Optometry PEST Analysis During COVID-19
Optometry PEST Analysis During COVID-19
A PEST analysis is used as a management framework and strategy diagnostic tool. It helps understand the effect of external factors at the macro economical level on the company’s strategy and decision making. Strategy tools that impact decision-making are related to factors at the internal level, external microeconomic level, and external macroeconomic level. A SWOT analysis is employed to understand the internal level factors, the Porter Five Forces model is used to understand the external microeconomic level factors, and the PEST analysis is used to understand external macroeconomic level factors.
PEST is an acronym for Political, Economic, Social, and Technology. PEST is frequently replaced by PESTLE which is an acronym for Political, Economic, Social, Technology, Legal, and Environment. The aim of conducting PEST or PESTLE analysis is to gain insights at the macroeconomic level and to analyze its impact on decision-making. COVID-19 pandemic has an effect on all external factors.
Political factors affecting Optometry are related to government decisions on lockdown, loan forgiveness, telemedicine and telehealth expansion, and vaccine.
Economic factors affecting Optometry are related to employment or labor availability, unemployment rate, inflation due to quantitative easing, economic stagnation, supply chain disruption, exchange rate fluctuation, interest rates, cost of living changing with the changing consumer spending habits, as well as the effect of businesses looking for ways to compensate for the reduced working hours in affecting pricing and products availability.
Social and socio-cultural factors affecting Optometry are related to changes in trends in consumer behavior for shopping, lifestyle changes, affected cultural norms, customers are becoming more price-sensitive, and expectations of career attitude and work-life habits have dramatically changed. Practices in large cities are less frequented due to the demographic shift toward inner cities and suburbs; consumers are fleeing large cities and preferring not to visit crowded places and waiting rooms.
Technology factors affecting Optometry are related to the advancement of telecommunication and internet-based telehealth. Teleconferencing is disrupting annual meetings and exhibitions. The depreciation of equipment for eye diagnostic and lab machinery has to be revised with the reduced utilization.
Once all the factors in a PEST or PESTLE analysis are identified the next step would be to assess its impact on the micro economic level and the internal level of your practice as well as making decision related to the overall strategy.
