RUNNING HEAD: Macro environmental analysis 1

Macro environmental analysis

Name: Nathaniel Bellamy Maramis

ID: 30834988

Tutorial Time: Monday 18:00

Word count: 2000

 Macro environmental analysis 2

Macro environmental analysis Australian pet wearable microenvironment.

Overview of the broader industry

2.1 Between 2020 and 2027, the worldwide pet wearable market, which was valued at 1.6 billion in
the year 2019 USD, is expected to rise at a compound annual growth rate of 14.3 percent. (Sinanan, 2018)
One of the vital factors that have to lead to the growth of the pet wearable market is the rise in pet
expenditure. The rise of pet expenditure came about due to the upthrust in disposable earnings in various
states including Australia, India, and China.

Also, advertising the significance of animal health is forecasted to increase market growth over
the predicted period. Having integrated the Internet of Things in pet wearables has caused great
anticipation on the possibilities of outcomes it could cause concerning medical diagnosis and treatment
of pets. (Strengers, 2019)

Figure 1

As displayed in figure 1 above, the pet wearable market is anticipated to rise rapidly between the
year 2020 and the year 2027 in the US. ( Richardson, 2017) The rise in the pet wearable global market has

2.2
 Macro environmental analysis 3

a positive impact on the growth of the market in Australia because global trends always attract
competitors and investors from all over the globe. 3.1

The wearable technology market is being swiftly adopted due to its diverse applications. The
wearable technology can be used in monitoring behavior, identifying and tracking, medical diagnosis as
3.2 well as pet security. The wearable technology devices assist pet owners in checking and tracking their
pets' daily activities. Also, these gadgets allow pet owners to track vital statistical information such as
calories burnt, rest patterns as well as the heart rate. The pet wearable market growth has also been
highly influenced by the integration of the various technologies including GPS and RFID3.3
(Radio Frequency
Identification) that has proven to improve the quality of pet’s life.

RFID sensors, motion sensors, GPS trackers, antennas, cameras, transmitters, Bluetooth, and
3.4
accelerometer sensors are some of the key technologies that have been utilized in the making of pet
wearable devices. These technologies have enabled the biomechanical and physiological systems of the
body to be measured while tracking body movement. This technology has thus enabled pet owners and
doctors to track and pinpoint possible early infections before they escalate and mitigating the threats.
Also, the gadget allows pet owners to enhance the pets interact with the environment by monitoring the
behavior of the pet. Also, the pet wearable gadgets provide information about the intake of food which
allows the pet owners to monitor the pet's well-being and health.

Even though the presence of opportunities for the growth of the pet wearable industry is evident,
some challenges threaten to slow down market growth. High power consumption in conjunction with
Short battery life has proven to be a huge challenge for the growth of the pet wearable market.

The majority of the pet wearable gadgets incorporate advance and modern technologies that are
notorious in consuming a high amount of power. Some of these high power consumption technologies
include GPS and wireless networks thus calling for frequent re-charging. Consequently, frequent charging
cycles kill battery life and thus calling for additional expenses from the owner thus hindering the market
growth. Also, the initial cost of the pet wearable devices tends to be high because the devices utilize high-
end technologies. This high initial cost is predicted to slow down the pet wearable market growth
especially in the developing economies.

3.5
Suppliers
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The suppliers of the pet wearable industry products possess the power to control the success of
the business where they are the largest suppliers.

Customers

The identity of the customers in the pet wearable industry whether international or local and their
purpose in purchasing the products plays a huge role in the marketing and services strategies of the
industry.

Competition
4.1

Firms that sell similar pet wearable gadgets are referred to each other's competition. Firms in the
industry must work harder to innovate the products in an attempt to leverage the competition and reap
better results.

Resellers

In cases where third-party intermediaries for instance retailers market the gadgets, the success
of the firm is laid upon these resellers.

The public

The pet wearable industry must satisfy the public. Before any firm in the pet wearable industry
makes a product-related move, the firm must consider how the public would be affected by the move.
The public possesses the power to propel the success or failure of the firm.

Application Insights

Leaning on the application, the pet wearable market is divided into tracking and
identification, medical treatment and diagnosis, monitoring and control, security, and safety. In 2019, the
segment responsible for identification and tracking dominated the pet wearable market having acquired
a share of over 63.0 percent. According to research, more than 10 million pets are lost or stolen in the
U.S. each year. To counteract such events, many pet owners have found it necessary to invest in pet

4.2
4.3
Macro environmental analysis 5

wearable technologies including smartwatches and smart collars for pets thus propelling the growth in
the segment.

5.1

Figure 2

Nevertheless, there is a projection on the rise of CAGR in the medical diagnosis and
treatment segment between 2020 and 2027. The projection could be credited to the increasing want for
wearable gadgets that point out quantified information on physical activities and healthy pets.
Furthermore, pets including cats and dogs that encounter obesity mostly attract severe diseases capable
of cutting down their lives by two or three years. According to research, done in April 2018, approximately
56% of dogs and 60% of cats in Australia were either overweight or obese in 2017. Consequently, wearable
 Macro environmental analysis 6

health monitoring smart devices can play a vital role in mitigating the obesity issues thus improving pet's
lives.

Key companies and Market Insights

The worldwide market is rapidly emerging and thus experiencing a high level of completion
between existing players and entrants. Nonetheless, the major players in the pet wearable devices have
laid their focus on study and innovative strategies intending to develop unique products to expand the
market. In addition, companies and firms are coming together to form alliances to ensure their position
on the global market is strengthened. 6.1

The active participants have mainly laid their targets on making innovative products
capable of gathering health information such as distance walked and calories burned that can make
veterinarian work much easier.

6.2
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7.1
Figure3

The high market size and revenue focus in figure 3 above raises great anticipation for the
rise of the pet wearable market both globally and in Australia.

Macro factors related to the pet wearable industry

The macro-environment of any industry is molded by a variety of forces that are likely to
determine the well-being of the industry. These forces possess capabilities to bring harm to the industry
Macro environmental analysis 8

8.1
or to create opportunities for the industry to grow. Here, I use the PESTEL analysis, which is a tool, used
to study the situation analysis which in turn allows us to spot vital macro factors affecting an industry or
firm. Concisely, the analysis is vital for identifying the various macro-factors that affect the pet wearable
market industry. The analysis is also capable of pointing out the macro factors that may vary in the future
as well as utilize the opportunities and mitigate any threat that might arise in the market.

Figure 4

As illustrated in figure 4 above, some of the vital macro factors influencing an industry
can include political factors, technological factors, environmental factors, social factors, economical
factors as well as legal factors. In the long run, these macro factors also possess the ability to also influence
micro factors.

PESTEL analysis of the pet wearable industry in Australia

Political factor
Macro environmental analysis 9

In Australia, there exist a stable political environment for the growth of the pet wearable industry
since the technology has the potential to solve many health issues for pets in Australia. Moreover, the
majority of the governments on the globe tend to possess promising attitudes as well as initiatives for
supporting industries that relate to fitness and health. 9.1

These political factors possess a huge implication on the microenvironment. Having a

stable political environment creates a suitable microenvironment for many competitors to venture into
the pet wearable industry thus raising the competition in the industry.

Environmental factor

The Australian pet wearable industry is researching better sustainable market

environments that could raise a more environmentally friendly space for increased production
and profitability. Nevertheless, transportation and manufacturing of the pet wearing gadgets are
said to create some amount of environmental pollution that affects the greenhouse.
9.2

This environmental factor has a direct implication on the micro factors of the pet
wearable industry. The fact that the pet wearable gadget can pollute the environment can disrupt
customer relations since some of the customers want pollution-free gadgets.

Social factor

Consequently, the society has grown to be more health-conscious in Australia.

Technically, everyone will tend to utilize the services and products that are capable of benefitting
their health or the health of their pets. The pet wearable industry is direct and clear with its
intension of reducing the health risks thus portraying a positive image in the market. Thus, the
social factor in the market raises no major concern. 9.3

The social factor possesses a positive implication on the micro factors. Because
society has accepted the pet wearable gadgets, the customers' factor of the microenvironment Is
greatly improved.

Technological factor
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The technological factor does not raise and complex issue when it comes to pet
wearable products in Australia. The pet wearable industry in Australia has applied innovative and
up-to-date technology. Nevertheless, the pet wearable industry might be subjected to strain in
the scenario of a rapid change in technology. This is because the industry is expected to keep up
with the latest technologies for better disruptive management.

The technological factor of the pet wearable industry also possesses an

implication on the microenvironment. The changing technologies imply a constant need for
employees who are updated on the latest technologies for their product innovations.

Legal factor

The pet wearable industry in Australia is pro consumer’s protection. The industry
has put up strict measures to ensure all the products follow the safety regulations laid out by the
world health organization and no announcement for a10.1
change on the consumer codes in the
future has been made.

The fact that the pet wearable industry follows the legal procedures for the safety of their
customers implies that there is likely to be an attraction to shareholders and investors in the
microenvironment.

Economics factor

10.2
The pet wearable products in Australia are economical and affordable for the
majority of the population. Besides, the Australian pet wearable market possesses a wide range
of products that fit into various people's budgets. Since the people at large would not mind
spending their money on fitness-related products, the pet wearable products are readily available
for those who are interested in monitoring the health of their pets. The fact that most people are
willing to spend their income on fitness raises a big financial opportunity for the Australian firms
that tend to invest in the pet wearable industry. Besides, having the pet wearable industry in the
market has raised countless job opportunities for the citizens of Australia. (Ramokapane, 2019)
Macro environmental analysis 11

The positive economic factor of the pet wearable industry possesses a direct
impact on the microenvironment. Having a wide range of products that fit on various people's
budgets tends to attract more customers as well as suppliers and investors of the
microenvironment.

Macro factors equality presidency

The macro factors have no specific precedence. This is because every factor
depends on another. It is generally not possible for the industry to stand in the absence of any of
the factors. For instance, if a pet wearable firm neglects the technological factor, competitors who
keep up with the latest technologies and eventually fail would outrun the firm. (Davidson, 2019)
Consequently, in a scenario where a firm fails to meet the legal standards for the safety of the
users, the government might eventually shut down the firm. Concisely, the macro factors are of
equal importance and fail to follow pre-defined precedence.

11.1
 Macro environmental analysis 12

References

Ramokapane, K. M., van der Linden, D., & Zamansky, A. (2019, November). Does my dog need a

gadget? What can we learn from pet owners' motivations for using pet wearables?. In Proceedings of the

Sixth International Conference on Animal-Computer Interaction (pp. 1-6).

Richardson, I., Hjorth, L., Strengers, Y., & Balmford, W. (2017). Careful surveillance at play: human-

animal relations and mobile media in the home. In Refiguring techniques in digital visual research (pp. 105-

116). Palgrave Macmillan, Cham.

Sinanan, J., & Hjorth, L. (2018). Careful families and care as ‘kinwork’:: An intergenerational study

of families and digital media use in Melbourne, Australia. Connecting families, 181-200.

Strengers, Y., Pink, S., & Nicholls, L. (2019). Smart energy futures and social practice imaginaries:

Forecasting scenarios for pet care in Australian homes. Energy research & social science, 48, 108-115.

van der Linden, D., Davidson, B. I., & Zamansky, A. (2019, November). The not so secret life of

pets: pet owners' privacy concerns for pet location data. In Proceedings of the Sixth International

Conference on Animal-Computer Interaction (pp. 1-6).

12.1

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Index of comments

2.1 Why are you showing this data? What is the relevance to the Australian industry? Importantly, what is your
definition of the pet wearable technology industry. What pets does it cover and what technology does a cover?

2.2 Your heading is Australian pet wearable industry but the data is global. How about trying to work out what
proportion of this relates to Australia? E.g. Compare no. of pets per household? Compare pet expenditure levels,
then determine an Aus industry figure?

3.1 Growth rate off what base?

3.2 Supposition. No evidence.

3.3 Source of info?

3.4 How is this helping the client gain a greater understanding of the dynamics of the Australian pet wearable
technology industry? Is there any evidence to support any of this material?

3.5 Where is your industry map?

4.1 This is theoretical info. Where is the application to the industry?

Who are the suppliers? What raw materials and component parts do they provide to the manufacturers?
Who are the manufacturers (competition)? Where are they based?
What kind of wholesalers and retailers sell these products?
Are all pet owners alike? Are there different segments?

4.2 What's happening in australia?

4.3 You're asked to present a map of the micro environment. There was a level of detail required that showed the major
players within the industry and the relationship between them. You are seeking to give the client a detailed overview
of the dynamics of this industry. Please refer to the notes. I can also see from the activity logs that you have not
looked at the resources for completing this assessment all the assignment one discussion forum. This may explain
the shortfall in what has been presented. David

5.1 Are these devices suitable for all pets?

6.1 Research support?

How does this relate to what's happening in Australia?

6.2 As per the notes and assignment when discussion forum insights and recommendations are for report number
three.

7.1 Source of info?

Aus figures?

8.1 Don't explain theory in a business report - just apply it.

9.1 Research support?

Examples? What political action is helping this?

9.2 Research support?

Specific examples of what's happening?

9.3 Trend data? Give examples of how you know this is happening? Which pet owners are embracing this technology?

10.1 Research support and examples? Are legal requirements increasing?

10.2 Research support? Trends?

 Index of comments

11.1 There is little in this section that offers specific trend information on the industry. Why have you not applied it to the
theory? Where are your research facts? Where are your charts showing trends?
For example:
Pol: China - Aus trade relations and the impact on access to manufacturing plants in China? COVID lockdown rules
and the increased adoption of pets?
Eco: Exchange rate on imported goods? Fluctuations on disposable income affecting expenditure on pets?
Soc: Increased interest in using helath tracking devices carried across to their pets? 'Humanisation' trends in caring
for pets?
etc.

12.1 Correctly formatted references but they are a poor choice. Apply SCRAPE theory to evaluate their worth. Also, too
few references used.

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