Industry Analysis Overview
The main objective of industrial analysis is to assess the prospects of various industrial groupings. At any stage in the economy there are some industries which are growing while others are declining, the performance of companies will depend among other things upon the state of the industry as a whole and the economy. If the industry is prosperous, the companies within the company may also be prosperous although a few may be in bad shape. The share price of the company is empirically found to depend up to 50% on the performance of the industry and economy.
To analyze the industrial performance one should follow the three steps.
* Industry life cycle analysis
* Study of structure & characteristics of an industry * SWOT analysis
Ice Cream Industry Profile
The ice cream in Pakistan is in many ways, reflective of the overall population distribution. The country’s population is primarily rural with approximately 65% of the population in villages and 35% of the population live in urban areas of Pakistan. . A dominant market share of 52% is with the unbranded ice cream vendors and artisans which is mainly due to low per capita income. The remaining 48% of the market share is divided among 5 major companies. It was once considered a sophisticated item of food is now becoming increasingly popular among the people Ice cream or ice-cream is a frozen dessert usually made from dairy products, such as milk and cream, and often combined with fruits or other ingredients and flavors. Most varieties contain sugar, although some are made with other sweeteners. In some cases, artificial flavorings and colorings are used in addition to (or in replacement of) the natural ingredients. This mixture is stirred slowly while cooling to prevent large ice crystals from forming; the result is a smoothly textured ice cream. The meaning of the term ice cream varies from one country to another. Terms like frozen custard, frozen yogurt, sorbert, gelato and others are used to distinguish different varieties and styles. In some countries, like the USA, the term ice cream applies only to a specific variety, and their governments regulate the commercial use of all these terms based on quantities of ingredients. In others, like Italy and Argentina, one word is used for all the variants. Alternatives made from soy milk, rice milk, and goat milk are available for those who are lactose intolerant or have an allergy to dairy protein, or in the case of soy milk for those who want to avoid animal products.
The overall picture of ice cream industry in Pakistan is not encouraging. Ice cream industry itself is growing with a reasonable rate of 2% annually. As the Pakistani nation have a tendency to follow others to the maximum extend and Pakistan is a nation with a tendency to get influenced by others and especially by western communities therefore ice cream in Pakistan is categorized as fast food, which is a symbol of western community, so we can very well imagine that ice cream is gaining its popularity especially in urban areas. As discussed above that about 48% of the ice cream industry is included in the organized sector and the more serious challenge comes from top five firms; Walls, Omore, Yummy, Hico Igloo, Gourmet and Rocco. These top firms dominate the market and essentially control the organized market. Pakistan has a branded ice cream of about 60 million liters per annum at a cost of about rs.8 billion. Among the above mentioned firms walls is serving as market leader and has the highest market share and Omore is serving as market challenger with the second highest market share. On the other hand Yummy, Hico, Gourmet and igloo are the market followers and Rocco as a market nicher. The market share of these companies can be seen in the below chart:
Top ice cream industries list
Brief Analysis of ice...
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