STEEP stands for Sociocultural, Technological, Economic, Ecological and Political/Legal factors in the general environment, which have impact on the firm’s strategy decision.
STEEP Factors
Factors | Description | Considerations |
|---|---|---|
| Sociocultural factors | Sociocultural factors capture societies’ cultures, norms, beliefs, and behaviors, as well as demographic shifts in population distribution. | - Ideological issues and concerns - Lifestyle and fashion trends - Population growth and segmentation - Age distribution - Media views and influence |
| Technological factors | Technological factors account for technology changes and trajectories; including the emergence of new technologies that may disrupt a firm or industry. | - Technology maturity - Emergent technology developments - Pace of technological change - Research funding and focus - Licensing and patenting norms and regulations |
| Economic factors | Economic factors account for shifts in economic indicators and trends and the impact of those indicators and trends on a firm and industry. | - GDP growth rates - Interest rates - Employment levels - Price stability (inflation & deflation) - Currency exchange rates - Income distribution |
| Ecological factors | Ecological factors concern broad environmental issues pertaining to the natural environment, global warming, and sustainable economic growth. | - Consumer preferences and demands for sustainable products and services - Environmental regulation and incentives - Access to sustainable resources (e.g. natural resources) |
| Political/Legal factors | Political and legal factors account for the processes and actions of government and for changes in relevant laws, regulations, policies, and incentives. | - Industry laws and regulations - Political party policies & power distribution - Ability to influence political decisions - Voting rates and trends - Power and focus of regulatory agencies |