topic among the general population.
There has been a certain unification among social levels regarding trends in
clothing, which has allowed the middle class population to have options for
incorporate into their shirts models of garments similar to those that can be seen in the
television, magazines, etc. This expansion of fashion, as well as the use of more styles
"Unstructured" or versatile options create opportunities for shirt stores to the
time to decide what combination of products to offer to your customers. In modern society
People acquire shirts not only to satisfy the need for clothing, but also
also to look good, feel admired, be socially accepted, etc., which is a
positive factor to take into account for merchants. Additionally, the way of
buy clothing, focusing on comprehensive stores that offer vestr garments,
footwear and accessories. Another variable to consider for opening a clothing business is the
demographic growth as it increases the number of potential customers in the long term.
deadline.
Technological factor:
The great development of communications through the internet offers an opportunity for
companies can greatly expand their brand recognition, knowing
take advantage of search engines, your website, social media, the use of advertisements on sites
crowded by their target market, etc. However, this characteristic can become
also in a threat when competitors know how to take advantage of it better or do not
accompanied by a service in line with the image broadcast. In addition to contributing to the
brand recognition, social media along with the advancement in technologies of the
communication has allowed stores to be in constant connection with their
clients, being able to inform them about new products and make promotions for the day or for
certain time slots, having the certainty that this communication will be effective. The
The rise of the internet has even led to the point where practically any product can be purchased.
through the aforementioned network, which has led companies from various sectors to have to
adapt to it in order to be on par with its competitors. In the case of the
clothing, most of the stores do not offer this service and it is not perceived as a
demand from clients since, in general, women prefer to try on the
Considering that 7 of the 10 largest companies in the world by market capitalization
they were at the timestartupsor technological ventures, and that thenumber of
startupsLatin American companies with a valuation of over one billion dollars are growing.
the importance of promoting technological ventures seems unquestionable for
the long-term competitiveness of our country.
Ecological factor:
No radical ecological cases have been recorded that can be registered in the ecological factor.
only the exploitation of cotton and material for the manufacture of shirts which is
producers together with the Ministry of Lands and Rural Development are responsible for production
cotton among other essential raw materials.
Legal factor:
Thelegal factors in Boliviainclude, among others: health and safety, equality of
opportunities, advertising regulations, the rights and rules that affect the consumer, the
labeling and product safety. It is evident that companies need to know what
what is and what is not legal to be able to operate successfully in Bolivia.