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PEST analysis about Portugal

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Gerson Claro

on 14 November 2013

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Transcript of PEST analysis about Portugal

PEST Analysis about

Teacher: Joanna Kubicka

Students: Carlos Rogão
Filipa Esteves
Gerson Claro
Mónica Silva
Samuel Mendes
Sónia Silva
Socio-Cultural factors

Phenomena of opinion / fashion :

• Movements of consumer protection .

• Lobbies , fashion phenomena .

• Convictions of a religious , political or otherwise.
(some religious habits, condition a bit the way how Portugal acts in international market)

• Influence of the media and opinion leaders .
(for exemple one of the biggest brand/company, Pingo Doce)

Demographic factors :

• Rate of population growth .
(-0.3% Annual change (2012)

• Distribution of the population by region and gender .
(People prefer to go to the coast rather than the interior of the country)

• Age structure of the population .
(In Portugal exists to much old people)

• Birth rate and mortality .
10,86/1.000 habitantes -> mortality
1.35 births per woman (2011) - Birth

• Migration flows .
(By day 408 Portuguese leave Portugal)

Cultural factors :

• Distribution of the population by education level .
(in Portugal who do not have a degree in some cases is seen as inferior)

• Exposure to the media .
(more and more young people want to take in the sights, then compete to programs like Secret Story)
Consumption habits :

• Willingness to change.
• Motivations generic purchases .
• Attitudes generic forward consumer .
• Degree of membership of the consumer to the product .

Buying habits :

• Local purchasing .

• Quantities of purchase.

• Frequency of purchase.

(In Portugal there are to many excellent national products, better than those of foreign countries, but the Portugueses insists prefer products from outside, basically the mindset is still retrograde)
Technological factors

Deep Zoom
is a technology developed by Microsoft for efficiently transmitting and viewing images.
It allows users to pan around and zoom in a large, high resolution image or a large collection of images


is a software application from Microsoft Live Labs and the University of Washington.
Analyzes digital photographsand generates a three-dimensional model of the photos and a point cloud of a photographed object


is a motion sensing input device by Microsoft for the Xbox 360 video game console and Windows PCs.
Ecomonics Factors
Currency: euro

GDP - million 210 600 - 2012

GDP by sector agriculture 2.6%

Industry 22.6%

Trade and services 74.8%

Inflation rate 1.7%
- The normal value is 2% to 4.5%. in other words Portugal has price instability

Current situation of economic crisis: unfavorable
- Decline in public confidence in the markets
- Inequality of distribution of income and wealth in the country

VAT increase:
-Electricity and gas from 6% to 23%
-Restaurant 13% to 23%
-Food 6% to 23%
-Other services (telecommunications, clothing, transportation, health services, etc.) all rose to 23%

Purchasing power by consumers: reduced

-As VAT has increased, people started saving. Buy strictly necessary to survive
Unemployment rate: increased
-By consecutive increase taxes companies do not have financial support to continue. Choose to close the company or dismiss their employees.
Political environment
-Parliamentary democracy
-Unstable due to the economical crises
-The trust of internacional markets declined
-We are now controled by the European Union–International Monetary Fund bailout plan
-Deep economic recession
-Judicial system its not efficient

Laws that regulate or tax your business
-Easy to start a business
-Liberal economy
-Government implements taxes like IVA, IRC and IRS
-Company should pay 25% of the incomes plus 2.5% of local tax.
Marketing ethics
-The government doesn't permit campaigns which try to make fun of religion (cristianity)
-Which has a sexual content
-Sports its not allowed to alcoholic beverages to sponsor teams to

Policy economy
- Rules are implemented by Troika because of the implementation of FMI.
View on culture and religion
-Open-minded country
-Don't make restrictions to foreigners

Trading agreements
- Member of EU which means that is a member of the WTO
-Trade agreements with Brazil, China and Africa
Social factors :

• Breakdown of households by social class and wealth by regions .

• Composition of families .
( they only want in average 1 children)

• Evolution of marriages and divorces .
(on average, each year there are 25,255 divorces
on average, each year there are 36,035 weddings)

• Life cycle of families .
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