Question

Conduct a PESTLE study of jaggery industry in India and also a 6 force model study of jaggery industry in India.

both the 6 force model and pestle should be done separately under separate headings.

1) pestle should contain political, economic, social, law, technical and environmental factors affecting or contributing to the jaggery industry. all the factors should be under separate headings.

2) 6 force model should contain Existing rivals, Customer power, Supplier power, Threats of substitutes and new entrants and lastly complimentary powers affecting or contributing to the jaggery industry all under separate headings.

Answer 1

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1. PESTLE study of jaggery industry in India is as follows:

1. Political environment: jaggery industry works under political influence, regarding the maximum amount of jaggery they can produce and political factor plays a key role in helping the company out which somewhere leads to the development of the company.

2. Economic environment: jaggery industry contributes around 0.7% of India's total GDP growth. Moreover, history also provides money in the form of taxes. And if we talk about the current scenario, then it contributes to the country's GDP and tries there best to improve the economic conditions of the country.

3. Social environment: jaggery industry has provided a significant amount of employment to people living in rural areas of the country and if they contribute more to society people then it will help them to gain sympathy and trust in society people.

4. Technological factors: India is trying to upgrade its technology regarding the production of jaggery in order to increase productivity while saving energy and other resources as we all know technology plays an important role in the development and having the advanced level of technology will certainly lead to the development of the company.

5. Legal environment: the industry works under a strict legal environment regarding taxes and how much a particular firm can produce. It is just to balance the demand and supply side of the product.

6. Environmental factor: instead of crude oil, the company can use ethanol as it emits less carbon dioxide which will not pollute the environment and by which you can contribute to saving our environment and with the help of this you can also convey this important message to the people.

2. Six force model for jaggery industry:

1. Existing rivals: jaggery industry has brown sugar makers or artificial sugar makers as existing rivals which makes the competition tough and that company will win who will stay till the end and take a competitive advantage over there competitors.

2. Customer power: customer service no bargaining power because there are huge amounts of government regulations that provide a huge level of satisfaction to the customers and using this power is there bargaining.

3. Supplier power: it is regulated by the government and where to locate the sugarcane Mills. Thus, nobody can do anything as this task is undertaken by the government itself and no one else is allowed to do this other than the government itself.

4. Threats of substitute: there is a decreasing trend of jaggery and the increasing trend of using white sugar instead which will lead to the shifting of the customers and losing the competitive advantage over there competitors in the market.

5. New entrants: The government put restrictions on setting a jaggery industry within an area of 15 km. but the government used to provide incentives to enter into the market but have withdrawn now.

6.Complementary powers: Competition within the industry is very high, and the government interferes a lot which leads to various disputes within the companies. The work of the government here is to settle the things down and try to help both parties.