Environmental analysis of BISLERI pvt. ltd.

“Environmental Analysis”

The Environmental analysis is divided into two parts:

1. Micro Environment: which includes internal environment and micro environment.
2. Macro Environment

For better understanding of Environmental analysis, I have taken a company named as “Bisleri”.

The analysis of Internal factors, Micro environmental factors and macro environmental factors is as follows:

Micro Environment:

Internal refers to SWOT analysis of the company and there are some other micro factors also. SWOT analysis of BISLERI is as follows:

1. Strength:

Bisleri is a well-known mineral water company. They provide their product to many countries. Their strength is classified as:

• Quality: Their biggest strength is the quality of their product. They are more focused on providing the good quality water to the people and serve them with a healthy water.
• Competitors: As the biggest player in this industry Bisleri have a very few competitors. The competitors which may have a big impact is Kinley and Aquafina.
• Market Shares: The market share of Bisleri is very high in his sector. According to some of the report Bisleri has almost 24.62%.
• Innovation: They are very innovative as compared to their competitors as they are the one who come up with an idea of serving bottles in a PET bottles from Glass bottles.

2. Weakness:

As having a “Strength” they also have some weakness. They are as follows:

• Distribution Method: As having a biggest share does not mean having a good distribution method. They have a good distribution method but the cost of the distribution is very high. Their Distribution method is very Expensive.
• Reuse of bottles: As providing a water in a bottle it is intended to crush the bottle after use because it will be harmful for the environment. The people does not understand this and they use this bottle again by filling up water in a bottle.
• Unmet Market Potential: As there is more demand in the market but their production is very less due to some of the government policies. If the production is increase then they will be able to fulfill the market demand.

3. Opportunities:

There are many opportunities that are available to bisleri in the market:

• Expansion: Bisleri can expand in different locations as there are many potential market so as to increase their revenue and the profits.
• Expected Growth Rate: Packaged water grew at 23-25% compared to last year which is almost double the growth rate of carbonated drinks. This shows there is still huge potential in the country.
• Premium Segment:It can launch a premium bottled water for 5-star hotels and high-end customers. It can diversify its target audience and cash in on this segment as well.
• Market demand and supply: The more they produce the more they sale. If the demand is there and their supply is less then retailer may shift from bisleri to another brand.

4. Threats:

There are many threats that they are having:

• Competition: Indian markets is getting crowded in this product category. Giants like Coca-Cola, Pepsi and Tata Global Beverages have launched packaged mineral water in the country. This can affect the market share of the company and thereby cut its profits and revenues.
• New big Players eyeing the market:Apart from this there are several other giants that are eyeing the lucrative mineral water industry of India. Nestle, Tata, HUL and DS group are all eyeing this market. This would increase the competition to the next level.
• Changing Government Policies: For every drop of water packaged some needs to be given back to the earth and create sustainability in the environment. Bisleri would need to change their production style and suit the government norms. This would increase their cost of production and thereby make their products costlier or drive their profits down.
• RO and Filters:The increase in the sales of water filter and ROs in the country is also an issue to the sales of Bisleri. People prefer their home water when travelling then to buy a bottled water from a retailer. And as the rates of such filters are falling the threat is increasing.

Other Micro Environmental Factors:

1. Customers:

They are known as God of the business. They are the one who is going to buy your products and make your product a success. Their taste and preferences for the product changes and that change affect the organization.

2. Investors:

The investors who is investing money in your company wants a business to run according to them. This will make a bad impact on the organization as there are experts available to take decisions rather than taking from investors.

3. Suppliers:

Changes in the policies of the suppliers affect directly to the organization. Raw materials and other materials are supply by the suppliers and if they increase or decrease the price, then this will lead to increase and decrease in the production cost.

This all are about the Micro environmental and internal factors which affect the organization and a marketer need to keep this all the factors in mind while making a marketing strategy.

Now let’s move towards the Macro Environmental Factors and it’s effect on an Organization.

Macro Environmental Factors

The macro environmental factors which is famously known as PESTEL analysis is as follows:

1. Political:

The Political factors directly affect the organization as changes made by different political parties like policy change, etc. are a part of political changes which affect the organization working. There are some parties who have direct relation with the company which leads them in changes of some of the policies of the organization.

2. Economical:

The Economical factors also have influence on the organization. As it is divided between all the factors related to economic growth, inflation rate, FDI, disposal income, etc. The changes in their existing taste and preferences leads to company to change their existing policy of their company to be in a competition.

3. Social:

Social factors such as culture, age, gender, religion etc. they involve shared belief. This factors have a direct influence on the organization as to what extend the marketer understand this factors in understanding the customer’s behavior.

4. Technological:

As in changing environment, everything is changing day by day. New technologies being introduced daily. They have a direct influence on the organization that marketers need to understand and take into consideration about adopting of the technologies to be able to be in the market.

5. Environmental:

The company should understand what product to launch as the product should not provide any harm to the environment. It should be environmental friendly. If a supplier is supplying plastic to an organization but later on the plastic declared as banned so after that supplier won’t be able to supply the material which leads to change in organizations policies.

6. Legal:

Legal factors include – health and safety, equal opportunities, advertising standards, consumer rights and laws, product labelling and product safety. It is clear that companies need to know what is and what is not legal in order to trade successfully. If an organization trades globally this becomes a very tricky area to get right as each country has its own set of rules and regulations.


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