Pestel Analysis of a Business Model  

Throwback Fitness is a gym operating in New York City.  This gym is successful and is considered one of the most modern gyms in the area as it has many instructors and equipment. The instructors use modern, scientific, and technological methods in helping their clients train and attain their exercising goals. The marketing aspect and analysis involving the 4-Ps was done, and it was found that the gym would be a success in the long run. However, it is essential for the business owners to conduct as PESTEL analysis to determine how the business might perform if the current condition change (Sekhar & Zablon, 2017).  A PESTEL analysis can be described as a framework that can help in analyzing the macro-environmental issues and factors that can have a significant impact on the operation and performance of a business entity. This tool is typically used in collaboration with other business analysis tools such as the SWOT and the Five Porter’s Forces as this is the best way the tools can provide the owners with a clear understanding of the situation.

Economic factors

Economic factors affect the growth and performance of a business organization. Factors such as growth rate, interest rate, and inflation rate within an economy determine how a business organization is going to perform (Sekhar & Zablon, 2017). These factors determine how strong an economy is, and a business organization is operating in a robust economic environment such as the New York City is bound to succeed. The New York City economy has been characterized by growth, low inflation rate, and the interest rate is stable meaning that business owners can access credit to expand their business entities. All these factors favor the success and the expansion of Throwback Fitness. The owners can get credit advancement from their bankers or any financial institution in the area and expand their business organization. They can also choose to open more branches to help increase their business reach and attract more clients (Sekhar & Zablon, 2017). Other economic factors of New York City that should be considered should include the unemployment rate, the disposable income, and the per capita income of the city residents. This is very important as it helps the business owners to know if the people will be able to afford the product or the services they are offering. New York City is characterized by high per capita income, low employment rate, and this means the residents of the City have a high disposable income. This means that the Throwback Gym will never lack clients; a majority of the people in the City will be able to afford their services.  

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Political Factors 

Political factors play a significant role in determining whether a business organization will be successful in its operations. A political environment characterized by stability, low corruption levels, favorable taxation policies, freedom of expression, and less government regulation bound well for better business operations. These are the political factors prevailing in New York City, and they are bound to provide Throwback Gym with a pleasant environment where they can operate successfully and profitably (Sekhar & Zablon, 2017). The City under the current mayor has ensured that the criminal gangs that ran the City and extorted business organizations have been eradicated and this has helped provide businesses with an excellent environment to run their operations. 

Legal factors

Every jurisdiction has laws and regulations that all business organizations operating in that jurisdiction have to follow and adhere to all times. Failure to obey these laws can lead to penalties, imprisonment of the business owners, or the revocation of the business operation license. In New York City, there are laws such as employment laws, data protection laws, copyright and patent laws, and consumer protection laws, and health and safety laws. The management team at Throwback gym should ensure that they comply with these laws and regulations at all times (Sekhar & Zablon, 2017). In employment laws, for example, the gym should ensure that they do not discriminate against any employees and that the salaries and benefits they offer meet the standard set the law. With regards to health and safety laws, the gym should ensure that they have safety equipment that protects both workers and clients. This is very important as it ensures that as a gym is where someone may be hurt very easily.  

Technological factors

Technological factors can be used to help an organization advance its competitive edge. Throwback organization can use new and technologically advanced products to help attract clients. The management team should also make use of technological communicating mediums to try to reach out to a broader client base. This can be attained using different social media pages such as Facebook, Instagram, YouTube, and Twitter (Sekhar & Zablon, 2017). The use of these social media pages will increase the number of people who will know about the existence of Throwback Gym, and it is bound to increase its membership.


From the above discussion, it is clear that the prevailing environmental factors in New York City are favorable to the success of Throwback Gym as a business. If the management team of the gym put sound strategic systems in place, then the business is bound to succeed.  


Sekhar, S., & Zablon, A. (2017). Business Policy and Strategic Management. Chicago, IL: 

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