Pest Analysis: Pestel Analysis Of The Philippine Food Industry

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CHAPTER 6 INDUSTRY ANALYSIS
PESTEL ANALYSIS (Political, Economic, Socio-cultural, Technological, Environmental and Legal Analysis)
Socio-cultural
Even though that Filipinos would greatly prefer rice-meals as a primary staple it is never too late to introduce a new product to the market. The food industry is primarily fueled by tastes and fads. The culture of the Filipino is when they like the food that they eat, regardless of the price they will keep on buying the product. Until their marginal utility for the products completely depleted, this is why the food industry is really fueled by tastes and buying behaviors.

Technological The unprecedented advancement of technology in the 21st century has brought about huge changes …show more content…

Number of Food Establishments

Followed by the businesses who offer short term accommodation activities which only takes up 19.9% of the population. The figure paints a picture of the occupation of each of the industries.

The food industry is also responsible for the employment of 171,961 workers (66.6%) in the Philippines as shown in the figure above. The graph shows the number of people who are employed in a specific industry. It also shows the total number of employed workers for the Food and accommodation businesses at 258,102 workers. Number of People Employed in Food Businesses

As for profitability, you gain a 28% profit for every peso you spend in the food business. Though it is beaten by businesses who deal with accommodation, which stands to a return of Php1.76 for every Php1 spent which is recorded to be the highest income generated shown in the graph below. Income in the Food Industry
Industry …show more content…

That is the reason that it is highly susceptible to a huge number of laws and regulations in order to ensure the health and safety of the consumers. Another risk involved in this industry is its huge number of competitors. It is a well-known fact that the food industry is one of the most saturated markets that has ever existed, mainly because it has a huge market population and it is a need for the society. The industry tends to get very competitive because of its sheer number of population of consumers, as well as its producers. Evidently it is a very lucrative industry to step in to, that is why a lot of people tend to penetrate the market in an attempt to make a huge profit from

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