PESTLE analysis for the sport and recreation

sector

 PESTLE means: political, economic, social/cultural,

technological, legal, environmental

 An description of trends (known) and emerging issues

(unknown) that may impact on our sector

 Tends to be an external analysis, and complements a SWOT

analysis
 Notes/Qualifications

 Developed through brief analysis of primary sources and an

internal discussion group

 No external consultation

 No “so what” analysis or discussion

 Political

Trend/Emerging Issue Impact Area Examples

Globalisation International sporting

agreements (eg doping)
Sponsorship
Location of competition
opportunities
Changes of government or political Long term planning
ideology Revenue
Influence
Policy platform
Local government reform Community wellbeing
outcomes
Facilities
 Political

Trend/Emerging Issue Impact Area Examples

Legislation (eg gaming, alcohol Roles and responsibilities
sponsorship) Influence
Risk averse approaches in government Events
Innovation
Terrorism Event hosting
 Economic

Trend/Emerging Issue Impact Area Examples

Government spending patterns – incr Type of programme
health, decr education spending, constant initiatives
spend on services Roles of Govt
departments
Company awareness of health related Business ‘leading the way’
productivity gains and driving community
wellbeing
Emerging economies – different business Re-focus existing
models programmes/initiatives
like Govt walk the talk
Competition for sponsorship dollar Harder to get funding
New revenue models
 Economic

Trend/Emerging Issue Impact Area Examples

Increasing facility costs and demand Predominance of private
gyms (higher costs)
impacts on affordability
Decrease in gate sales
Increasing fuel (planes and cars) costs NZ less desirable as an
event destination
Localised events and
opportunities
Reducing disposable income Recreation becomes a
luxury rather than basic
need
Increasing requirement for commercial Clubs, RSOs
viability to remain competitive
 Social/Cultural
Trend/Emerging Issue Impact Area Examples
Increasing multi-cultural society ‘asianisation’ and
‘browning’ of NZ changes:
– typical kiwi sports
–how sport is organised
Active vs passive recreation trends Competition between the
two will continue in multi
cultural society.
National identity It will change…how do
you express it in a policy
environment?
Aging population More retirees and fewer
workers – less tax
Changing needs/demands
 Social/Cultural
Trend/Emerging Issue Impact Area Examples
Changing generational attitudes – the Govt will have less
“me” generation influence/relevance
Rise of individual (not
team) sports
Desire for greater choice
Changes in traditional life cycles and How and when we carry
family structure (single parents, working out recreation /sport will
parents) change
Availability of volunteers
Flexible work time When we carry our
sport/recreation activities
Growth in influence of minority groups Greater involvement of
woman, Maori, masters
programmes
 Social/Cultural

Trend/Emerging Issue Impact Area Examples

Work-life blur Need to work smarter not
harder.
Business ‘leading the way’
to promote productivity.
Time is money Fewer volunteers
‘Quick fixes’ to achieve
same outcome e.g. drugs.
Impact of media on society values and Viability of gate sales
knowledge Growing dependence on
multi media
 Technological

Trend/Emerging Issue Impact Area Examples

Emergence of virtual gaming Decline in traditional sports
Changes to resources e.g.
ball vs computer
Formation of virtual communities led by How we exercise will change
mobile phones and internet (no longer on sports fields
and in gyms)
Technological change outpacing Society values and ethics
social/cultural change will be challenged – how
human is human?
Rise in science, R&D in China, South NZ competitiveness
Korea, India NZ access to technology –
relationship to USA
 Technological

Trend/Emerging Issue Impact Area Examples

Medical advances – bionics, genetic Changing ethics – are we
engineering, drugs ready for drugs in sport
and bionic sportspeople
Home theatre technology Declining gate sales
More couch potatoes
 Legal

Trend/Emerging Issue Impact Area Examples

Resource Management Act Facilities – their location,
design and impact
Liability and Risk issues Fewer volunteers
Reduced support for
events
Selection challenges Increased legal and
insurance costs
 Environmental

Trend/Emerging Issue Impact Area Examples

Changing attitudes to public access to Breadth of activities that can
land and water – e.g. Govts public be undertaken changes if
access policy public access routes to
coast/lakes/rivers/parks etc
change
Urban consolidation Competition for inner city
facilities
Competition for water – e.g. hydro Reduced venues for sporting
activities
Biosecurity issues Impacts NZ as an event
destination – e.g. weed in
lakes impacts rowing
 Environmental
Trend/Emerging Issue Impact Area Examples
Global warming Alpine sports – snow lines
recede may change
economics of events
Coastal areas – preventing
water inundation may
impact economics of
events.
Public demand for “green” facilities and Cost of hosting events
sustainable development may increase
Seen as more sustainable
Perception of NZ “wing print” Cost to fly to NZ is
prohibitive – no R&D for
replacement for jet fuel
yet!
 Environmental
Trend/Emerging Issue Impact Area Examples
Conservation Act DOC increasing area of
‘public conservation
estate’ – more
opportunities for
recreation
Increased demand for
urban recreation
environments
Increasing pollution Access to natural facilities
Training and recreation
environment