Human Resource Managment

Industrial Analysis

It is a study of marketing dynamics of food industry. It comprises of different factors which effects on profit and loss, the target market, segmentation etc. along with this some other factors are explained below:

Current Market Condition and Industry Attractiveness:

Pestle Analysis

It plays an important role in many people lives as well as in the world they are taking resolutions to be healthy. Looking towards the current situation of the market the consumer trend towards the health is improved. According to this analysis, we can come across different ways to increase the business opportunities of any company.

P = Political Factor

It includes some sort of legalization of the products by government. Now a days there are so many products which are very harmful for humans and also fake that’s why people are afraid to select products, so it is important to choose the product which is authentically tasted by bureau and authorized by the government of Malaysia.

E = Economical Factor

These factors influence the products in many ways. One of the main factor is equipment downturn: as the number of customers are likely to reduce because in every kind of business there are ups and downs. In this way if a customer has less income due to inflation he will reduce their expenses and will avoid buying expensive products. So according to pestle analysis this can be a big threat to the industry. So during this time, there is a need to offer promotions and to give discounts which could reduce the prices.

S = Social Culture

In this factor, we consider problems related to people’s health. Such that of the major problem is obesity so people are looking towards such nutritious food which helps to keep them healthy and fit. . As there are so many products coming in the market which contains things that are not Halal e.g. artificial flavors that are harmful.

T = Technological Factor

This factor is less related to our food industry but now a days people prefer to have latest machinery which can guide them throughout every process. For processing technology helps in a way that it could provide latest equipment.

L = Legal

It is the basic factor when it comes to sell online product. As people are very attentive while buying products online specially when it comes to health.

E = Environmental

Environmental factors badly affects the food industry. As we can say due to some natural hazards, the transportation is affected, the delivery of the products is not done on time, whereas due to destruction in electricity cables, electricity is not provided to the industry which affects in the processing of the products. Due to soil erosion and deforestation, the growth of vegetables is affected.

Porter 5 forces analysis:

Threat of new entrants:

There are many different brands coming new to the market. Those who are setting up there new business they come up with low prices and promotions which attracts the customers not just nationwide but also internationally. So due to their low costs it will damage our business. To avoid this we also need to come up with different promotions so we could not lose our customers.

Bargaining power of supplier:

To make our place in the market, we must sell or use equipment which are strong enough to handle by the customers no matter about height, size or weight because the customers badly insult the supplier in case of any problem. If we looks towards are macaroni supply we must provide those which are halal, natural and affordable for every class of the country.

Bargaining power of buyer:

In market our industry faces a high competition as there are hundreds of other brands which are selling the same product online. Whereas now a days people depend on price factors when it comes on buying a product as they go with product which is cheap and which has best taste. Another factor is that people go with the old brands as they are more experienced like in our case, people don’t consider the price and they are willing to buy our macaroni at any price because they like our taste and they have trust on us that we have natural ingredients for preparing it. So the power of buyers is very high. If the brand provides the customers with proper price and quality of the product, they would keep on using the same otherwise in case of any problem they might jump onto some other brand. Anyhow there are some people who just go with brand name and they don’t care about the prices.