Importance of PEST Analyses

Here is an interesting article in the New York Times about how the market has changed for creative artists due to digital technology. This is an example of why doing PEST analyses is important. As there have been developments in the digital technology world the cost to deliver creative works such as songs and movies greatly decreased making it easier for amateurs to enter the market. Yet, while it is now easier for people to enter the market they are not able to earn a high market share. It seems like the markets are growing as a whole with the established superstars still claiming the most share. New entrants to the market should probably not have market share as a pricing objective but they do have a chance at a career due to the technology changes.