Challenges And Porter's Force Analysis Of Sugar Manufacturing Industry In Uganda

Sugar Manufacturing industry

Political

· Bureaucracy as well as corruption in the country affect the business and the industry.

· There is presence of bad trust of the public on the business organization as well as overall political along with the economic structure in the country which affect the business (Cuesta et al. 2020).

· The organizations operating in the industry must identify the political help that is being provided by parties in the company.

· The companies operating in the industry must also create a robust policy by the help of which it will be possible to avoid any kind of corruption in the workplace.

Economical

The recent covid-19 pandemic along with subsequent lockdown has prevented the improvement of the economy of Uganda which has equally affected all the companies in the industry (Cuesta et al. 2020).

Proper marketing strategy along with identification of the different trains in the market and the expectations of the customers need to be taken into account in order to overcome this problem by the company.

Social

The unemployment rate is 2.48 percent of the youth population that is currently associated with the country with cordially affect the companies in the industry of sugarcane manufacturing in terms of having optimum number of employees (Statista 2022).

To cope up with this problem it is essential for the companies in the industry to provide attractive salary to the employee as well as providing them with optimum training in order to improve their level of efficiency.

Technological

Lack of optimum technology in the industry due to the lack of economic growth has impacted the production of sugar in the industry.

In order to cope up with this problem, it will be a viable option for the company to identify innovative process by the help of which it will be possible to utilize technological advancement in order to improve production.

Legal

Adequate legal laws are not currently associated with the production of sugar in the country.

Company yet to come up with different policies that can be implemented in the workplace in order to continue work in a systematic and productive way.

Environmental

Intensive utilization of water as well as loss of natural habitats are some of the current problems that are associated with the sugar production industry in Uganda (Nalukwago 2019). This actively impact the companies in the industry as the companies are not capable of taking care of the surrounding environment which impact the corporate social responsibility of the company.

In order to fight with this problem, sustainable policies need to be implemented by the company that are currently associated with the industry.

Porter’s force

Strength

Justification

Industry rivalry

High

There is presence of many top competitors in the sugar manufacturing industry in Uganda. Companies like Kakira Sugar, Kinyara Sugar Works Limited, sugar corporation of Uganda Limited and Sugar & Allied industries Limited are some of the major companies that occupy the maximum percentage of the market share in the sugar manufacturing industry (Asio 2019). The presence of too many competitors in the market make the competitive rivalry high in nature.

Bargaining power of suppliers

High

There is presence of many sugarcanes supplier in the market for sugar industry. Many major suppliers in the country are capable of exporting their product to different countries which provides them with an opportunity to exemplify more profit from the existing companies in the sugar manufacturing industry in Uganda (Tridge 2022). Which the current power that is invested among the suppliers it can be stated that the bargaining power of suppliers is quite high in the industry.

Threat of substitutes

Low

There is currently absence of any kind of product that might substitute utilization of sugar in Uganda. Under this context the threat of substitute product in the market of sugar mill factory industry is low.

Bargaining power of buyers

Medium

With the presence of so many companies in the sugar manufacturing industry in Uganda the bargaining power of the buyer is medium in nature. Reason for the bargaining power of buyers being medium in nature is because the quality of the product and the maximum market share is associated with Kakira Sugar company (Asio 2019).

Threat of new entrants

Low

Sugar manufacturing industry in Uganda is already associated with top companies and the market is shared between on the top companies that are associated with the country. There is various investment that need to be implemented in order to start a new company. With all the different types of hurdles that are currently present, the threat of new entrants in the country is very low for the company.

Stage in the industry life cycle

Growth

Implications

There is room for the company to improve in the future with the current economic improvement in the country. The company must utilise technological advancement in order to expand its market and future profitability.