The benefits of using PESTEL analysis in this situation are:

1. PESTEL analyses the external environment affecting the industry: This is one of the main benefits of using PESTEL analysis. It provides a holistic view of the external factors that can potentially influence the strategic decisions of a company. These factors include Political, Economic, Social, Technological, Environmental, and Legal aspects. By understanding these factors, a company can anticipate potential opportunities and threats in the market and adjust its strategies accordingly.

2. PESTEL analysis helps to better understand critical success factors: By analyzing the external environment, PESTEL analysis can help a company to identify the critical success factors that are necessary for achieving its objectives. These factors can be used as a basis for developing competitive strategies.

3. PESTEL is well suited in identifying the competitive forces faced by newcomers: For new companies entering a market, PESTEL analysis can be particularly useful in identifying the competitive forces they will face. This can help them to develop strategies to overcome these challenges and gain a competitive advantage.

Note: The first option you provided, "PESTEL is widely used to analyse the firms internal resources and capabilities" is not accurate. PESTEL analysis is primarily used to analyze the external environment, not the internal resources and capabilities of a firm. For analyzing internal resources and capabilities, tools like SWOT analysis or Resource-Based View (RBV) are more appropriate.

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The benefits of using PESTEL analysis in this situation are:

1. PESTEL analyses the external environment affecting the industry: This is one of the main benefits of using PESTEL analysis. It provides a holistic view of the external factors that can potentially influence the strategic decisions of a company. These factors include Political, Economic, Social, Technological, Environmental, and Legal aspects. By understanding these factors, a company can anticipate potential opportunities and threats in the market and adjust its strategies accordingly.

2. PESTEL analysis helps to better understand critical success factors: By analyzing the external environment, PESTEL analysis can help a company to identify the critical success factors that are necessary for achieving its objectives. These factors can be used as a basis for developing competitive strategies.

3. PESTEL is well suited in identifying the competitive forces faced by newcomers: For new companies entering a market, PESTEL analysis can be particularly useful in identifying the competitive forces they will face. This can help them to develop strategies to overcome these challenges and gain a competitive advantage.

Note: The first option you provided, "PESTEL is widely used to analyse the firms internal resources and capabilities" is not accurate. PESTEL analysis is primarily used to analyze the external environment, not the internal resources and capabilities of a firm. For analyzing internal resources and capabilities, tools like SWOT analysis or Resource-Based View (RBV) are more appropriate.

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The benefits of using PESTEL analysis in this situation are:

1. PESTEL analyses the external environment affecting the industry: This is one of the main benefits of using PESTEL analysis. It provides a holistic view of the external factors that can potentially influence the strategic decisions of a company. These factors include Political, Economic, Social, Technological, Environmental, and Legal aspects. By understanding these factors, a company can anticipate potential opportunities and threats in the market and adjust its strategies accordingly.

2. PESTEL analysis helps to better understand critical success factors: By analyzing the external environment, PESTEL analysis can help a company to identify the critical success factors that are necessary for achieving its objectives. These factors can be used as a basis for developing competitive strategies.

3. PESTEL is well suited in identifying the competitive forces faced by newcomers: For new companies entering a market, PESTEL analysis can be particularly useful in identifying the competitive forces they will face. This can help them to develop strategies to overcome these challenges and gain a competitive advantage.

Note: The first option you provided, "PESTEL is widely used to analyse the firms internal resources and capabilities" is not accurate. PESTEL analysis is primarily used to analyze the external environment, not the internal resources and capabilities of a firm. For analyzing internal resources and capabilities, tools like SWOT analysis or Resource-Based View (RBV) are more appropriate.

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