DESTEP Analysis
The DESTEP analysis is a model used to map the macro-environment of an organization. The model helps to analyze external developments that may affect a company, but that the organization itself can hardly or not at all influence.
DESTEP stands for:
- Demographic factors
- Economic factors
- Socio-cultural factors
- Technological factors
- Ecological factors
- Political-legal factors
By systematically examining these factors, you gain insight into trends, developments, opportunities, and threats in the external environment of an organization.
A DESTEP analysis is used as part of the external analysis within strategic management and marketing. The results can be used as input for a SWOT analysis, in which opportunities and threats are linked to the strengths and weaknesses of the organization. In addition, relevant macro factors can be included in a confrontation matrix to underpin strategic choices.
The content of a DESTEP analysis differs per sector and organization. Not every factor is equally relevant for every organization. It is therefore important to tailor the analysis to the market, industry, and context in which the organization operates.
A good DESTEP analysis does not only focus on describing developments, but also on interpreting their possible consequences for the organization. This makes clear which external trends require strategic attention.
Starting Points
Key Points
- Having insight into the macro-environment of an organization.
- Identifying relevant developments within the DESTEP factors.
- Analyzing external trends and assessing their impact on the organization.
- Deriving opportunities and threats from societal and market developments.
- Translating the results into a SWOT analysis.
- Underpinning strategic choices with external data and sources.