Pinatex Environmental Analysis

Question: Discuss about thePinatexfor Environmental Analysis. Answer: Introduction Pinatex is a leather product that is made of pineapple leaves remains. The products were developed by a woman named Carmon Hijosa in the 90s (Joshi, 2014). The product was developed after she realized that the leaves of the pineapple fruit had very fine and strong fiber which could be utilized to make leather products. Carmon realized that the product could be used instead of leather from animal skins. This idea materialized and was put into industrial trial and she perfected the product hence leading to formation of PinatexTm. The product has brought about sustainability in terms of the environment due to the fact that it is environmentally friendly. Pinatex also helps in minimizing cost of production since production does not require additional inputs rather than the ones needed to produce pineapple. The product will be marketed in Australia because of various reasons. The major reason for the decision to market Pinatex in Australia is because of the vibrant leather industry in the country (Mayrhofer, 2012). It therefore means that the introduction of Pinatex into the country can reduce the over-reliance on animal skins in making important products. The market potential and industry dynamics together with favorable government regulations were central in making decision to market Pinatexin Australia. Discussion Environmental Analysis The analysis of the external environmental factors that may affect the international marketing of Pinatex is important in determining and understanding positive and negative influences that exist in the industry and the market in which the business will be operating. The environmental analysis of the product`s new market will include assessment of factors such as political, economic, social,technological, environmental and legal factors: Political Factors There are several political factors that may affect the marketing of Pinatex in the Australian market. One of the political factors that may affect the international marketing of Pinatex is regulations that may be politically motivated to target products from a particular country. International politics play a very important role in international marketing and international trade. Bilateral and political relations between Philippines and Australia may affect the marketing of Pinatex in Australia (Paliwoda, 2013). Since the two countries have favorable relations between them, it is expected that the introduction of PInatex into Australia will not be difficult since there will be no politically motivated resistance. Another political factor that may affect the marketing of Pinatex in Australia is the resistance from locals who depend on leather products. They may influence the government to restrict the use of the new product in the country, a move which would greatly affect the market ing of Pinatex. Economical Factors There are micro economic and macro economic factors that may affect the marketing of Pinatex internationally. One of these factors includes the economic growth rate of the country in which the product is being introduced. The level of economic growth in Australia is expected to be 3.1%percent according to The World Bank. This is a good indicator of the growth in levels of consumption within the country. This is because economic growth results into improved levels of income which will increase the disposable income of individuals. This will in turn increase the demand of textile products and especially Pinatex which will increase sales volumes. Inflation rate is also an important factor when marketing a product in a country. High inflation rate increases prices of product and therefore decreasing the demand of the product. The level of inflation in Australia is low which means that the prices are stable hence making it favorable for the company to market Pinatex in Australia. Another important economic factor is the cost of factors of production in a country. This is a very important factor especially in the manufacturing industry (Cant, 2006). These are cost of labor, entrepreneurship, land and capital. Social Factors The social factors that may affect the marketing of Pinatex internationally include traditions, beliefs, culture, practices and customs of the people. There are different cultures in different countries and in different regions. This therefore means that the way of life of a community affects their consumption behavior. In Australia, the culture of the country is entrenched on the use of textile products and desire for sustainable development. This makes it suitable for Ananas Annam to market Pinatex (Joshi, 2014). The introduction of Pinatex in Australia will mean that the people will be more relieved since it makes high quality products at cheaper cost and its environmentally sustainable. The tradition of the people in Australia accepts the use of textile products unlike in some countries where the use of textile products is very minimal (Paliwoda, 2013). The social life of people also determines consumption of a product, for example in a country in Qatar, the use of products as wo ven baskets is very rare since the textile industry is not developed in the country. If Pinatex is introduced in such a country, it will be more difficult to successfully market the product unlike in a country like Australia. Technological Factors The technological factors that may affect the marketing of Pinatex in Australia include changes in production methods, processes and techniques. These changes help in increasing efficiency in the manufacturing and processing of goods. One of the technological factors that is expected to affect the marketing of Pinatex is the development of machinery with better knitting, pleating and decorating ability compared to other machines used in the past. The adoption of this technology will be costly for the company but will help in ensuring efficiency and effectiveness in production. TPM Company has developed a machine which is can perform different printing and designing activities. Technology in marketing internationally will also be a crucial factor when marketing Pinatex. The traditional forms of marketing are becoming unpopular with the consumers and they are too costly for many organizations. Many companies are shifting gears to electronic marketing and commerce. This is cheaper and m ore convenient than the conventional methods. Social media advertising has also been very important in influencing marketing of products internationally (Kleindl, 2007). Therefore, Ananas Annam should be technologically informed in order to keep up with the competition in this industry and help the company in minimizing costs of production. Environmental Factors The environmental factors that affect marketing of Pinatex include things related to pollution of the environment. Since Pinatex is made from the leaves of a pineapple fruit, it is environmentally friendly and sustainable. This is because, the company advocates production of pineapples using organic means to reduce environmental pollution and ensure safety of consumers. The production methods of the company are environmentally friendly since, the manufacturing process does not involve use of heavy fuels which are environmentally hazardous. The introduction of Pinatex in Australia will also help in conserving nature and saving animals which would have otherwise been slaughtered to obtain hides and skins. The company will also ensure that it abides to all environmental and industrial regulations set by the national and local authorities (Fitzen, 2009). The processes used by the company are ecologically friendly and therefore, it will be a positive for the country when Pinatex will be i ntroduced in Australia. Use of Pinatex to make textile products also helps in optimizing use of resources. This is because the pineapple leaves that would have been disposed off will be converted to another economically important product. Legal Factors There are various legal factors that affect the international marketing of a product. This factors range from adherence to safety rules and regulations to payment of license fees. Before a product is approved for use and sale in a new country, it has to undergo various processes. The product should meet international standards as per the ISO regulations. The product also has to meet local quality and safety standards. For the company to market Pinatex in Australia, it has to register the product in the country and pay for permits to allow the importation of the product into the country (Pride Ferrell, 2017). The company has to obey the labor and industrial laws of the country as well. The management of the company should be aware of competition laws and all the other laws that govern trade in the country in which they tend to introduce a product. The legal environment is very important because it helps the company prepare adequately on time so as to avoid waste of time and resources when it begins the approval process. Conclusion There are several factors that a company should consider before deciding to market a product internationally and in which country to market the product. It is important to undertake environmental analysis in order to understand the market and the industry. This analysis gives the company an insight on strengths and weaknesses of players in the industry and opportunities that can be exploited by the company as it ventures the market. This analysis also helps in identifying the possible challenges that the company is going to face when marketing the product. The organization is then able to put strategies to overcome these challenges. This report will help the management of Ananas Anam in understanding the Australian textile industry and how introducing this product will affect the market and the industry in general. References Cant, M. C. (2006). Marketing management. Cape Town, South Africa: Juta. Joshi, R. (2014). International marketing (1st ed.). New Delhi: Oxford Univ. Press. Journal of International Marketing, volume 20 / number 2 / 2012. (2012). 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