Marketing Across Cultures Assignment: PESTLE Analysis of Egypt

This report presents a PESTLE analysis of the Egyptian market, examining the political, economic, social, technological, environmental, and legal factors influencing business operations. The political instability, military influence, and conflicts are discussed, along with economic indicators like GDP, GNI, and inflation. Social factors such as unemployment, crime rates, and overpopulation are also assessed, alongside technological advancements and environmental concerns. The legal framework and its impact on the business environment are also analyzed, providing a comprehensive overview of the market landscape. The report concludes with a discussion of the challenges and opportunities for businesses operating in Egypt, highlighting the need for strategic adaptation to navigate the complex market dynamics.

RUNNING HEAD: MARKETING CROSS CULTURE
MARKETING CROSS CULTURE
Name of the Student:
Name of the University:
Author’s Note:

1MARKETING CROSS CULTURE
PESTLE analysis
The PESTLE analysis will be done to identify the political, economic, social, technical,
environmental and legal factor of Egypt.
Political factor:
Political instability is one of the key problems for doing business in this country.
Democracy of this country is not flourished because of military rule. The major decision of this
country is controlled by military rule (BBC News 2019). Political parties, Judiciary, and military
are struggling to achieve power. Because of the dam issues regarding the River Nile, conflict is
present between Egypt and Ethiopia. Democratic parties participated in the general election of
this country in 2011-2012. However, within one year, the government collapsed (BBC News
2019). Semi-presidential system of government is followed in Egypt (BBC News 2019).
Economic factor:
After the presidential election of 2014, the economic condition of this country has been
improving. In 2018, the GDP of this country was near about EGP 250.895 billion
(Data.worldbank.org 2019). The GNI per capita income of this country was $2,800
(Data.worldbank.org 2019). In 2019, annual GDP growth of this country was 5.6%
(Data.worldbank.org 2019). In 2019, the inflation rate of this country was 13.87% (Plecher
2019). Shortage of oil, the decline of tourism and foreign investment due to political instability
are creating an adverse impact on the economy of this country. In 2016, as a part of the
agreement with the IMF, this country is implementing the economic reform programme. The
service sector of this country represents 51.4% of Egyptian GDP (IMF 2019).
Telecommunication and tourism sector generate huge revenues.

2MARKETING CROSS CULTURE
Social factor:
The crime rate of this country is high due to the high unemployment rate. In 2018, the
unemployment rate of this country was 11.44 % (Data.worldbank.org 2019). In comparison with
2017, the unemployment rate of this country declined by 0.33% (Data.worldbank.org 2019). This
country is not safe for women. Poverty and overpopulation are problems of this country
(Aljazeera.com 2017). Because of fuel shortage, citizens of this country are suffering. Production
of this country is hampered by the power shortage.
Technical factor:
Ancient Egypt was technically advanced. However, at present, this country is facing the
problem of lack of technological advancement. Honest leadership is missing in this country who
can guide this country towards technical advancement.
Environmental factor:
The primary water source for this country is the River Nile, which is polluted by
industrial dumping. Because of wind storms and urbanization, agricultural lands of this country
is dropping. The water flow of the river is reduced by the construction of Aswan Dam (BBC
News 2019). As a result of the production in agriculture is reducing. As a result of this farmers
are forced to use chemical s for production.
Legal factor:
Law and order situation of this country is not stable due to the conflict between the
military group and the democratic political party. The ruling president of this country has taken
action against Islamic extremist groups. This action of this president created the religious

3MARKETING CROSS CULTURE
revolution in this country. The anti-Islamic action of the president has made this country
politically unstable and unrest country.

4MARKETING CROSS CULTURE
References:
Aljazeera.com (2017). Egypt's Emergency Law Explained. [online] Aljazeera.com. Available at:
https://www.aljazeera.com/indepth/features/2017/04/egypt-emergency-law-explained-
170410093859268.html [Accessed 4 Mar. 2020].
BBC News (2019). Egypt country profile. [online] BBC News. Available at:
https://www.bbc.com/news/world-africa-13313370 [Accessed 4 Mar. 2020].
Data.worldbank.org (2019). Egypt, Arab Rep. | Data. [online] Data.worldbank.org. Available at:
https://data.worldbank.org/country/egypt-arab-rep [Accessed 4 Mar. 2020].
IMF (2019). Arab Republic of Egypt and the IMF. [online] IMF. Available at:
https://www.imf.org/en/Countries/EGY [Accessed 5 Mar. 2020].
Plecher, H. (2019). Egypt- Inflation rate 2024 | Statista. [online] Statista. Available at:
https://www.statista.com/statistics/377354/inflation-rate-in-egypt/ [Accessed 4 Mar. 2020].