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“Vitamin-Enriched” Bottled Water: PEST Analysis Report


The new “vitamin-enriched” bottled water to be launched in the market requires a critical environmental analysis to guarantee its success in the realms of sales and market penetration. Since the target market segment includes athletes aged between 10 and 30, the PEST (political, economic, social, and technological factors) analysis will facilitate the study of the market’s external environment (Birkholz 43). Fundamentally, any product, which intends to succeed in the market, must observe numerous micro and macro environmental forces so as to stay competitive. Evidently, numerous businesses globally have identified, scrutinized, and adopted their respective environmental forces capable of affecting their endeavors. These signify the aspects and provisions of PEST in a business venture, which relates to the aspects of identifying, studying, and ceasing opportunities in virgin markets with creativity, risk taking tendencies, and novelty.

Political Factors

Political factors affect businesses considerably. It is a critical necessity in setting up and operating a new venture. The prospected product must consider the political factors within the intended locality, region, or internationally in order to offer a relevant, legal, and meaningful business. Government policies and political forces tend to affect the nature and orientation of any product in the marketplace (Wiegel 163). A new product must consider what provisions the territorial government intends to offer for the businessmen and to what extent. Considering such provisions will ensure that the intended product (vitamin-enriched bottled water) thrives within the market and the industry at large.

Considering such provisions will ensure that the concerned organization understands its environment better; hence, can make critical business decisions in regard to business trends and political requirements. Evidently, this factor considers the degree of intervention that respective governments allow within the market. Concurrently, this will allow the concerned business to know what business is legalized within a given territory and which ones cannot perform. These issues will help a new venture in making critical business decisions before investing massively in a business and introducing the new product (vitamin-enriched bottled water) in the market. As a macro environmental factor, political factors thrive to provide the market with the business frameworks and the recommended stipulations. Political factors can affect numerous business provisions and sales of certain products as indicated before. This includes infrastructure, the nature of the workforce, education within the territory and other social factors that are necessary for a new venture. A new product in the market requires viable infrastructural provision, which is a key factor in any meaningful business. The way the product will perform in the market is a subject of political influences.

Economic Factors

New products require considerable economic provisions for their survival. Precisely, economic factor is a key issue required in setting up and operating new businesses and promoting new products. Evidently, the organization will have to consider the aspects of interest rates charged by the immediate financial institutions. Such interest scale might influence the nature of businesses to be operated within a given environment. It will also affect the price of the vitamin-enriched bottled water. Additionally, it is crucial to consider how the government policies will influence the economic factors within a business territory. It is the mandate of every business to observe the interest rates charged by the financial institutions. This might influence the aspects of borrowing critical capitals for running businesses and manufacturing the new product in large quantities to meet the growing market demands. Higher interest rate might disfavor the new business hence will affect the growth and sales of the new product.

Another requirement worth consideration in the economic factors incorporates the general economic growth of a country/region as it influences the buying trends of the targeted customers. For instance, economic crisis will affect the sales of the new product if not properly managed. Additionally, economic factors influence the business trends and the market nature. Precisely, the economy of the nation will obviously affect the expenses, revenues, and other business provisions (Birkholz 65). From this argument, new products in the market must consider the economic aspects of the targeted country. An important provision in this context relates to the aspects of economic growth and other viable opportunities in the economic realms. Precisely, viable economic growth translates to higher incomes of the citizens with subsequent increase in demands of the company’s products. This will eventually increase the revenues and profitability of the concerned business. Thus, it is crucial for a new venture to consider the economic aspects of a given country before investing heavily in the vitamin-enriched bottled water.

Another important economic consideration is the inflation rates of a country. New businesses require stable economic progresses with limited inflation cases. Higher inflation rates mean that employees of any organization will demand escalated wages and cost of operations will also be higher. Additionally, the demands for the vitamin-enriched bottled water will diminish leading to massive losses to the business. Another factor worth consideration is the exchange rates of a given currency when compared to the rest. Loose and fluctuating currency value might affect the sales of vitamin-enriched bottled water tremendously especially when it is marketed and sold internationally. The conversion rates might reduce the net income of the business. Precisely, economic factors are important considerations to make before the set up and operation of any new venture since the factor can either favor or disfavor the concerned business.

Social Factors

It is vital for any new business venture to consider the social aspects of any given market before establishing, marketing, and selling its products in such territories. Evidently, the social trends of a given country might affect its economic trends, business orientation, workforce composition, and the nature of pays. New products require viable social factors. Some social aspects discriminate the sale of some products. This can be evident with the vitamin-enriched bottled water (Morden 86). It is decisive to consider such provisions before trading discriminated products. Studying and understanding the social aspects of a given locality will obviously help the business to make critical decisions on how to establish and operate its business provisions. The sale of products depends on the social beliefs of a given community upon a given commodity. The targeted market segment (athletes aged between 10 and 30) might discriminate the product on social grounds. If prejudicial beliefs disfavor the vitamin-enriched bottled water, its sales will reduce significantly compared to the rest. Before the start up of any business, the owners must consider numerous factors with regard to social provisions. Additionally, the living trends in a given country or locality can also affect the business factors with regard to operations and business ventures.

The consumers’ attitude towards the vitamin-enriched bottled water is a subject of social factors. This might affect the sales of the product as it favors others. Thus, it is crucial for the business to consider the consumer perceptions/behaviors before venturing into the business. Such consideration will help the business to know the products to sell, where, and when. Determining the nature of business will also dictate the social provisions necessary for the establishment and operation of a new venture. As a macro environmental factor, social provisions are important in any business following their vitality, applicability, and relevancy in various businesses and territories. The demographic variability will affect the buying trends of customers, and the nature of goods to avail in the market. This signifies the need to consider the social factors of a given environments before introducing the vitamin-enriched bottled water in the market.

Technological Factors

The emergence and ratification of technology has helped numerous businesses to explore varying markets globally. A new venture requires a viable technological provision in the realms of its operations and production of commodities. Technology is critical since it dictates the nature and trend of any business. It will also dictate the marketing and sales of vitamin-enriched bottled water. It is the mandate of the business to consider the aspects of technology since it is relevant to the current competitive markets. Introduction of the vitamin-enriched bottled water into the market demands the technology in the contexts of its production and promotion. Additionally, the world’s market has become quite competitive that conventional products can hardly survive in the current market trends. It is crucial to consider such aspects in the business realms especially in the new venture (Wiegel 142).

Technological approaches in the business realms have simplified the business aspects in varied contexts. The mode of transaction, production, and communication among the business stakeholders has improved considerably due to the emergence and embracement of technology. Hence, any business venture and new products require the aspects of technology as a macro environmental factor in the corporate realms. Recognition and ratification of technology is a contributor to the competitive advantages that the business might consider in its endeavors. Precisely, technology is required in order to create novel commodities into the market and emerge with fresh business processes. The business must outdo other industry players by introducing the ne vitamin-enriched bottled water, which is technologically and nutritiously advanced. Conclusively, new technological trends will benefit the business and its customers with profitability and satisfaction respectively.

The Firm’s Strategy

The organization intends to consider and handle the external environmental factors critically to ensure that the new vitamin-enriched bottled water thrives in the market. Considering the PEST provisions will front varying requirements in this context. As indicated before, PEST will provide 4 critical macro environmental forces required by this organization in order to understand the market trends and other business provisions for the new product (Morden 123). Strategically, the business intends to address the political issues comprehensively since they can be a major barrier to the establishment and marketing of the new vitamin-enriched bottled water. Concurrently, the firm prospects to establish its economic aspects, social provisions, and technological advancements.


PEST signifies environmental forces that every new business must consider before venturing into an industry. This provision is necessary for any business to understand the market and factors that would affect the business if not managed properly. It is crucial to consider various business factors, which will determine the fate of the new vitamin-enriched bottled water in the market. Importantly, considering and observing the macro environmental factors will ensure that the new product meets what the market requires.

Works Cited

Birkholz, Andreas. Business Analysis of Web.de Ag. München: GRIN Verlag GmbH, 2007. Print.

Morden, Tony. Principles of Strategic Management. Aldershot: ASHGATE, 2007. Print.

Wiegel, Wladimir. Survival Factors of Newly Founded Firms: Theoretical Frameworks and Empirical Evidence. München: GRIN Verlag GmbH, 2011. Print.

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""Vitamin-Enriched" Bottled Water: PEST Analysis." IvyPanda, 19 May 2020, ivypanda.com/essays/vitamin-enriched-bottled-water-pest-analysis/.

1. IvyPanda. ""Vitamin-Enriched" Bottled Water: PEST Analysis." May 19, 2020. https://ivypanda.com/essays/vitamin-enriched-bottled-water-pest-analysis/.


IvyPanda. ""Vitamin-Enriched" Bottled Water: PEST Analysis." May 19, 2020. https://ivypanda.com/essays/vitamin-enriched-bottled-water-pest-analysis/.


IvyPanda. 2020. ""Vitamin-Enriched" Bottled Water: PEST Analysis." May 19, 2020. https://ivypanda.com/essays/vitamin-enriched-bottled-water-pest-analysis/.


IvyPanda. (2020) '"Vitamin-Enriched" Bottled Water: PEST Analysis'. 19 May.

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