Micro-environment analysis of AVICENTRA, s.r.o

The bachelor’s thesis is based on the idea that the state of competition and industry within which the company competes are the key factors that influence its profits. The primary aim of this thesis is to predict the future development of the pet food industry in the Czech Republic in the five following years and to identify opportunities and threats for the company which are a result of the current and future condition of the micro-environment. The secondary aim then is to evaluate the industry situation among other European countries and state a recommendation which foreign markets would potentially be suitable for the expansion of AVICENTRA, s.r.o. In the theoretical part, there are introduced tools of an industry and competition analysis, such as industry life cycle analysis, determination of its structure and concentration level, strategic group mapping but most importantly the Five Competitive Forces framework and other related theoretical concepts. By applying the described methods on the Czech pet food industry, gradually 18 opportunities and 10 threats were identified as emerging from the company’s micro-environment. The wide-spread humanization trend was assessed as the strongest driving force of this industry and the main opportunity for the firm. As for the European pet food situation, the markets of Germany and Austria were suggested as the most convenient markets for the first company’s expansion, on the basis of chosen criteria which were the sales of other pet food industry per one inhabitant of the country and the popularity of bird and small mammal segments.