Introduction
It is necessary to explore the macro-environment of Egypt’s food industry with some emphasis on the Floss Halva product. The PESTL analysis should be used to analyze the political, economic, social, technological, and legal factors that significantly influence the development of the industry and brand.
Political Factors
The government of Egypt provides incentives to support and promote the food industry. The authorities attach great importance to innovation and the development of production technologies (Perez et al., 2021). The effect of the government’s promotion of reforms in the food industry is positive for Floss Halva because of more opportunities to receive investments. However, policies to control the cost of food products can be potentially negative for Floss Halva because of limiting adaptability to the market.
Economic Factors
The current economic situation in Egypt is rather unstable as it depends on the tourism and agricultural sectors, as well as imports and exports. The devaluation of the Egyptian pound has impacted the cost of raw materials (Ouda et al., 2019). This factor affected Floss Halva’s production costs negatively. Furthermore, changes in exports can decrease Floss Halva’s export volumes. Additionally, consumers’ reduced purchasing power due to the pound devaluation is also negative for the brand.
Social Factors
Modern consumers are more focused on healthier food products, and this aspect has led to an increased demand for high-quality products. The consumption of healthy foods in Egypt increases because of lifestyle changes and international trends’ influence. Thus, consumers’ focus on healthier products can be negative for Floss Halva, leading to decreased sweets sales. However, there is a positive shift in attitudes towards local and bio-products that can be beneficial for organic Floss Halva and its popularity.
Technological Factors
The use of electronic and mobile commerce methods has increased in Egypt. Digital technologies have enabled businesses to reach a wider customer base and offer more competitive prices (Perez et al., 2021). This tendency is positive for Floss Halva because of the possibilities to promote and sell products effectively, using the website and online markets.
Legal Factors
The industry’s success depends on compliance with local and international laws relating to production and sales. The laws regarding product safety and labeling norms also have certain impacts on Floss Halva because they regulate these products’ exports. Some restrictions on the import and export of food products, as well as new strict control measures, should be considered as they can affect Floss Halva’s promotion and sales negatively.
References
Ouda, S. A., Abd El-Hafeez Zohry, Alkitkat, H., Morsy, M., Sayad, T., & Kamel, A. (2019). Future of food gaps in Egypt: Obstacles and opportunities (2nd ed.). Springer International Publishing.
Perez, N. D., Kassim, Y., Ringler, C., Thomas, T. S., Eldidi, H., & Breisinger, C. (2021). Climate-resilience policies and investments for Egypt’s agriculture sector: Sustaining productivity and food security. International Food Policy Research Institute.