Analysis of the external environment:

The external environment of the business plays an integral part in the success and profitability of
the business. Pest analysis is a famous and commonly used analysis used to analyze the external
environment of the business (Policy, 2018). Following is the analysis of the external environment
for our business related to healthy dips:
Political factors:
Political factors play an important role and influence business and product-related decision
making (Doyle and Stern, 2006). In UAE, there is a lot much political stability because it is not
democracy and democratic system rather the country has a Royal system so there are fewer
chances of having political instability that is encouraging for any business in UAE.
The political factor can play a dominant in our business healthy dip because the change in the
governments can cause a change in the policies and procedures and laws regarding the
businesses. The premier example of the possible effect of these changes in political structure and
government can find our product a non-important item for the households and keep the budget
low of the household starts a campaign to make living simply. The change in the taxation system
and business expansion procedures and practices can be easily restricted by any government due
to any possible reason that can directly affect the business expansions decision of our business
named as healthy dips.
Economic factors:
Economic factors have a direct influence on the purchasing power of the customer that is
considered asking for any business thus have a major influence on the business decision and the
marketing decision as well (Wilson and Gilligan, 2012). UAE has a high per capita income
comparatively and the unemployment rate is on the lower side from the past two decades. These
are some encouraging economic indicators but the increase in tax rates by the UAE government
has caused some increase in inflation level as well. So, these mixed economic indicators will
affect this new business as well.
UAE's economic position is changing deliberately due to various reasons and one possible reason
for the economic downfall is the decrease in oil prices that lead down the economy of Dubai in
the near future. Healthy dip products would also be affected by this economic decision and there
can be a possible decrease in demand for the products and well because dips are not in the
necessity and in the economic downfall more concern is about managing necessities of life. Our
company named a healthy dip pricing decision also will be affected by inflation caused by an
economic downturn.
Socio-cultural and demographic factors:
Social factors are considered as an important factor because these can change the linking and
interest of the customers. The culture of UAE like most of the countries has become a global
culture and employees from all around the world have jobs and residencies in UAE that cause a
global culture that can affect the organizational decision making and marketing activities. The
lifestyles of the inhabitant of the country are luxurious lifestyles due to high paying jobs.
Religion has an importance in this region, and anything prohibited in Islam is prohibited in UAE.
These social plays an important role in influencing new businesses by any means.
Socio-cultural factors can dominantly affect business success in this region. The product like
dips and sauces are not Arab originated but comes from Europe and the American side of the
world. The culture of UAE is dominated by the Europeans and the culture is merely composed
and mixed so these healthy dips like products are prevailing but when any social change come
and importance of the Arab original got highlighted by the influencers then the demand can
decrease and the company can get it on to trouble with low sales and profit and the only solution
is to alter the menu according to Arabian culture.
Technological factors:
In the modern era, technology is rapidly changing and evolving and the technological variables
are more prominent than ever. These rapidly emerging technologies will affect the new business
and gain a competitive advantage over the comporting firm (Hollensen, 2019). Our company must
be advanced in the new technologies about these snacks and dips. The company should keep an
eye on the emerging technologies and flavors developing and becoming popular in dips and
should try to make it. The reason is that the relatively young population is very tech-savvy,
which allows companies across the UAE to leverage technology.
The new flavors of dips and sausages are discovered with proper technology and procedure by
mixing or addition of ingredients. These new technologies and practices can affect the healthy
dips business as the company has to be up to date with these improved technologies in the
research and development department. To get a competitive advantage on other companies who
manufacturing dips or trading dips in the UAE as a country and market. When it comes to
customer retention and acquis ion, technology can also help healthy dips, in this case, to get an
advantage in the UAE completive dips market.

Environmental factors:
Environmental factors are of absolute importance and have a great impact on the marketing
environment as well as the business environment. The business all around the world is moving
toward the environmental concept and green marketing. Our business will also consider green
marketing and have planned to launch the degradable packaging for the products as well. UAE
government is also committed to making their country plastic-free and the businesses are
assisting the government in this cause to get some favor of the government in this cause. UAE as
a country has quite a hot, dry climate, which can result in many different things. For example,
productivity might be slightly lower, farming is not so easy, and air conditioners have the
potential to sell well[ CITATION pes20 \l 1033 ].
Environmental factors also include natural climates and disasters as well. Healthy dips can also
be affected by the changing world environment and global warming. The best and most recent
example of the environmental factor affecting business is the pandemic known as COVID 19 that
has affected the whole business world in general and UAE in specific. The GDPs of the
countries are dropping down to half as businesses are keeping close due to lock down to help
stop spreading the virus. So, our company has to be efficient to respond effectively to the
situation and maintain profitability by changing the offering or business model.

Legal factors:
Legal factors are the most influential factors that can affect the business and exist in a larger
environment. The legal factors can also affect our business and products as well if not
compliance with the laws and regulations of government regarding our business. UAE labor laws
are of absolute importance in our business as Article 65 of the UAE Labor Law identifies the
normal working hours for the private sector as 8 hours per day or 48 hours per week. Federal
laws on food safety and security are important and can be dangerous for the organization's
survival in the market if not followed and implied.
Legal factors can easily and more critically influence startups like healthy dips because these
startups are relatively new and less experience and in the absence of the legal team can lead them
to break laws that have its consequences. The main reason is that businesses don’t have
knowledge of complex business-related and employment-related laws so any mishap can lead to
complexities and troubles for the businesses.

Competitor analysis:
Competitors are an integral part and most influential factor of the internal environment and
market (Kotler, 2009). Various competitors exist against our product in the United Arab Emirates
market. We are offering healthy dips that can be used with the various snacks are offered in the
various flavors including some unique and delicious flavors. Following are the list of companies
exist in the UAE market:

Company name Market Share

Ifantis Humus dips 10 percent.
Santa Maria dips 25 percent.
EL saboor cheese dip 40 percent.
California Garden 30 percent
The above-mentioned table consists of the list of the 4 major competitors of our company that is
going to sell dips in the UAE market that is encouraging the use of these items.
The following table helps us to understand the possible response and the reactions strategy of a
company named as healthy dips:
Company name
Ifantis Humus dips
Santa Maria dips
EL saboor cheese dip
California Garden
Possible response Reactive strategy
This company have that Strong calculation while
potential to copy our product launching the product and try
and have the resource to do to introduce the flavors in the
this as well in rich and market not at one while to
strengthen UAE market. introduce one by one and so
that it is not easy for the
competitor to imitate.
The company toward our Our reactive strategy will be
product responds that they lead by the legal team and our
can try to expose our research and development
company healthy dips with team. A strong reactive
some cheap tactics. campaign, as well as a unique
product, would be a good
response.
The response that is possible Competitive pricing strategy
from this EL saboor company will be used as a response to
is that they can lower the their actions and price
market price because the decision making it would be
company is a locally-based made possible to do that.
company.
There is the least chance of The reactive strategy would
the response from the be developed according to the
company because the response of the company.
company is not very reactive
and alert in case of market
competition.
References
 Doyle, P. and Stern, P., 2006. Marketing management and strategy. Pearson Education.
 Wilson, R.M. and Gilligan, C., 2012. Strategic marketing management. Routledge.
 Perera, R., 2017. The PESTLE analysis. Nerdynaut.
 Policy, P., 2018. What is pestle analysis.
 Hollensen, S., 2019. Marketing management: A relationship approach. Pearson Education.
 Kotler, P., 2009. A framework for marketing management. Pearson Education India.

 pestleanalysis.com, 2020. pestle-analysis-of-uae. [Online]

Available at: https://pestleanalysis.com/pestle-analysis-of-uae/#:~:text=In%20this%20article
%2C%20we%20will,%2C%20organization%2C%20or%20country's%20success.
[Accessed 22 June 2020].