PESTEL Analysis and Competitive Advantage of Zespri.

Strategic Evaluation
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“Strategic Evaluation”
PESTEL Analysis and Competitive Advantage of Zespri
PESTEL analysis is the strategic framework that assists the firm by evaluating the external factors, likewise in the case of Zespri to attain a competitive advantage by availing those opportunities and minimizing threats. The report by Alvarez and Shelman (2012) illustrates that complex political system and complicated policies by the New Zealand government related to Kiwifruit marketing licensing, and marketing board can influence the performance of Zespri. By overviewing the economic factor, unbalance demand of kiwis, fluctuated exchange rates and excessive alteration in sales due to change in economic policies can affect the revenue margin and cost-effectiveness of Zespri. Along with it, adaptive technologies in the food industry enhance the demand for automated systems and processes to maintain food quality. Therefore, technology influences the R&D of Zespri and enhances the cost of innovation to store and improve growing capacity.
By overviewing the social change, consumers shift their preferences from cost to quality which offer an advantage to the firm with a healthy lifestyle and nutritional fruit supply. The environmental concerns are high and sustainability development affects corporate practices remarkably to maintain the social and ecological environment. Besides that, legal enforcement on regulating labor rights laws, quality maintenance, privacy concerns and other disciplinary acts to manage business transparency. With PESTEL analysis, Zespri can avail opportunities by targeting emerging demand with advanced R&D and sustainability in corporate policies. Furthermore, Zespri significantly improves its competitive advantage with the adoption of premium pricing by offering the high quality and nutritional supply of KIWI fruit, from which it can attain a $3 billion profit by 2025.
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