Question

In: Economics

Perform a broad PESTEL analysis on the bottled water industry from the 1996-2003 era

Perform a broad PESTEL analysis on the bottled water industry from the 1996-2003 era

Solutions

Expert Solution

The term PESTEL (Political Economical Sociable Technology Environment Legal ) Analysis refers to the global marketing conditions on which many MNC's and big companies depend. It is basically a tool for manufacturers to predict the market so that they can armour themselves in advance for any upcoming adverse situation.

Thus, all the aspects of the external marketing condition which impacts an organisation's strategy, decision-making and management for evaluating a particular product, like in this case of a bottled water industry are:-

i) Political - depended on the government's policies and intervensions in the process of production. If found that the particular bottled water industry was not following the guidelines and regulations while manufacturing, a heavy fine was imposed.

ii) Economic - exchange rates, taxes and tarrifs imposed on trades (import and export), inflation-deflation rates, are all the different factors necessary in the analysis as to regulate and keep a control on prices of the bottled water

iii) Social - varying traditional and cultural differences from nation to nation made people react on the consumption of bottled water both ways. As countries where clean drinking water was available for free of cost, bottled water was least considered by the population as it is regarded unhealthy too.

iv) Technical - discovery and invention of modern methods and tools of production like recycleable and disposable water bottles made the market of bottled water flourish more. While the new marketting and advertising medium also brought a huge change in its demand.

v) Environmental - taking into account on controlling the GHG (greenhouse gas) emmissions by the bottled water industries during the process of production and the pollution levels caused by the plastic bottles which were not disposed by properly.

vi) Legal - the laws of carrying out a bottled water business with certain rules and regulations varied from country to country. The regulation on the amount of chemicals to be used in the water so as to preserve it for long. The directives set for the quality of plastic used in the making of bottles had to be recycleable and disposable.

The bottled water industry faced the PESTEL analysis by different organisations of different countries according to their PESTEL conditions as well. It included the study at macro level, regarding the production and consumption of packaged water world-wide and the recycleable bottles used in the process, failing to which the industry was made to shut its business and was kicked out of the market. The analysis also brought into light the open market opportunity across the world, for the bottled water industry as per its demand grew with time.


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