A company is considering entering the home energy-storage ma…
A company is considering entering the home energy-storage market. Its strategy team identifies four developments: PESTEL factor Development Political Government incentives for residential energy storage are expanding. Economic Interest rates remain high, increasing financing costs. Social More homeowners value energy independence and reliability. Technological Battery costs are falling and storage capacity is improving. A manager concludes: “Three of the four factors appear favorable, so entering the market is justified.” Which response best identifies the limitation of this reasoning?