PESTLE Analysis

Question 1

Political Factors

Answer 1

Regulatory Environment (Food and Safety labeling requirements ; affect marketing and operations. Issues with labeling can have an affect on the overall brand and marketing position)

Question 2

Economic Factors

Answer 2

1. Market Growth and Competition (Market expected to reach $100 bil by 2034, promising growth potential for BM but also allows for greater competition that can challenge BM’s pricing strategy and overall profitability)
2. Cost of Production (Pea Protein is costly ; less established supply chain than those in animal protein, this can create a reliance on few suppliers; increased supplier costs, risk of disruptions)

Question 3

Social Factors

Answer 3

1. Shifting Customer Preferences (Health and sustainability concerns are driving consumers to plant based diets, BM aligns well with this shift in consumer habits)
2. Celebrity Influence (Leo DiCaprio and Snoop Dogg endorsed the product, helps boost brand visibility and enhance brand loyalty)

Question 4

Technological Factors

Answer 4

1. R+D and Innovation (BM puts and emphasis on R+D, allows company to continually improve their product and maintain a competitive edge. This continuous innovation is essential among rising competition)
2. Manufacturing Constraints (Proprietary process for creating their product is crucial for quality, this leads to scalability challenges as demand sometimes exceeds capacity of the process)

Question 5

Legal Factors

Answer 5

1. Intellectual Property ( Unique product blend and process are central to BM’s competitive strategy, competitors could eventually replicate aspects of the formula, threatening BM’s market position)
2. Compliance with food standards (food industry requires a strict adherence to safety and quality standards. Because BM has reliance on a third party co-manufacturer, there is additional risk in this aspect and any safety or quality issue could harm their reputation.)

Question 6

Environmental Factors

Answer 6

1. Sustainability (BM offers a more sustainable product than traditional meat, using much less water and GHG emissions, this environmental benefit aligns well with their brand and their target demographic)
2. Supply Chain Vulnerabilities ( Limited supplier base for ingredients, exposing them to supply risks from natural disasters or other disruptions, could affect product continuity and costs)

Question 7

What does the PESTLE analysis tell us about Beyond Meat?

Answer 7

Beyond meat has significant opportunities due to their environmental benefits and changing consumer preferences, the challenges come from the high production cost, intense competition and potential vulnerabilities within the supply chain.