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In UK the dairy industry is growing to a greater extent as they are having expertise for processing and distributing with the dairy products. They are known for there freshly pasteurised milk which is healthy for the humans (Gould, 2012). Thus, the industry highly focuses on the developing with high standards of production and coming up with new products to be served. Further, in this report detailed analysis of dairy industry is been done which assist includes the determination of competitive challenges and the opportunities which are faced by the industry.

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Macro-environment factors

PESTLE Analysis

It is an efficient model which is highly been used to evaluate the external factors which have a great influence on the operations of the dairy industry. Further, this industry is a sub-set of agricultural industry which means it involves the activities such as production, sale of milk products such as cheese, milk, cream, cheese etc. which provides with high satisfaction level to the customers. Further, there are number of factors which affects the dairy industry. Thus, following factors are as follows:

Micro-environmental factors

Porter's five forces

It is an important model which is used to analyse the different parameters of the industry which assist in developing the strategy for the business. Thus, under this there are mainly five factors which which affects the dairy industry. The following are been determined as under:


From the above report it can be concluded that the dairy industry is growing with the time but the needs and preferences of the people are changing on the regular basis. Thus, it becomes important for the organizations to evaluate there demands and develop with the products accordingly. Further, the micro as well as macro environmental factors have a great impact on the operations and sales of the dairy industry.


By developing with the proper analysis of the market it is been recommended that the dairy industry must evaluate the different factors which mainly includes the micro and macro before developing with the strategies of the organization. Moreover, the policies which are followed by the competitors must also to be seen on regular basis so as to maintain image in the market. Further, they must evaluate with the opportunities which will help them to grow the industry to a greater level.


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