For all the business organizations, business expansion is one of the crucial and important tasks, thus, they conduct a market analysis of the target market to evaluate its potential for the successful entry and operations. This report is based on the evaluation of the external environment of India, for a vitamin and dietary supplement product. According to PESTLE analysis, India is a highly attractive market due to a positive and supportive political and legal environment for the growth of Vitamin and Dietary industry. Further, increasing disposable income of consumers also an opportunity from an economic point of view for the industry. Changing perception and concern for health to improve immunity power is cause of successful entry and acceptance of vitamins and dietary supplement product. However, the intensity of competition in the industry is high due to availability of several competitors but supportive technological infrastructure and environmental consideration, climate change issues favors the long term growth of the industry.
Executive Summary For all the business organizations, business expansion is one of the crucial and important tasks, thus, they conduct a market analysis of the target market to evaluate its potential for the successful entry and operations. This report is based on the evaluation of the external environment of India, for a vitamin and dietary supplement product. According to PESTLE analysis, India is a highly attractive market due to a positive and supportive political and legal environment for the growth of Vitamin and Dietary industry. Further, increasing disposable income of consumers also an opportunity from an economic point of view for the industry. Changing perception and concern for health to improve immunity power is cause of successful entry and acceptance of vitamins and dietary supplement product. However, the intensity of competition in the industry is high due to availability of several competitors but supportive technological infrastructure and environmental consideration, climate change issues favors the long term growth of the industry. Table of Contents 1. Introduction3 1.1. Product:3 1.2. Country:3 2. PESTLE Analysis4 2.1. Political:4 2.2. Economical:5 2.3. Social:6 2.4. Technological:7 2.5. Legal:8 2.6. Environmental:9 3. Opportunities and Threats Available in the External Market9 3.1. Opportunities9 3.2. Threats10 4. Conclusion11 References13 1. Introduction In the 21st century, the era of digitization has provided numerous opportunities to small and medium sized business organizations to expand business in the international market. In doer to expand the business in a market, it is imperative for the organizations to conduct an analysis of the potential market (Ji, Dimitratos & Huang, 2016). This report presents a PESTLE Analysis and evaluation of opportunities and threats available in the Indian market for a Dietary Supplement Products. 1.1. Product: For the expansion of the business in a new market, the selected product is a range of dietary supplements. The dietary supplement products are introduced in the market to fulfill the deficiency of vitamin and other minerals and nutrition in the human body. Changes in the lifestyle and poor food habits causes several deficiencies reacted to low level of vitamin A, B, C, D and so on, iron, minerals in human body mainly in children, youngsters and adults. These dietary supplements are beneficial to balance the level of these deficiencies and fulfill the requirements of the body to have enough vitamins and nutrition (Das, Bhaumik, Raychaudhuri & Chakraborty, 2012). 1.2. Country: Nowadays, India is one of the attractive and emerging economies of the world. Changes in the social and educational infrastructure have improved the knowledge of Indian consumers about the healthy lifestyle (Bisht, Pitchforth & Murray, 2012). The main reason for targeting India to for expansion is high potential and further growth for the vitamin and dietary supplement industry. Apart from this, health consciousness of individual consumers is increasing, so to benefit and healthy, Indian people rely on dietary supplement products, which increases the attractiveness of this market (Pathak & Nichter, 2015). 2. PESTLE Analysis For the vitamin and dietary supplement market, Indian environment is highly attractive and potential. An evaluation of the external environment of India in terms of PESTLE analysis is as follows: 2.1. Political: Political environment exercises great impact on any industry and business. The political factors affect the productivity and profitability of the company (India Country Profile, 2015). India has the world biggest democratic system to operate in which different political parties has an active involvement to present their action and reaction of different activities, decision and laws passed by government. In India, strong democratic setup is created by the government, which is beneficial for the support of international business. In the country, several policies for the promotion of the international business are introduced for the betterment of people (India Country Profile, 2015). According to the Indian political environment, strict laws are developed for the intellectual property rights and protection of copyrights, which ensures secure operations of business in the country. In regards to the vitamin and dietary supplement industry, the government policies and regulations supports the entry of this product in the Indian market. There are low entry barriers as the country has trade relations with different countries such as America, Japan, Singapore and so on In order to balance the inadequate health care infrastructure in the country, there is a need to have a wide range of dietary and supplement products for all income segments. Thus, on the political ground, entry of new product in the Indian market is supported by the government (Euromonitor International, 2016). 2.2. Economical: At the present time, India is considered as one of the top emerging economies, which has a huge potential for future growth and success. A strong economic infrastructure facilitates the business firm to enjoy long term profitability. It has the second largest workforce of the work force, which attract the foreign investors. Apart from this, a developed equity market also makes the economic environment of the country strong (India Country Profile, 2015). However, in India, management of stubborn inflation rate and poor infrastructure and slow manufacturing process are some challenges for the investors. To ensure a long term success by controlling corruption and improve the GDP of the country, the current President of India, Narendra Modi has taken a crucial decision of demonetization. It is predicted by the expert that this demonetization has current short term pain, but will have a positive impact on the future growth of the country, as it will enhance the income of the common people, and provide high rate of employment (Choudhury, 2016). In relation to the nutraceutical and consumer health industry, mainly for vitamins and dietary supplements, the Indian economic environment is very influential. As the disposable income of Indian consumers is increased, purchasing power of the consumers is also becoming stronger. It has been observed from the reports that the growth of individual economy in 2016 will continue by 7% or more, which is a fortunate sing for a news business to enjoy several opportunities and potential growth (India Brand Equity Foundation, 2016). At the same time, it is also evaluated form report of Euromonitor International (2016) in India, vitamins and nutrition supplements has a recorded growth of 13% in 2016. 2.3. Social: In the evaluation of the external market environment, the role of social factors is significant. On social grounds, India is very attractive and as per the report given by National Family Survey 2015-2016, it is the second nation of the world in terms of population (Singh, 2016). In 2016, in India the estimated growth rate of population is 1.19%. The country has a highly diversified culture and a young population. It has been estimated that the youth dependency ratio of the country is 43.9% (India Demographics Profile, 2016). Nowadays, the poor infrastructure of education and health care system has created several issues in the social environment of the country. In India, government entities and private healthcare systems are suffering from the management of health and medical needs and requirement of population due to restriction of quality healthcare facilities and limitations of resources (Goli & Arokiasamy, 2013). The social environment of the country favors growth of vitamin and dietary supplement products. In the Indian society, demands of vitamins and dietary supplement products are increasing among urban people, mainly for adult, youngsters, children, working as well as house women, sport people and so on. Different causes such as a fast pace of schedule, low immunity power, and lack of balance between work and personal life, hectic pace of urban life and so on, have increased requirement of Indian people to have dietary supplements, so that they can maintain their health and increase immunity power to fight with the diseases (Pathak & Nichter, 2015). The government of India has also executed several strategies and programs to rebuild the social infrastructure but there is a lack of quality healthcare educational and infrastructure system is a major challenge. A high extent of urbanization and pressure of providing them an adequate infrastructure and healthcare facilities is a challenge in India (Bisht, Pitchforth & Murray, 2012). 2.4. Technological: In the 21st century, technological landscape of India has been transformed from traditional to digital. The technology sector of India has improved at a great extent and the country has rich resources of IT. In India a sizable increase in the extent of technology institutions and strong progress of telecom, IT and IT enabled services support the technological infrastructure of the India (India Country Profile, 2015). A strong knowledge based workforce is available in India, which has the abilities and skills to utilize the communication tools in an effective manner. From the technological point of views, India is an attractive destination, as it offers the latest IT infrastructure for developing a direct and open communication with the stakeholders (Euromonitor International, 2016). In regards to vitamin and dietary supplements, this IT infrastructure is beneficial for the companies to share the information with stakeholders on time and develop a virtual team structure for handling global operations. For the product base companies, a large and active warehouse can be developed with the assistance of technologies and informational tools. By using the latest technology and IT tools, it is easy for the firm to deliver the product on time and manage orders to the customers. 2.5. Legal: When a market operates in country its legal and regulatory frameworks have a direct impact on its operations. In India, legal environment of the country is very influential and supportive for the foreign investors. In India, the government has also developed a systematic taxation system for protection, corruption and other illegal activities such as income tax, service tax, and sales tax and so on (Mohd & Sharma, 2013). Implementation of VAT is considered as the strength of Indian legal system. At the same time, in spite of having laws and policies, intellectual property laws in the country are little weak. The regulatory environment of India to promote the healthcare sector, government has posed several implications. In India, employment law and regulations are also significant and focus on equal employment opportunities. The country laws are specific and protect child labor and slave policies (Euromonitor International, 2016). First of all, ingredients quality and manufacturing process of the health supplement product are highly important. After that, it is considerable that in the Indian market, to follow the quality process and approaches under Good Manufacturing Practices (GMP). In the field of vitamin and nutrition health supplements, Indian law supports the healthcare products (India Country Profile, 2015). However, product market regulations in the market are little stiff, which can disappoint the foreign traders. It is also a