PESTEL Analysis

PESTEL Analysis is a management framework that provides a structure to explore the broad environment that might impact an industry and the firms and consumers which exist within that industry. PESTEL includes six areas for exploration, which will be listed and ranked below based on industry impact and importance for our venture.

1. Environmental

Ecological issues affect the music industry and fans in various ways.Issues like resource shortages and changing prices can make organizing music festivals more expensive. Also, there are rules to be more eco-friendly, which can add costs. But, there's a silver lining:

People today care more about the environment, so music festivals can change for the better. They can reduce plastic waste, use cleaner energy sources, and promote eco-friendly transportation. Using cleaner energy can also save money. Making festivals less polluting can keep people healthier. And planning festivals carefully can help avoid problems. Plus, new tech ideas inspired by ecological challenges, like virtual experiences, can make festivals more fun.

Working together on eco-friendly projects globally is essential. But festivals need to be honest about their efforts, so they don't just look eco-friendly without really doing it. When they're sincere, they can build trust with fans who care about the environment, benefiting both the industry and fans.

2. Social

There has been a shift in the market where consumers feel more environmental responsibility in the products that they support. This shift in consumer values makes companies more interested in sustainable products and services because of the demand. Social media is a big part of the change in perception. With global crisis and climate change on the rise, many companies are looking to be more environmentally friendly in order to help the planet, but also help their brand’s image. In the industry of music festivals, there is a big issue of unsustainable habits. The main issue being waste and energy consumption. Tackling these issues will make the music festival industry more sustainable, which will draw in more consumers. The industry of food at music festivals is a difficult problem to solve. Food waste, along with packaging that gets thrown on the floor or in the trash is a big concern. Biodegradable and recyclable/ reusable packaging will be the first step in fixing this issue. 

3. Legal

Laws and regulations will vary with each state. So, when planning a large event, the event organizers must be well-informed about any permits needed to host an event in their area. This could include a noise permit, alcohol license, building permit, event permit, etc. With thousands of people attending an event, the event organizers must ensure safety of all participants. Consumers should expect to be in a healthy and safe environment with little worry of injury and danger. If the event will impact the environment, the organizers will need to comply with environmental regulations. The event should be accessible to people with disabilities. It’s also important to consider the use and sale of alcohol when minors are present. In this case, the organizers should consider alcohol-free zones and restrictions. Organizers may also want to consider public health and COVID-19 measures and implement appropriate safety measures. 

4. Political

The government influences the music festival industry with legal requirements and policies, which can vary depending on the specifics of the event and its location.  Legal requirements for these festivals broadly fit into the categories of Licensing Law, Food & Hygiene Law, Environmental Law, Health and Safety Law, and Copyright Law.  Of these government regulations, Environmental Law will have the most impact on our venture as our main focus is integrating sustainable design to create an environmentally friendly, zero waste festival.  The ISO (International Organization for Standardization) has a specific standard referred to as ISO 20121, which outlines the best practices for controlling the social, economic, and environmental impacts of the event to ensure that it follows these laws.  We can utilize this to implement strategies for sustainability, including ideas such as eliminating plastic water bottles and encouraging public transportation to and from the event.  The standard can also help to cut unnecessary costs in addition. 

5. Economic

When considering economic factors, it’s important to recognize how expensive eco-friendly power will be. The pricing on eco-friendly power, for instance, may be more expensive to install than traditional forms of energy, but may save on price in the long run. For short festivals, however, the eco-friendly power may only be used for a couple or few days. This also goes for the price of eco-friendly kitchenware, as the raw materials to make the kitchenware may be expensive. It’s also hard to predict the pricing of raw materials for future events. Such pricing will be a factor for consumers, sponsors, and food catering companies, as it would be ideal to minimize the money spent. When factoring in profitability (depending on the festival organizer’s goals), use of expensive materials and methods may lead to increased festival prices for consumers. 

6. Technological

With the evolution of technology, we are learning and growing at rapid speeds.  New materials and even manufacturing methods are being developed and as consumers, it is super exciting to see progress in this area.  Sustainability has been a big trend recently and we believe that it is super important and beneficial when it comes to creating a big event like music festivals.  But, as much as we would like to implement sustainability into our project, sustainable approaches and products are still very new with a bunch of pros and cons.  As we focus on creating solutions for our problems, it is important to not only look into what is out there, but to also find creative approaches to getting to that solution.  There are no perfect products out there, but finding solutions with what technology we have and the constraints given, will ultimately improve the consumer experience and the technology industry as a whole.