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Pestle Analysis Case

Autor:   •  August 1, 2015  •  Case Study  •  1,455 Words (6 Pages)  •  2,846 Views

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  1. Environmental Factors

SWOT Analysis of Pokka

STRENGTHS

  • Pokka is rated as the number one Green tea brand, boasting a market share of around 70% in Singapore.
  • Pokka in Singapore targets consumers’ health as tea has the benefits of helping consumers calm down and lead good and healthy lifestyles.
  • Pokka Company achieved high profitability and revenue by sustaining double digit revenue growth in 2008 (Pokka Annual Report,2008)
  • Pokka group has successfully expanded overseas in more than 50 countries.

WEAKNESSES

  • Pokka should improve their products by getting a more unique and appealing packaging.
  • Pokka new products like Gabu Gabu and Planet Cola failed badly in local market after investing a lot to compete in the carbonated category.

OPPORTUNITIES

  • With high growth rates, Pokka is able to venture into new market like Thailand or Vietnam.
  • Food and Beverages is a growing industry in Asia pacific region.
  • Income level and standards of living is constantly increasing,

Threats

  • Facing fierce competitions from other Food and Beverages company like coca cola subsidiary Heaven & Earth and F&N seasons trying to gain larger piece of the pie.(Oishi),
  • Production and labour cost are increasing, meaning lower profit margin.
  • Government regulations when entering new market.

PESTLE Analysis

  1. Political

Thailand is one of the few countries still functioning under the monarchy system. Bhumibol Adulyadej, constitutional monarchy under the parliament democracy since 1932 which provides service for the residents as the head of state (Bunbongkarn 2014). There are 3 groups of government in Thailand, the executive, legislation and constitutional courts. Based on the Corruption Perception Index 2013, Thailand shows sign of corruption with an improved ranking of 102 among 175 and with a corruption index of 35 (Country economy 2013).

Thailand currently has 45 classes of control goods for importation. The importation of goods requires an application to be made to the Ministry of Commerce for an import license. 75% of the country’s GDP are from exports. Some of the main exports are rice, sugar, corn and other agriculture products are the country’s richest resources (International Business Publications 2013).

Thailand Labour Law stated that the minimum wages for employees is 300 Baht per day in every Thai province. Under the Labour Protection Act, termination of employees will result in severance pay. Temporary workers are to be entitled holidays; leave and severance pay the same as full time staffs (Business Information Centre 2009).

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