Double a Thailand Pest Analysis

Marketing Analysis – PEST analysis [pic 1] the import for Paper has decrease comparing to recent years as shown in the figure. From PEST analysis we can understand more on the macro-environment of paper industry. This can help identify the difficulties face by Double A under current condition.

Political:

        Government shows a negative on paper usage. From the advertisements provided by the government, they promote reducing of usage of paper products. Government have great influence on public educations. The attitude shown by the government will decrease the usage of paper by citizens. This hidden the development of paper market in Hong Kong.

Economical:

[pic 2]

        As Double A is located in Thailand, the exchange rate of Thai Baht to Hong Kong dollars affects a lot on the cost of exporting and the supply price. From the statistics, Thai Baht is depreciating against Hong Kong dollars. This means the price of product can be lowered after exporting to Hong Kong. Also, the exporting cost will be cheaper in the calculation of Hong Kong dollars. This indicates that Double A has a benefit on economical aspect on lowering production cost.

Social:

1. People nowadays are looking for convenience. The new way of living rely more on the internet but not tangible copies. Online payments, online learning, online assignment etc. The traditional way of using papers are being replaced by computers. Elasticity on paper decrease and people are tend to accept the new technology.
2. Environmental friendly is promoted. People are aware of the impact brought to the nature of using too much printing papers. The alternative way of this is to use recycled paper or reduced the usage of paper. This will greatly decrease the demand for paper.

Technological:

        The technological change nowadays does not benefit the market of papers. Electronic devices such as tablets are becoming more common in the society. Tablets have the function of reading thus they add as one of the substitutes to paper. The usage of e-book will decrease the demand for paper.

Environmental:

        Environmental group is giving pressure to paper manufacturing company. It is believed that the other than the cutting of trees, the chemicals released during the production process will harm humans’ living environment. Destroying of forest will reduce the ecological value. Social responsibility and humans’ right are addressed by the public.