BUS301 - Lembu Dairy: PESTLE Analysis for Singapore Market Expansion

This report provides a PESTLE analysis of Lembu Dairy, a Malaysian dairy company, focusing on its potential expansion into the Singapore market. The analysis examines the political stability, economic conditions including Singapore's high per capita income and low interest rates, social factors such as consumer buying power and lifestyle changes, technological advancements like internet penetration and e-commerce, environmental concerns regarding pollution and water resources, and legal frameworks including intellectual property rights. The report concludes that Singapore offers significant opportunities for Lembu Dairy due to its stable political climate, strong economy, and evolving consumer preferences, while also considering the environmental and legal challenges. The PESTLE analysis serves as a strategic tool to evaluate the external environment and inform the company's expansion plans, offering insights into market research, competitive analysis, and strategic marketing.

Lembu Dairy Beyond
Milk

Question 2: How to use PESTLE for evaluating expected business opportunities?
Lembu Dairy is a dairy of Malaysia which acquires a large of target urban city market of
Malaysia. The company is one of the largest producer of milk and has been capable to earn
profits by providing superior quality of products to its customers and segregating its value chain.
This company faces a tough competition in the market of milk from its rivals in order to market
its product line. In order to increase its business and expand its target market across geographical
boundaries, the company plans to introduce various growth prospects like globalization and
diversification of product line.
It is essential to determine the financial components of company to ascertain business
opportunities. Further, it is also important to determine resources which are available and
compute total finance that are needed to grasp new business opportunities. In case of Lembu
dairy, it is a profit earning company and it has required resources in order to establish a base for
a new product line. On the other hand it is essential to carry out a market research which should
include to ascertain target customer, their location, their buying patterns, current trends of market
and competition in that market(Michaud and et. al, 2020). This research will include various
strategic marketing tools which help to provide deep knowledge of market environment such as
PESTEL and SWOT analysis. These marketing tools helps company to analyse strengths and
weaknesses of company and impact of various internal and external environment on the
company.
PESTEL Analysis
PESTLE Analysis is a marketing tool used to ascertain the external environment for a
business. It is basically a market research conducted in some cases majorly when company wants
to establish a new infrastructure in new market. In the case of Lembu dairy, it is a dairy of
Malaysia and to expand its market it has an opportunity to expand in Singapore. The PESTLE
Analysis for Lembu dairy is conducted and the political, legal, economical, technological, social
and environmental factors of Singapore are taken into consideration to ascertain the opportunities
and threat to establish a new infrastructure at Singapore. The classification is given below:
1. POLITICAL: According to the report of Political & Economic Risk Consultancy
Limited (2020), Singapore is one of the nation in world which have lowest political risk.
As it is a democratic country the political environment of Singapore is stable and
functions as a base to countrywide prosperity and harmony(Smajic and et. al, 2020).

Lembu Dairy has a steady presence in the region of Malaysia. It would help the company
to establish in new geographical market, particularly Singapore. The political stability in
Singapore plays an essential role for Lembu dairy to expand its market over there as there
will be less or no complications during expansion. Further, Lembu dairy can also go with
product diversification in order to make it easy to penetrate in market of Singapore.
2. ECONOMIC: Singapore has an independent market with a flourishing economy which
is emerging very rapidly. Among all the ASEAN nations, Singapore has highest per-
capita income which helps to create a corruption-free environment. The financial position
of Lembu dairy is sound enough to make more investment in Singapore. Singapore has a
well controlled financial and legal system and strengthened with talented manpower.
Decrease in the rates of interest in Singapore is a chance for Lembu dairy to raise finance
and funds at a lower cost(Wu and et. al, 2020). Lembu Dairy has the opportunity to
utilize rise of wealthy consumers and their growing disposable income to establish a
more particularly designed merchandise to address that demand.
3. SOCIAL: Although, like other nations Singapore has a traditional family values in
practice. Even so the young generation in Singapore is in influence of western culture
more due to which the Singaporeans needs to work hard in order to fulfil their necessities
of desires. By the above it can be concluded that business sector should expect high
buying power of consumers there. Lembu dairy is service-oriented in nature and
Singapore has dedicated and adequate human capital which is beneficial for Lembu dairy
to survive in a competitive market(Chua and et. al, 2020). Lembu dairy has a chance to
establish in Singapore because of improvement in the expectation and lifestyle of
customers which led to change in their taste and needs which creates more chances and
opportunities to promote the establishment of Lembu dairy.
4. TECHNOLOGICAL: Internet plays an important role in the growth of Singapore as it
improves connectivity and simplify communication. Internet also led to improve social
networking and Lembu dairy has strong online existence on various social netwrk
platform. Activeness on social media help the company to earn more through rise in e-
commerce trends. On the other hand, Lembu dairy has a great IT infrastructure which is
effectively enforced and well designed. Lembu dairy has a great opportunity to ensure its
online presence on several social network platforms because of arrival of e-commerce

and social media marketing. Innovative incorporation of technology will increase
performance, decrease cost and bring to the rapid establishment of new product.
5. ENVIRONMENTAL: Population in the urban areas of Singapore due to transportation
is a highest concern in Singapore and ranks at 27 for highest carbon emission regardless
of a small island country. The pollution there is also caused because of the production of
oil by-products. As a result of this pollution processed and desalinated water is used in
Singapore for purpose of drinking(Guo and et. al, 2020). Due to this Singapore rely on
Malaysia for water. Due to this Lembu dairy has a power to modify natural, ecological
and social outcomes by using environmental concerns.
6. LEGAL: Singapore has several cross-border laws and rules and also enforced a few
programs for e- commerce organisation. The laws and regulations enforced in Singapore
include copyright protection, electronic transaction rules, revision of the proof act, import
and export procedures, tax issues, intellectual property rights, etc. Lembu dairy have
various intellectual property rights which helps to make the company exclusive and
protect from competitors to copy the product. So it will be easy and beneficial for Lembu
dairy in order to establish in Singapore.
REFERENCES
Books and journals:
Michaud, S.A. and et. al, 2020. Process and Workflow for Preparation of Disparate Mouse
Tissues for Proteomic Analysis. Journal of proteome research.
Smajic, J. and et. al, 2020. Capacity Retention Analysis in Aluminum-Sulfur Batteries. ACS
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Wu, H. and et. al, 2020. Comparative analysis of microstructure and reactive sites for nuclear
graphite IG-110 and graphite matrix A3. Journal of Nuclear Materials, 528, p.151802.
Chua, K.W. and et. al, 2020. Effects of ethanol preservation and formalin fixation on amino acid
stable isotope analysis (δ13C and δ15N) and its ecological applications. Limnology and
Oceanography: Methods, 18(2), pp.77-88.
Guo, Q. and et. al, 2020. Qualitative and quantitative analysis of source for organic carbon and
nitrogen in sediments of rivers and lakes based on stable isotopes. Ecotoxicology and
Environmental Safety, 195, p.110436.