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    Mother Dairy: Creating A National Footprint: POLITICAL Factors

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    AkankshaAhuja
    The document analyzes various political, economic, social, technological, environmental, and legal factors (PESTEL) that impact Mother Dairy's operations in India. It notes that deregulation of the dairy sector has led to increased competition. Rising costs and Amul's aggressive expansion have reduced Mother Dairy's market share. However, India's growing population and urbanization are increasing demand for packaged dairy products. New technologies and strict quality standards are also important for success in the sector.

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    Mother Dairy: Creating A National Footprint: POLITICAL Factors

    Uploaded by

    AkankshaAhuja
    176 views2 pages
    The document analyzes various political, economic, social, technological, environmental, and legal factors (PESTEL) that impact Mother Dairy's operations in India. It notes that deregulation of the dairy sector has led to increased competition. Rising costs and Amul's aggressive expansion have reduced Mother Dairy's market share. However, India's growing population and urbanization are increasing demand for packaged dairy products. New technologies and strict quality standards are also important for success in the sector.

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    Ft173008 Pestel

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    The document analyzes various political, economic, social, technological, environmental, and legal factors (PESTEL) that impact Mother Dairy's operations in India. It notes that deregulation of the dairy sector has led to increased competition. Rising costs and Amul's aggressive expansion have reduced Mother Dairy's market share. However, India's growing population and urbanization are increasing demand for packaged dairy products. New technologies and strict quality standards are also important for success in the sector.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    176 views2 pages

    Mother Dairy: Creating A National Footprint: POLITICAL Factors

    Uploaded by

    AkankshaAhuja
    The document analyzes various political, economic, social, technological, environmental, and legal factors (PESTEL) that impact Mother Dairy's operations in India. It notes that deregulation of the dairy sector has led to increased competition. Rising costs and Amul's aggressive expansion have reduced Mother Dairy's market share. However, India's growing population and urbanization are increasing demand for packaged dairy products. New technologies and strict quality standards are also important for success in the sector.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Akanksha Ahuja

    FT173008

    Mother Dairy: Creating a national footprint


    P.E.S.T.E.L Analysis
    POLITICAL Factors

    De-regularisation of dairy sector allowing for easy entry of multiple


    local and national players
    100% FDI in the sector gives edge to international players with vast
    experience in Supply Chain Management
    Pradeshik Co-operative Dairy Fed. (PCDF) of UP, associated as supplier
    was government supported entity.
    MMPO-1992: To further enhance the dairy industry in India

    ECONOMIC Factors

    With the rise in production cost by 68% it will be difficult to maintain


    margins in a competitive new market
    Aggressive expansion by Amul (especially 46% share in package milk
    segment) in Delhi has reduced the market share in the stronghold,
    affecting revenue
    Availability of labour further deepen the problem
    The Indian milk suppliers were scattered. Hence, consolidation was a
    crucial factor
    Indias projected 1.4 billion population by 2025 representing one of the
    youngest population in the world

    SOCIAL Factors

    Milk occupied a strong interwoven relationship with Indian Cultural


    values in terms of rituals, vegetarianism and so on.
    Indian Consumers trust in unadulterated and superior quality of private
    brands
    Prevalence of lacto-vegetation created more dependency on milk and
    dairy products
    With rapid urbanization people want more value added products,
    growth has to factor in this segment as well
    Emergence of various co-operatives among Indias suppliers of raw
    milk provided some degree of bargaining power to the suppliers

    TECHNOLOGICAL Factors

    Robustly established supply chain management became crucial to be


    successful in dairy sector because of highly perishable nature of milk
    products
    Milk Trucks were sent to rural areas in order to overcome the adulteration
    problem
    International players will use their expertise to cut costs and maximize
    profits due to tried and tested technologies

    ENVIRONMENTAL Factors

    Increasing Urbanization and increasing diseases like diabetes, high


    cholesterol caused a shift towards healthy dietaries

    Akanksha Ahuja
    FT173008

    Increase in urbanization and surging income levels increased the demand


    for package dairy products that saved time

    LEGAL Factors

    The governments support and close relationship provided credibility.


    Perhaps, it made it impossible to make aggressive and time-bound
    decisions
    Standards set by BIS need to followed more strictly when launching
    new products
    No cap on international investments coupled with the focus of GOI to
    double the milk production by 2020 will lead to many new entries.
    Adherence to the colour coding set by the government when designing
    new advertisement campaigns

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