MOTHER DAIRY: CRAFTING A NATIONAL FOOTPRINT PESTEL ANALYSIS POLITIC AL FACTORS 1. POLITICAL •
•
•
MOTHER DAIRY HAS GOVERNMENT SUPPORT AND IS A SUBSIDIARY OF NDDB BUT THIS HAS MADE IT IMPOSSIBLE FOR THEM TO MAKE AGGRESSIVE AND TIME-BOUND DECISIONS ON ITS OWN BEHALF CAUSING IT’S GROWTH AT SLOW PACE. Governen! o" In#$% &ro'()%!e# % *e! o" (%+* %n# re)'(%!$on* "or !,e #%$r &roe**$n) $n#'*!r $n or#er !o en*'re *%"e!/ ,)$ene %n# *erv$e *!%n#%r# GoI ,%* #ere)'(%!e# !,$* *e!or %n# !,ere %re no ($ene re0'$re# %n# %((o+%ne o" 1223 FDI
2. ECONOMIC ECONO MIC FACTORS T,ere $* %n $nre%*e $nre%*e $n 'r4%n &o&'(%!$on %n# !,e #e%n# o" $(5 $* $nre%*$n) %! % ,$),er r%!e. In#$%n #%$r &ro#'!* %r5e! $* e6&e!e# !o )ro+ %! 73 CAGR/ %nn'%( !'rnover +%* ($5e( !o 4e INR 722 4$(($on. NDP 4e$n) $&(een!e# 4 NDDB +$!, % 4'#)e! o" INR 1.89 4$(($on +$!, %n o4:e!$ve o" #o'4($n) !,e o'n!r’* $(5 &ro#'!$on 4 ;2;2 . 3. SOCIAL FACTORS Inre%*$n) o'n) &o&'(%!$on o" In#$% %n# 4'r)eon$n) $##(e (%**. D'e !o re($)$o'* %* +e(( %* '(!'r%( re%*on*/ %:or &o&'(%!$on $* (%!o ve)e!%r$%n. Peo&(e %re (oo5$n) "or onven$ene %n# ,e%(!, +,$, $n !'rn $nre%*e on*'&!$on o" &%5%)e )oo#* #%$r &ro#'!* %n# ,e%(!, )oo#* 4. TECHNOLOGICAL FACTORS U*e o" Ven#$n) %,$ne-ne!+or5 !o *e(( (oo*e $(5. M%n'"%!'r$n) &roe**e* o" Mo!,er D%$r %re 4en,%r5e# %)%$n*! 4e*!-$n- (%** S!%n#%r#* +$!, % v$e+ !o+%r#* on!$n'%( $&roveen! "or $n"r%*!r'!'re %n# **!e re0'$reen!*. T,ere %re o#ern "%$($!$e* +,$, $n('#e <(!r%!$on/ (%r$<%!$on/ &%*!e'r$=%!$on/ ,$(($n)/ <(($n)/ &%5$n)/ %n# *!or%)e o" $(5. $(5 . 5. ENVIRONMENTAL ENVIR ONMENTAL FACTORS ACTOR S •
•
• •
•
• •
•
•
•
T,e $n!ro#'!$on o" To5en #$*!r$4'!$on **!e **!e !,e !on* o" &(%*!$ en!er$n) !,e De(,$ %r5e! ever #%. #%. En*'r$n) !,e &(%n!* !o &ro#'e $n$%( %r4on "oo!&r$n! " oo!&r$n! %(on) +$!, e?e!$ve *'&&( ,%$n %n%)een! !,ere4 re#'$n) +%*!%)e.
6. LEGAL
FACTORS
•
MMPO en"ore* %n# re)'(%!e# !,e *'&&( o" ($0'$# $(5 o" #e*$re# 0'%n!$! $n !,e In!ere*! o" )ener%( &'4($ %n# re)'(%!e# !,e &ro#'!$on %n# #$*!r$4'!$on. BIS Or#er@- I! For'(%!e* *!%n#%r#* $n !,e &roe**e# "oo#*. BIS %n o4!%$n !,e ISI %r5 !,%! %n 4e e6,$4$!e# on &ro#'! &%5%)e* .
MOTHER DAIRY: CRAFTING A NATIONAL FOOTPRINT PORTER-5 FORCES 1. THREAT OF NEW ENTRANTS •
•
MOTHER DAIRY ENOYS A GREAT HOLD OVER ORGANIED MILK PRODUCERS AND THEIR SUPPLY.SO NEW ENTRANTS WILL FIND IT DIFFICULT TO OVERPOWER THEM. ONLY AMUL HAS BEEN ABLE TO DISTORT THEIR MARKET SHARE BEING A NATIONAL BRAND
2. BARGAINING POWER OF BUYERS •
HUGE YOUNG AND LACTO VEGETARIAN POPULATION A HUGE DEMAND FOR MILK AND MILK PRODUCTS. MAOR PLAYERS AND GOVERNMENT HAVING STRONG HOLD OVER ORGANIED MILK PRODUCERS AND SUPPLIERS SO NO SCOPE OF PRICE DIFFRENTIATION.SO LESSER BARGAINING POWER
3. BARGAINING POWER OF SUPPLIERS •
•
MOTHER DAIRY PROCURES MILK FROM COOPERATIVE SOCIETIES AND ITSELF IS REGULATED BY GOVERNMENT.THUS GIVING BARGAINING POWER TO SUPPLIERS BEING A STATE COOPERATIVES 9 TH OF THE CUSTOMER SALES PRICE GOES TO MILK PRODUCERMOTHER DAIRY
4. THREAT OF SUBSTITUTES •
IN INDIA MAORITY BEING A LACTO-VEGETARIAN SUBSTITUTE OF MILK AND MILK PRODUCTS IS NOT THERE
5. COMPETITIVE RIVALRY •
DUE TO MANY GOVERNMENT INITIATIVES THE POSSIBILITY OF NEW ENTRANTS IS UITE HIGH THE CHALLENGE OF STRONG AND EFFICIENT SUPPLY CHAIN FROM CATTLE OWNERS TO CONSUMERS MILK BEING PERISHABLE IN NATURE/IT IS VERY ESSENTIAL TO BUILD THIS
ROBUST CHANNEL AND HENCE SEASONED PLAYERS HAVE STRONGER ADVANTAGE.