Chapter 4 EXTERNAL ANALYSIS This portion presents the different external factors that affect Quickly as one of the top in industry. The external forces divided into five categories such as Economic forces, Social, cultural, demographic & environmental forces, Political, Legal & Governmental forces, Technological forces, and Competitive forces. As stated by Fred David in his book, Strategic Management – An integrated approach, the purpose of external analysis is to develop the available opportunities that the company can take advantage and to avoid the threats that would affect the company. A. General Environment A.1. Economic Forces Concerning the economy status or standings such as demographic changes, fiscal, which determine the state of competitive environment in which a firm operates and by this forces affect the business’s marketing activities and the Philippines economic variables must be monitored, however, the growth of fast food industry in the Philippines is continuously booming. Key Economic Findings Source 1. Gross Domestic Product www.nscb.gov.ph/sna/2015/2nd2015/2015qpr rose to 5.6% in 2015 2.asp 2. Food and beverage imports Philippines National Statistics Office total $4.7 billion in 2007 3. Food manufacturing www.tradechakra.com remains dominant 4. Water is the
›
Economy
Philippines most https://qmhistoryoftea.wordpress.com
consumed beverage in the world, next is the tea
A.1.1. Gross Domestic Product
›
The Gross Domestic Product of the Philippines in the year 2015 is $330.259. The gross domestic product (GDP) is one of the primary indicators used to gauge the health of a country's economy. It represents the total dollar value of all goods and services produced over a specific time period; you can think of it as the size of the economy. The Philippines stated a 5.6% for the year growth rise compared to year 2014, putting the Philippines into the top position in Asia and more importantly in the food business.
A.1.2. Import-Export Food and beverage imports as per the Philippines National Statistics Office totaled $4.7 billion in 2007 from all sources and an estimated 60 percent of these are raw materials or ingredients used in food processing. Wheat, dairy products, processed potato products, and meat and poultry for further processing beef topped the list of imported raw ingredients.
A.1.3. Consumption Statistics Food manufacturing, which includes food and beverage processing, remains the Philippines most dominant primary industry. The industry is worth a gross added value of more than $2 billion and grew by 3.2 per cent in 2007. The Philippines Bureau of Food and Drugs Statistical Report of Establishments for 2004 lists a total number of 11601 food processing establishments nationwide. Also, water is the most consumed beverage in the world, next is the tea. Today, four in five of all consumer drinks tea. 2014 continued to grow for the tea industry, building on a trend that started more than two decades ago. It has sold a total wholesale value in the USA from less than two (2) billion dollars in 1990 to more than ten (10) billion dollars as of 2014.
Analysis of the Economic Forces Monitoring Other food manufacturers in the same line with Quickly such as Gongcha and Chatime posts a threat in lessening
Forecasting
the product distribution to consumers. The firm should observe the competitors and other firms
serving the same product in order to limit the threat. The industry may possibly face an increase in sales if it continues to produce. Potential growth in the product
Assessment
quality and technology can be achieved. Commodities and utilities are increasing steadily. O1. The food and beverage industry is improving in terms of technology and equipment in developing products O2. The rise of demand in water and tea will contribute to the increase of consumer demand T1. Other firms are slowly penetrating the same market. T2.
Increase
in
competition
for
customers;
ultimately
decreasing customer loyalty
A.2. Social, Cultural, Demographic, and Natural Environment Forces A social and cultural change has a big impact to the company offered products & services and the firm’s target market and their customers.
The
company offered must be flexible and to catch the customer’s taste and preferences because every country practices different types of belief system and their culture may vary.
Key Social, Cultural, Demographic And Source Natural Environmental Findings 1. Product Convenience and Quality Check foodinsight.com 2. Competitive Nature and business www.powerhomebiz.com expansion 3. Buying Habits of Filipinos
http://fitzvillafuerte.com/infographic-
the-spending-habits-offilipinos.html A.2.1. Product Convenience and Quality Check Consistent quality is a very important element for competitiveness in the market vulnerable to varying exter nal environment. Filipino nowadays are health conscious, now they are getting into health benefits of milk, tea and pearl which some studies show may help fight cancer. Quickly uses fresh, quality ingredients that have no preservatives added, so it’s really healthy. This is why Quickly allows the customer to mix anything they want for their personal drink. A.2.2. Business Expansion and Competitive Nature The same predicament is always pointed in the case the milk tea business. Milk Tea related business are being suspected as another case of fad. Over time, the taste and preferences of the people will change; leaving the milk tea business as another casualty. In order to cope with this threat, a few milk tea businesses are starting to engage in product and service differentiation. Chatime, Infinitea and Gong Cha are among the few who continuously seek ways to improve their business. However, Quickly considers business expansion as one of the key factors in the success of any business. The key is to increase and discover other environments and places to expand the business. In the milk tea industry, this trend is observed as with the case of Quickly’s competitors. Milk tea kiosks transform to a full-shop is situated from malls, schools, train stations and areas that generate consumer traffic. The key is environmental expansion in terms of location and variation. Location is different areas and regions of the Philippines and variation from kiosks to a full shop.
A.2.3. Buying Habits of Filipinos
As presented in the Philippine Financial Literacy Advocacy Report 2013 by Sun Life Philippines, Filipinos spend around 30% on food. Analysis of the Social, Cultural, Demographic and Natural Environment Forces Monitoring
The new trend in the food industry is the advanced technology which allows the customers to customize their
Forecasting
Assessment
products. International competition is high since the business is
providing international customers as well. The company will increase its sales if it strengthens the
symbiotic relationship with the customers. Quickly can establish strong dominance in the industry if it
caters to the customized needs of the customers. O1. Strengthen the customized needs of the customers. O2. Product convenience by delivering from house to house nationwide and free-shipping. T1. Other companies are starting to pick up on the product customization. T2. Competitors starting to catch up on selling solid food.
A.3. Political, Governmental and Legal Forces Political-legal forces include the outcomes of elections, legislation, and court judgments, as well as the decisions rendered by various commissions and agencies. The political sector of the environment presents actual and potential restriction on the way an organization operates. 1. Philippine Tax Laws 2. REPUBLIC ACT NO. 3720 3. Food, Drug and Cosmetic Act
http://www.bir.gov.ph/index.php/tax-information.html http://www.bir.gov.ph http://www.chanrobles.com
A.3.1. Philippine Tax Laws Value-Added Tax (RA 7716) is a form of sales tax. It is a tax on consumption levied on the sale, barter, exchange or lease of goods or properties and services in the Philippines and on importation of goods into the Philippines. It is an indirect tax, which may be shifted or passed on to the buyer, transferee or lessee of goods, properties or services.
A.3.2. Republic Act No. 3720 RA 3720 was enacted to ensure the safety and purity of foods, drugs and cosmetic made available to the public. The Bureau of Food and Drugs oversees the control of the manufacture and sale of processed foods, where the major concerns are adulteration and mislabelling of food products.
A.3.3. Food, Drug and Cosmetic Act It will help the companies and the consumer by ensuring the products that are being delivered to the businesses are safe and without additional chemical that can harm the customers. Consumer will be have an assurance that they can eat the product worry free and incase there is a bad effect on the consumer, an individual who experience health issues have a right to demand in the company or business.
Analysis of Political, Governmental and Legal Forces Monitoring Forecasting Assessment
O1.Quickly has the necessary resources and skills in order to further control the market, O2.Quickly may take advantage of the said laws by its’ very nature of providing healthy and organic ingredients T1. Strict compliance with the government requirement and new city ordinances by local government units may halt operations. T2. Cost of raw materials and new laws may lessen the profit
and sales.
A4. Technological Forces As a food distributor, Quickly uses new technology to improve its service and production processes. Technological advancement this century have made businesses more efficient and business people more responsive to customers. Also, since Social media is a technological breakthrough that expanded its function. More than a personal tool, Social Media has been utilized by Quickly. What started as a means for communication is later used by companies for marketing and consumer analytics. Both complaints and appreciations are facilitated by social media. For Marketing, companies use Social Media to advertise and promote interaction to customers. As for consumer analytics, social media has provided an opportunity for companies to hear feedback and perception from consumers.
Key
Technological Source
Forces Findings 1.Use of Social marketingland.com/socialMedia
media-advertising-set-
2. Equipments
explode-next-3-years https://www.crmswitch.com/ businesstechnology/importantadvancement
A.4.1 Use of Social Media Internet and Mobile Technology is currently growing so rapidly in the market where almost all of the people nowadays will get contact with it. Quickly could use this advantage to benefit them by using technology to promote their products over those advanced technology. Consumer could get any information from their site. Quickly could market different product according to the customers demand in different country.
A.4.2 Technological advancements/equipments With this advancement in the business, Quickly may now serve consumers in a more efficient way, and may serve multiple customers in a more effective way.
Analysis of the Technology Forces Monitoring From poor production equipments to a highly advance technologies, Quickly provides a great standard quality in the distibution.
Forecasting
Foreign established company could be a great threat to some local consumers. Quickly could end up in slow progress if they continue to not to extend to different varieties in servicing and advertising. O1. Quickly have the appropriate technology, manpower and
Assessment
skills to be present in the industry. O2. Advertising through the use of social media T1. Established Loyalty of other customers T2. Rapid changing in the market trend A5. Competitive Forces This force discusses the understanding of competitors. An important part of an external audit is identifying rival firms and determining their strengths, weaknesses, capabilities, opportunities, threats, objectives, and strategies. Collecting and evaluating information on competitors is essential for successful strategy formulation.
Key Competitive Findings Source 1. Milktea Business that offers high standard http://gongcha.com.ph teas. It is also known as the “Best tea contributes
to
the
Emperor
from
all
possessions of China in the ancient time 2. Milktea Business that provides stylish and
http://www.chatime.com/about-us/our-
health-conscious
company/
customers
with
various
selections of freshly brewed tea infused with different natural flavours
3. One of the largest tapioca milk tea http://www.quickly.com.ph franchises in the world, with over 2000
locations in Africa, Asia, Europe and North America. Founded by Nancy Yang in Taiwan. A.5.1 Gongcha Gong Cha “The best tea contributes to the Emperor from all possessions of China in the ancient time.” Gong Cha was first launched in Kaohsiung, Taiwan in 2006. There are over 100 outlets worldwide spreading from Taiwan to Hong Kong, Singapore, Macau, and China. Gong Cha sets the highest standard when choosing materials, and takes the most severe attitude in quality control in order to provide the best tea with the most considerate services to the customers. We insist on choosing materials that are healthy to people, and use Taiwanese fresh tea to make every beverage. In order to control quality severely, even though the liquid tea doesn’t go bad, we throw it away every 4 hours. Every beverage is tailored for the customers and is made by well trained people. You can choose how sweet your beverage would be.
A.5.2 Chatime Chatime provides stylish and health-conscious customers with various selections of freshly brewed tea infused with different natural flavors. Through implementing the idea of “High Tech Tea Making” procedure, we use simple operation steps to ensure highquality drinks for every customer. In order to make Chatime a global brand, Chatime modernizes the traditional tea culture by producing high-tech tea machines to make consistent-quality fresh teas. Given the different temperature, humidity, and barometric pressure around the world, Chatime formulizes the tea making standard procedures in “precise timing”, “precise quality” and “precise temperature” to guarantee the best quality drinks with consistency for customers worldwide. Furthermore, worldwide certifications have been obtained to ensure the quality and safety of our products. To appeal to the taste buds of customers in every region, a dedicated professional research team develops innovative products to meet the local
tastes and cultures. With its commitment and devotion to expand internationally, Chatime is dedicated to introduce Taiwanese authentic food to worldwide customers by becoming a “Global Brand with Local Flavor”
A.5.3 Critical Success Factors Critical Success Factor or CSF 1.Product Quality
Definition Product itself is the most important element in the business. Quality in a product or service is not what the supplier puts in. It is what the customer gets out and is willing to pay for.
2.Added products features
In this factor, each tea supplier design and provide added products features in order to make
them
more
distinctive
from
other
competitors. Such as, proving a more powerful or new kind of ingredient or taste.
3. Price competitiveness
Competitive pricing is used by businesses selling similar products, since services can vary from business to business while the attributes of a product remain similar.
4. Variety of products
In this industry, variety of products is a new set of competition and marketing strategy because what you offer more effective and exciting are what consumers consider more.
5. Management qualification and experience
Loyal customers demand good management and inspiring experience.
6. Innovation in products and services
Keeping innovation
a
track in
this
of
improvements
industry
is
a
and highly
recommended strategy since modernization and development keep changing.
MAP
Competitor
GongCha
Description and Quantity of Product Offering
Number of Branches
Milktea Business that 46 offers high standard teas. It is also known as the “Best tea contributes to the Emperor from all possessions of China in the ancient time.”
Price Range
Years of Existence
Php. 85Php. 135
5 Years
Php.75Php.110
5 Years
Quantity of Product Offering: 7 Chatime
Milktea Business that 30 provides stylish and health-conscious customers with various selections of freshly brewed tea infused with different natural flavors.
Quantity of Product Offering: 9 Quickly
One of the largest tapioca milk tea 53 franchises in the world, with over 2000 locations in Africa, Asia, Europe and North America. Founded by Nancy
Php.35Php.85
14 Years
Yang in Taiwan.
Quantity of Offering: 7
Product
Analysis of the Competitive Forces Monitoring Quickly, which is the chosen company, tends to succeed in experience and low cost advantage compare to those competitors. However it lacks added variety product which is more strategic in such industry. Forecasting
Competitor 2 - Chatime enables to extend with valueadded technical services.
GongCha enters the international market after it acquired a reputation in China for its techniques in the production of the tea.
Regardless that those competitors grabbed a huge step to the industry, Quickly likely to have a one step
Assessment
higher advancements O1. Having 14 years of existence Quickly grows in the global market beyond that of Taiwan since it started to operate a business in the Philippines in 2001 in order to spread its culture and value into the world. O2. Consumers’ desire to secure cost competitiveness and stable distribution channels will be accelerated. T1. Gongcha, as a competitor, has more branches than of Quickly’s T2. With a drastic change in the market trend, it continues to threaten the industry,
B. Industry Analysis B.1. Porters Analysis Figure : Key Industry Findings based on the Five Forces of Competition
Potential new entrants to the market – [HIGH]
Suppliers of Key Resources – [HIGH]
Industry Competitors – MEDIUM]
Customers - – [HIGH]
Substitute products from organization in other industries [LOW]
B.1.1. Rivalry among Competing Firms The rivalry between the major players in the milk tea business is extremely high because of the price and product comparability of the competing companies. Also there is a strong barrier setup by the three major players in the market, because of the name that has been created by the three major companies. This may give difficulty for a new rival to enter into the market.
B.1.2. Potential Entry of New Competitors The possibility of new entrants in the market might be high. Due to the upscale trend of franchising, more businessmen are interested in owning their own franchise. Also there is a lot of business that caters the same product as Quickly but for some advantages created by the major players in the market, new entrants would have to be unique to be able to gain an absolute competitive advantage within the industry.
B.1.3. Potential Development of Substitute Quickly is known for their quick service and organic ingredients. Competitors of the industry also try to compete with similar products; therefore, leading to price wars.
Overall, the industry has tried various product differentiations in order to accumulate greater market share, but most consumers are drawn to the classics for which the establishment is known. However, growing concern to achieve consumer satisfaction, as well as other competitors, is to make an extensive system changes, in order to conform to a more concerned market. Quickly is focused on doing more and more to compete with customer satisfaction unlike other competitors.
B.1.4. Bargaining Power of Suppliers Suppliers bargaining power in this industry is strong. Because the raw materials used to produce the product comes from different countries. For example the Tapioca or the black pearls imports from Taiwan while the cups and straws are from China. It becomes strong because they have the capacity to dictate the price depending on the demand of their products.
B.1.5. Bargaining Power of Consumers The bargaining power of the consumer is relatively high because they dictate the demand of the products. The competition in the market makes consumer patronize the one that they can afford. It affects the selling prices of the product itself. And since customers nowadays become more demanding in terms of quality or satisfaction that they are getting in buying a certain product. So if the product does not satisfy the preference of the consumer the tendency is that they can easily favor other product.
Analysis of the Industry under Porters Analysis Monitoring Quickly has expanded its business to other countries in Asia, inclu
beyond Taiwanese market, and grown to a global business. Based o
expanding its global projects further and be . Among consumers, th demand for healthy foods rises with their income increasing.
Forecasting
Competition with global giants due to overseas market opening is
Assessment
wants to be a stepping stone for the local industry to have global com O1. Chance to enter the global market
O2. Tea plays a leading role in the global food industry and second o to consumed in the world, next to water.
O3. Market development, internationally, including a big jump in size the demand for feed in all of Asia. T1. There new market entrants. T2. Major barriers in which a firm faces in the industry.
T3. Competition with global giants due to overseas market opening is
B.2. Market Analysis Market Analysis studies the economic factors, political instabilities, technological influence or even social changes that can give opportunities that can be seized or threats that has to be suppressed or watchful for. Water is the most consumed beverage in the world, next is the tea. Today, four in five of all consumer drinks tea. 2014 continued to grow for the tea industry, building on a trend that started more than two decades ago. It has sold a total wholesale value in the USA from less than two (2) billion dollars in 1990 to more than ten (10) billion dollars as of 2014. Here in the Philippines, it is basically a necessity. In 2013, Philippine Financial Literacy Advocacy Report by Sun Life Philippines, it is reported that Filipinos spend around 30% on food. This is according to the market trend of how Filipinos spend their money. To meet the need of these customers, Quickly has a standard guaranteeing food safety at a world class level.
B.2.1. What are the main features of the market? Nowadays, Philippines milk tea shops are the main business for those looking to make money by serving this beverage to others; and they mean big business nowadays. There are a lot of tea shops around the country at the moment, yet demand does not show any signs of abating. In fact, even the smaller shops can boast of raking in the profits for around 200-300 sold drinks in a single day, according to PHNI, a popular supplier for bubble tea related products in the Philippines.
The stability of the demand for the product is really what businessmen consider when putting up a new enterprise, though, and one cannot complain about the demand for milk tea in that aspect. Its endurance despite the many doomsayers predicting its imminent downfall as a fad can be explained by comparing its clientele to that of cafes. Part of the reason coffee shops have succeeded all around the world is that they have built for themselves a loyal clientele who come to the stores every day and make purchase of a product a daily habit, whether to obtain a shot of caffeine to help them with work or simply as a routine indulgence. The milk tea industry is concentrated with the three major players, Wealthimore Success Co., Ltd., Inc. (Quickly), Gong Cha and Chatime they have a small market share in the industry. B.2.2. Who are the customers? The milk tea business target customers are the people who go to the mall, health buffs and students. Due to the increasing customer health awareness, its aim is to cater different kinds of people as a substitute product for soda. The target market of milk tea businesses ranges from upper class B to upper class C. These are the people who regularly visit the malls and enjoy a variety of beverages. These people also have the capacity to buy drinks that are a bit high-priced.
B.2.3. What are their buying habits? Quickly’s existing customers have good routine buying patterns. The same customers come at the same time of the week or every other week. Most of Quickly’s customers are students, on-the-go people and mall-goers. Solid customer relationships, being available, to provide quality products at a good price all add to a successful bottom line.
The corporation strongly believe that by offering delivery services, they will gain a substantial number of new customers, both through the advantages of the new service, and with the new advertising. B.2.4. What are the products? Quickly Philippines’ offers unique and unlimited variants of Tapioca Bubble Tea, Smoothies, Juice, and Frozen Yogurt. It is unique since the customer can customize their drinks according to the satisfactory taste.
PRODUCT LIST: Taro Bestseller
-
Choco Loco Super
-
Super Taro Ice
-
Taro Taro
-
Taro Ice Special
-
Super Taro Ice
Choco Chill
-
Super Choco Chill
-
Choco Choco
-
Choco Chill Special
-
Choco Delight
Milk Tea
-
Red Milk Tea
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Taro Milk Tea
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Super Taro Milk Tea
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Super Milk Tea
-
Super Choco Milk Tea
Coffee Ice
-
Coffee 1 (Coffee Ice + Sago)
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Coffee 2 (Coffee Ice + Choco Pudding)
-
Coffee 3 (Coffee Ice + Sago + Choco Pudding)
Blended Ice
-
Strawberry Ice
-
Lychee Ice
-
Green Apple Ice
-
Power of Three
Shake Fruits
-
Blueberry Ice
-
Lychee Ice
-
Mango Ice
-
Green Apple Ice
-
Strawberry Ice
Market Analysis Monitoring
Forecasting
Assessment
Severe competition nationally and globally
High demand for specialty nutritional solutions
Stabilized demand
Tea is the second most consumed beverage in the world The unrelenting pressure on prices
Continuous and rapid change in the market trend
O1. The growing industry gives a continuous chance for the entity know how to address the needs of the consumers O2. Rising demand for healthy ingredients
O3. Stabilized demand and rising prices will stimulate revenue growth T1. Rising competition is restraining the company’s growth of the ma T2. Reduction in pricing due to severe competition locally
C. Summary of External Analysis
1. Summary of Porters Five Forces 2. Profile of Competitors GongCha and Chatime Philippines are one of the renowned competitors of Quickly. The following corporations offer up similar ingredient formulation expertise, products, and convenient access for the consumers and health-expertise. Likewise, focus is customer value and continues to serve with a commitment to support fast and efficient and low-cost nutrition for customers. 3. List of All Opportunities and Threats Identified from the General Environment and Industry Analysis Category Opportunity Factor A1. Economic O1. The food and beverage industry is improving in terms of Forces
technology and equipment in developing products O2. The rise of demand in water and tea will contribute to
A2.
increase of demand from consumers Social, O1. Strengthen the customized needs of the customers.
Cultural,
O2. Product convenience by delivering from house to house
Demographic and nationwide and free-shipping. Natural Environment Forces O1.Quickly has the necessary resources and skills in order to A3.
Political, further control the market,
Governmental and O2.Quickly may take advantage of the said laws by its’ very Legal Forces nature of providing healthy and organic ingredients A4. Operations O1. Quickly have the appropriate technology, manpower and Management Trend Technological
skills to be present in the industry. and O2. Advertising through the use of social media.
Forces A5. Competitive O1. Having 14 years of existence Quickly grows in the global Forces
market beyond that of Taiwan since it started to operate a business in the Philippines in 2001 in order to spread its culture and value into the world. O2. Consumers’ desire to secure cost competitiveness and stable distribution channels will be accelerated. O1. Chance to enter the global market
B1.
Porters
Analysis
O2. Tea plays a leading role in the global food industry and second of the largest and most important component to consumed in the world, next to water. O3. Market development, internationally, including a big jump in size for the food and beverage sector, boosting the demand
B2.
for feed in all of Asia. Market O1. The growing industry gives a continuous chance for the
Analysis
entity to chase superior technical expertise and know how to address the needs of the consumers O2. Rising demand for healthy ingredients O3. Stabilized demand and rising prices will stimulate revenue growth.
Category Threat Factor A1. Economic T1. Other firms are slowly penetrating the same market. Forces A2.
T2. Increase in competition for customers; ultimately decrease in loyalty. Social, T1. Other companies are starting to pick up on the product
Cultural,
customization.
Demographic and Natural Environment Forces
T2. Competitors starting to catch up on selling food.
A3.
Political, T1. Strict compliance with the government requirement and
Governmental and new city ordinances by local government units may halt Legal Forces
operations. T2. Cost of raw materials and new laws may lessen the profit and sales.
A4.
Operations T1. Established Loyalty of other customers
Management Trend
T2. Rapid changing in the market trend and
Technological Forces T1. Gongcha, as a competitor, has more branches than of A5.
Competitive Quickly’s
Forces B1.
T2. With a drastic change in the market trend, it continues to threaten the industry Porters T1. Multiple market entrants.
Analysis
T2. Major barriers in which a firm faces in the industry. T3. Competition with global giants due to overseas market opening is intensifying
B2.
Market T1. Rising competition is restraining the company’s growth of
Analysis
the market. T2. Reduction in pricing due to severe competition locally
4. Summary of Key Opportunities and Threats # 1
2
Opportunities Basis The food and beverage industry is Economic improving in terms of technology Forces and equipment in developing products
Dimension Industry
The rise of demand in tea will Economic
Industry
Rate 6.00
Positioning
4.00
3
contribute to increase of demand Forces
Positioning
from consumers Quickly have the
Stability
appropriate Technology
technology, manpower and skills to
-3
Positioning
be present in the industry. 4
Product convenience by delivering from
Social
house to house nationwide and free-
Stability
-2
Positioning
shipping.
5
Quickly has the necessary resources and
Political Forces
Industry
-1
Strengthen the customized needs of the customers.
Social
Positioning Industry
5.00
Advertising through the use of social
Technological
Positioning Stability
-5
media.
Forces Political
Positioning Stability
-6
skills in order to further control the market
6 7 8
Quickly may take advantage of the said laws by its’ very nature of providing healthy
Positioning
and organic ingredients
# 1
Threats Basis Other firms are slowly penetrating Economic
Dimension Industry
Rate 4.00
2
the same market. Increase in competition
Positioning Stability
-2
3
Forces for Economic
customers resulting to decrease of Forces
Positioning
customer loyalty Strict compliance
Industry
with
the Social
government requirement and new
4.00
Positioning
city ordinances by local government 4
5
units may halt operations. Other companies are starting to Social
Stability
pick up on the customization of
Positioning
feeds and product customization. Strict compliance with the Political Forces
Stability
government requirement and new
Positioning
city ordinances by local government
-4
-5
units may halt operations. 6
Cost of raw materials and new laws Political Forces
Stability
-3
7
may lessen the profit and sales. Established Loyalty of other Technological
Positioning Industry
5.00
8
customers Rapid change in the market trend
Forces Technological
Positioning Industry
5.00
Forces
Positioning
