PESTEL ANALYSIS

A PESTEL analysis is a framework or tool used by marketers to analyze and monitor the macroenvironmental (external marketing environment) factors that have an impact on an organization.
PESTEL stands for:

P Political

E Economic

S Social

T Technological

E Environmental

L Legal

Political Factors: Doing businesses in Bangladesh becomes a challenge when there are periods of
political turmoil occur in the country. In various different events of political disasters we discover
various business outlets losing their sales and also closing their business temporarily. This is a
problem for the entrepreneurs as a whole in various aspects. Our business might have the same
types of problems in an economy like Bangladesh during such political disasters. In various
different conflicts from the opposing political party we might be entitled to unexpected closers of
our manufacturing plants. Even with the partner stores of different parts of the country, they
might even close which might be also a problem for us. This might result in our sales to reduce
and we might have to keep a large amount of Inventory in our ware house, which might be

obsolete if it lasts for a long time. There are various other reasons which might be a problem for
our business to sustain in the long run. Production facilities and company warehouses may get
vandalized due to the political turmoil, and as a result some extra expenditure can be a burden for
us.

Economic Factor : Bangladesh is considered to be a developing country and hence the economic
development is gradually rising unlike. According to a recent opinion poll, Bangladesh has the
second most pro capitalist population in the developing world. Between 2004 and 2014 the
aggregate real GDP growth rate for Bangladesh was 6%. The economy is significantly increasing
and is led by export oriented industrialization. For our packaged coconut-water business, in order
to provide for the GDP of Bangladesh, we must aim for becoming export oriented in the long run.
We will be recently starting as a small business but as our business grows we would be producing
more and contributing more to the GDP of Bangladesh. Within the long run we must be export
oriented and led to the export oriented industrialization in order to be economic leaders.
Therefore, we have a plan to go as large scale investors into the economy in the long run. When
we invest as large scale investors we would be exporting our product (bottled coconut water)
abroad in order to participate more into the GDP and GNP of Bangladesh.

Social Factors: Despite having poor gross domestic product (GDP) per capita, the nations stride
in social sector is nothing short of impressive. Human Development Indicators (HDI), which are
widely seen as measures of a countrys social as well as economic progress, capture Bangladeshs
stride in social successes. What has led to social sector development in Bangladesh? There are a
number of factors. First, Bangladesh has been enjoying a prolonged peace dividend thanks to its
fairly tranquil borders (it shares boundaries with India and Myanmar) that do not necessitate
higher military spending and thus leaving space for education and healthcare expenditure.
Bangladeshs per capita defense spending is one-third of Pakistans and half of Indias. Indeed,
Bangladeshi defense forces are rather busy in building peace around the world thereby
contributing to the countrys steady remittance flows. From the view point of social factors our
product is a product for mass market as we will have different pet bottle sizes priced at very low
prices so that everyone can enjoy this healthy drink and this product that we will manufacture is
also for people of all ages so that everyone gets benefitted from this product of ours. And we
expect that this product of our will not hurt any sentimental value of people of any religion or
belief which can result in great success for our product.

Technological Factors: Nowadays Bangladesh is experiencing the growth in the various types of
modern technologies. Almost all the citizens of Bangladesh are entitled to using at least some of
the modern technologies which we use every day. For example, the growths of social network
users are increasing day by day as most people are users of facebook or at least email. Therefore
we would be conducting business by following such technological growths in Bangladesh.
Almost everyday people log into their facebook accounts and receive various invitations of events
or whatsoever through facebook. So we would open a variety of fan pages of our product in order
to increase the awareness of our product. Rather than using the hard printed copy of newspaper
nowadays we experience people reading online blogs, websites and even twits. Therefore, our
marketing strategy would be designed according to this technological growth. We would be
having various blogs and fan pages as mentioned earlier. For production purposes we are going to
import the processing machines from China and we will personally go there and inspect all the
machines before buying them to ensure maximum efficiency of the machines and periodically we
would bring in foreign engineers to inspect our machines so that they function properly over a
period of years. Also as we are planning to sell the coconut-water in plastic bottles due to this our
sales volume might increase because they will be very easy to carry and also to dispose.

Legal Factors: Bangladesh government has various regulations related to the labor employment,
wage rate and other economic factors. The constitution prohibits forced and child labor. There are
inspection mechanisms to guard against forced and child labor, but resources for enforcement are
scarce. Regulations regarding minimum wages, hours of work and occupational safety and health
are not strictly enforced. Therefore all these factors would affect the type of work we would do in
our manufacturing plants in the work hours. Bangladesh's Constitution guarantees the right to join
unions, and, with government approval, to form a union. But some people are harassed and fired
for trying to organize. With the exception of workers in the railway, postal, telegraph, and
telephone sectors, government civil servants, military, and police are forbidden to join unions.
Instead they have joined associations which perform functions similar to labor unions. In this
regard we will ensure maximum safety for our workers in the manufacturing plants and in our
offices and also make sure that no biased decision are taken against any employees irrespective of
gender, caste etc.

Environmental Factors: These factors have only really come to the forefront in the last fifteen
years or so. They have become important due to the increasing scarcity of raw materials,
pollution targets, doing business as an ethical and sustainable company, carbon footprint targets
set by governments. This factors is very important for the future goodwill of our company and
without goodwill we will not be able to create our brand value and ultimately will fail to stand as
market leaders. For this reason we will make sure that the dispose of waste materials emission
from our manufacturing plants are as low as possible.

PORTERS FIVE FORCES

Porter five forces analysis is a framework to analyze level of competition within an industry and business
strategy development. It draws upon industrial organization (IO) economics to derive five forces that
determine the competitive intensity and therefore attractiveness of a market. Attractiveness in this context
refers to the overall industry profitability. An "unattractive" industry is one in which the combination of
these five forces acts to drive down overall profitability. A very unattractive industry would be one
approaching "pure competition", in which available profits for all firms are driven to normal profit.

Bargaining power of buyers: LOW

The bargaining power of customers is also described as the ability of customers to put the firm under
pressure, which also affects the customer's sensitivity to price changes. The bargaining power of buyers or
customers will be low because its a whole new product in the market. So they will not be thrilled if price
changes occur because its a totally brand new healthy product we are offering and people will be willing
to buy.

Bargaining power of suppliers: HIGH

The bargaining power of suppliers is also described as the market of inputs. Suppliers of raw materials,
components, labor, and services (such as expertise) to the firm can be a source of power over the firm
when there are few substitutes. Bargaining power of suppliers is high because there are good existing
numbers of pet bottle manufacturers and coconut suppliers in our country. The coconut suppliers are
namely (3M Argo Industries Ltd, Mum Consortium Ltd and Integrated Investments). Though the number
of suppliers of our raw materials are less and they have been in the business for so long so their
bargaining power will be high.

Threats of New Entrants: LOW

Threat of new entrants is very low, as it will be very costly for a new business entity to enter into the
market with a new healthy product as ours. So it will be very hard for any company to enter the market
with this barrier. So the new company just cannot enter & do their business in this market .

Threats of Substitute Products: LOW

In recent years, there has been increasing awareness of the health benefits of coconut juice, leading
to a sharp increase in the demand for the product. The drink can be marketed as a natural energy
drink due to its high potassium and mineral content. It is also known for having low levels of fat,
carbohydrates, and calories. So there are not enough substitutes available for our products.

Rivalry among the firm: HIGH

Rivalry with the several existing companies like PRAN Bangladesh, Shezan can be anticipated as high
because they have been into the market for so long and have earned their fair share of customers with
their goodwill. As we would claim that our products are healthy so can they. So the rivalry among the
firms will be high.

SWOT ANALYSIS

STRENGTHS:
Good quality products.
Low prices.
Strong distribution channel.
Easy manufacturing process.
Easily available raw materials.
Well developed strategies
Good marketing skills and services

WEAKNESS:
The idea can be copied by others.
Taste differs from the natural green coconut water due to preservatives.
Green coconut water cannot be preserved for longer period.

OPPORTUNITIES:
Monopoly market
Large market
High demand

Might have a chance to get subsidies by Govt. to export(in future)

Changing social trends
Health awareness
Limited option in healthy drinks

THREATS:

New entrants copying the idea

Lack of innovation
Rate of inflation
Shelf life of the product