Blockchain strategies  175

Application of PESTLE model to assess Blockchain use case

PESTLE is a powerful model to analyse the organisation internal and

external challenges, including how it can achieve competitive advantage.

PESTLE model used along with SWOT can be like ice on the cake as it can

further provide insights on current and future challenges and also what

actions can be taken to overcome the challenges before it is too late.

PESTLE model can be applied to analyse the organisation’s internal as

well as external strengths and weaknesses and provide insights on how an

organisation can improve to capitalise on the market opportunities.

In this section, we will apply PESTLE model on the blockchain use case

to assess the organisation capability to compete in the market through

internal as well as external capabilities.

• Political: Blockchain technology is under scrutiny from governments

and can have a big impact due to potential new policies and standards

enforced by governments. As the technology is maturing for main-

stream use, policies are still under progress. There is also uncertainty

as any new law or policy can have direct and indirect impacts on

blockchain adoption by organisations.

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⚬Recommendations:

– My recommendation for organisations is to watch the policies

for country the businesses exist in. Organisations also need to

watch the policies globally where they do business or their cus-

tomers exist. Usually, regulators always send the draft policies

to get feedback from the key organisations in the country to

make sure that policies do not impact them in a negative way.

– Another recommendation for organisations is to make rela-

tionships with regulators and politicians to get insights on

the policies and also contribute wherever possible to assist in

designing the policies or laws for blockchain.

– The blockchain strategy for an organisation should be agile

enough to make changes to their business model as soon as

new policies are enforced.

– Finally, organisations need to assess where they stand and the

impact of political factors to their business model before final-

ising the blockchain strategy and establish the business mod-

els. This assessment can provide sufficient insights to decide if

launching blockchain business in a certain country would be

beneficial in short and long terms.

• Economic: Every business gets impacted by economic outlook of the coun-

try and market like interest rates, taxation, economic growth, inflation or

recession. Blockchain use cases are no exception to economic outlook.

The organisation strategy should consider these economical changes, and

their business model should have enough liquidity to survive in case of

drastic changes in the economic factors. The organisation also needs to

diversify their business model to face off the short-term negative impacts.