Detailed PESTEL Analysis of Facebook

PESTEL Analysis of Facebook is nothing but looking into and then analyzing the six most important external factors that can directly influence the social media giant.

1. Lead-in

The first thing to know before reading the article is the answer to the question: What is PESTEL? PESTEL Analysis analyzes the six key factors responsible for externally influencing Facebook and its success as a company. PESTEL Analysis of Facebook is nothing but looking into the political, economic, social, technological, environmental, and legal factors behind driving the company externally.

Facebook is a huge company that deals with billions of dollars. Naturally, not only people sitting inside the company help the company run, but some external factors can help or distract Facebook when it comes to gaining more name and profit in the industry. Another reason why PESTEL Analysis of Facebook is necessary is that it will help the company management and professionals make decisions regarding the company that can be of use for the company during future crises.

2. About Facebook

2.1 Introduction of Facebook

Facebook Inc. or Facebook Inc. is the former name of the social media giant, which now goes by Meta. It is an American multinational company that is a part of the technology industry. The company has grown successfully over the years, and now it owns some top social networking sites like Facebook, Instagram, WhatsApp, and more. The brand reached the Top 5 list of American Information and Technology companies alongside big names like Amazon, Alphabet, Microsoft, and Apple.

Before getting into the PESTEL Analysis of Facebook, more information regarding the same requires discussion. October of 2021 can be said to be the month when the former company decided to change its name to Meta, and the reason behind them doing so is that they want to create a metaverse, which will be a universe where all their products and services are connected. Meta's products and services provide its customers with Facebook, Messenger, Facebook Watch, and Meta Portal. Oculus, Giphy, Mapillary, Kustomer, and Presize. Moreover, they acquired around 10% of the Jio portal, and their revenue for 2021 was very high from its advertising alone.

2.2 Overview of Facebook

Company Name: Meta Platforms, Inc. Formerly, this company was known as The Facebook, Inc.
CEO: Mark Zuckerberg
Company Type: Public
Year Founded: 4th January 2004
Employees: 83,553 as of June 2022
Annual Revenue: US$ 117.929 billion approximately as of 2021
Founder: Mark Zuckerberg, Eduardo Saverin, Andrew McCollum, Dustin Moskovitz, Chris Hughes
Area Served: Worldwide
Headquarters: Menlo Park, California, USA
Operating Income: US$ 46.753 billion as of 2021

3. Facebook Pestel Analysis

The government laws, rules, and regulations of a particular market, where the brand will be operating, comes under the political factor. The political factors that have directly affected Facebook are as follows:

Political Factors:

The government laws, rules, and regulations of a particular market, where the brand will be operating, comes under the political factor. The political factors that have directly affected Facebook are as follows:

  • Stability of politics in developed countries: The stability developed countries have over politics is an excellent opportunity for Facebook as they can show their diversity in these markets.
  • Opportunity to globalize with government support: Facebook's social media presence can reach great heights with the government's help. It can be an excellent thing for the company and its profits.
  • China creating political barriers: Even though most countries have given a green signal, Facebook faces significant challenges from China. Thus, the Chinese government's censors can create a barrier to Facebook's operations.
  • Political actions threatened Online Data: The Government is putting some rules and regulations into action because Cambridge Analytica created a mess. It will help them to limit the gathering of private information, which can slow down Facebook operations.

Economic Factors:

While discussing a business's strategy, management should focus on the economic factors. A company can be affected by many economic conditions and financial factors. Economic factors affecting Facebook are as follows:

  • Developing countries are getting stable economically: Today, developing countries have the biggest markets because of their newfound financial stability, and Facebook can put its mark in such countries as India.
  • Growth of the economy in developing countries is rapid: The rapid growth of the economy can also play as an invitation card for Facebook, and they can establish an excellent market here.
  • Rate of disposable income has increased: With an increased economy, the number of people in developing countries with disposable income also increases, and these are the people who can play a significant role in Facebook's growth in the market.

Socio-cultural factors:

A company should be well aware of the social structure of the market to influence the market. Humans are social, and they care about their social life a lot. Once a company can gain a foothold, it can rise without much issue. Facebook is a renowned social networking site worldwide. So, tracking social situations is mandatory for them. The social factors influencing Facebook and its utility include

  • Expectation of High quality of Services: Today's population does not believe in mediocre service at a lower price. Instead, they prefer the best. Thus, this is Facebook's opportunity to show an impact by improving its service quality.
  • Online purchase rate has increased: With the increase in online shopping, Facebook can use small retailers and make it a part of their services.
  • Highly Supportive Corporate Social Responsibility: Facebook can satisfy its customers by enhancing its corporate social responsibility.

Technological factors:

With how fast the present generation is with their smartphones, advanced technologies, and cool gadgets, a company should know the places they need to improve. Technological advancement is a plus point that a company can have. The technical factors affecting a social site like Facebook are as follows:

  • Everyone is using smartphones now: Smartphones are frequent now, and Facebook is the most common application there. Thus, increasing the opportunity to have a bigger market for the company.
  • Online social media companies have increased: Facebook is not the only company. It faces competition in the market from Twitter, Google, TikTok, Snapchat, and more.
  • Online retail firms and their diversity: Diverse online retail firms are an excellent threat to the company as they can receive more retain time, and customers can make a shift from Facebook.

Environmental factors:

Environment-friendly behavior nowadays is a pretty significant thing to maintain. If you want a company to get public approval, they should take care of this aspect. So, the environmental factors that affect Facebook are as follows:

  • Business sustainability is the main focus: Enhanced business sustainability can help Facebook reassure its standpoint on taking care of the environment.
  • Waste disposal standards facing increased complexity: better policies regarding waste disposal can play a vital role in gathering Facebook a good name in the market.
  • Threat and opportunity of climate change: Facebook faces server issues due to climate change, which threatens the company's future.

Legal factors:

The legal factors directly relate to the legal ideas of a nation. A company, at any cost, has to ensure that it never messes up any legalities. Otherwise, its brand value and reputation will come under fire, which is not ideal for a successful business. Therefore, the legal factors that affect Facebook are as follows:

  • Patent laws are getting better around the globe: Facebook can legally protect its newly launched products and services with the help of this law.
  • Free Wi-Fi is a need: With the help of free Wi-Fi, Facebook can reach a broader spectrum of society from remote areas.
  • China's internet service regulations: Though China banned Facebook, it still can work on its terms and conditions with the Chinese government to relaunch itself in the country.
  • Online data facing increased regulations: The Cambridge Analytica mess is the reason behind the increased online data regulations faced by Facebook.

4. How to Do a PESTEL Analysis in EdrawMax

  • Step - 1: Preparation
  • If you are using the offline version of EdrawMax, open the tool in your system. If you wish to access remote files, head to and log in using your registered email address. If this is your first time using the tool, you can register with your personal or professional email address. Go to 'Marketing' diagrams under Business diagram type and click on 'PEST Analysis.'

    How to Do a PESTEL Analysis in EdrawMax
  • Step - 2: Template Selection
  • EdrawMax has thousands of free templates. Head to the Template section on the left and type 'PESTEL Analysis' to see all the pre-built PESTEL Analysis templates like Netflix PESTEL Analysis, Amazon PESTEL Analysis, IKEA PESTEL Analysis, and more. Check the template that resonates closely with your business model. Click on 'Use Immediately' to import the template's contents to the EdrawMax canvas. You can start customizing the PESTEL analysis diagram as per your requirements. If you want to draw the PESTEL analysis diagram from scratch, you can click '+.' It will open up the user-friendly canvas of EdrawMax that has several features that ease your efforts in making PESTEL analysis diagrams.

    How to Do a PESTEL Analysis in EdrawMax
  • Step - 3: Add Textual Information
  • PESTEL Analysis diagram requires you to add Political, Economic, Sociological, Technological, Legal, and Environmental content so that the reader will understand what influences an organization. Use the PEST symbols from the left side and add the content to your PESTEL analysis diagram.

    How to Do a PESTEL Analysis in EdrawMax
  • Step - 4: Customize
  • EdrawMax gives you ample options to customize your PESTEL Analysis diagram. From changing the background to adding content, you can customize the diagram in any way you desire. In addition to this, you can go ahead and change the background color, modify the text, add hyperlinks, add multiple pages, add images, and even add vector-enabled texts to your PESTEL analysis diagram.

    How to Do a PESTEL Analysis in EdrawMax
  • Step - 5: Export & Share
  • Once satisfied with your PESTEL Analysis diagram, you can export it into multiple formats, including Microsoft, JPEG, PNG, Visio, HTML, and more. EdrawMax lets you share your PESTEL Analysis diagram on social media platforms, like Facebook, Twitter, Line, etc.

    How to Do a PESTEL Analysis in EdrawMax
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5. Key Takeaways

EdrawMax gives you ample options to customize your PESTEL Analysis diagram. From changing the background to adding content, you can customize the diagram in any way you desire. You can also modify the content and take information from this PESTEL Analysis guide. With EdrawMax, you can even add hyperlinks to your PESTEL analysis diagram to provide more information to your readers.

As you saw in this PESTEL Analysis of Facebook, creating a PESTEL analysis diagram using EdrawMax Online is not only an easy approach to doing a detailed analysis but also proves to be effective for those who prefer visuals over detailed guides. EdrawMax is available for macOS, Windows, and Linux, and you can download the PESTEL Analysis diagram software to work on different industries or companies as required.


  1. CIPD. 2022. PESTLE Analysis | Factsheets | CIPD., [online] Available at: (Accessed 30 August 2022).

  2. Team, M., 2022. Facebook PESTLE Analysis | MBA Skool., [online] MBA Skool. Available at: (Accessed 30 August 2022).

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