Pestel Analysis Of Ornua

924 Words 4 Pages
Ornua is an agri- food commercial co-operative which markets and sells dairy products. It employs up to 3000 people globally and exports to 100 countries. It has annualized sales of over 2 milion. Owners of brands such as kerrygold, Pilgrims choice, Dubliners Cheese etc. its main purpose is to create sustainable routes to market for high quality Irish dairy goods (Ornua 2015). They have developed a very successful organization through years of hard work and dedication.

Q1. Pestel analysis is a concept in marketing principles which allows companies to track the market they’re operating in. This framework is so important in a business as it represents the strategic management that defines a company. The factors discussed below greatly influence the dairy industry.

Political/legal factors: The irish government tries its best to support and help Ornua to expand
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Like any other business this recession has greatly impacted the profitability of Ornua as buyers want to find cheaper alternatives. The recession has led to a lot of unemployment which decreases consumer’s disposable income greatly. In 2007 there was a downturn in milk prices and a decrease in purchasing which lead to a depressed trading environment across the entire market. To overcome this, Kevin Lane, CEO of Ornua, implemented a Business Transformation Strategy which stated that Ornua must internationalize, innovate and refinance. In todays market, Ornua have to work very hard to gain more customers, and create products that will capture the interests of consumers all over the world. They focus their goods on the ‘core pillars’ that their goods are of premium quality and above average. They focus their interest on their most popular brand, Kerrygold, which has been a huge success worldwide. They constantly develop new products and enter new markets such as launching Kerrygold Irish Cream Liqueur in the US in

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