PEST Analysis:

Political factors: The political factors have a huge influence upon the regulation of business. In

Pakistan political environment is not stable. It is very dynamic which affects the business

industries. Government policies are changed during regular intervals of time. This political

instability affects the tiles industry also. In case of Ceramics Industry when the incident of

Benazir Bhutto’s death happen. Then during that time their material was destroyed by the

political workers. Their vehicles were destroyed when they were on the road for distributing the

final product. So due to this political incident Ceramics Industry bears a financial loss.

Government also has some rules and regulation for the environment pollution. Ceramics Industry

claims that they do not pollute the environment during the manufacturing process of the tiles.

The wastage is managed in sophisticated manner that it does not pollute the environment. In

Ceramics Industry master tiles is the first tile manufacturer in Pakistan which submits the

application to National Tariff Commission against the dumping of Chinese tiles manufacturers.

The result was that Government imposed anti dumping duties on Chinese tiles which also shows

that Government wants to promote and save its local Tiles industry.

Economical Factors: Marketers need to consider the state of a trading economy in the short and

long terms. Due to economic growth in Pakistan the Tiles industry in Pakistan is growing. There

is a big increase in the construction in the country. The Tiles industry in Pakistan is in growth

stage. Government does not finance enough money in the Tiles industry to make it more

attractive industry. The raw material which is used in Tiles manufacturing is founded in the

province on NWFP and Balochistan. Mining of the raw material in these areas is done on

primitive techniques including uncontrolled blasts. In majority of the mines basic machinery and

equipments are not available. This not only lead to wastage but also to low production of raw

material which directly affects the Tiles industry. Government does not pay much attention on

this which really affects the efficiency of Tiles industry.

Socio cultural Factors: The social and cultural influence on business varies from country to

country. It is very important these factors are considered. These factors are: (1) Income level (2)

Population growth rate (3) Labor mobility (4) Life style changes (5) Fashion (6) Living condition

In Pakistan demographic factors like income level of people is increasing. Due to which their

buying power increases. Also the population is increasing which results in the construction

increase which also results in the increase in demand of tiles in the country. Also there is a good

availability of labor which is a really favorable condition for tile industry. Now the people in

Pakistan are moving towards change. Their life style is changing. Now it is becoming a fashion

to decorate their homes with beautiful and stylish tiles to give a beautiful look to their homes.

This result is the increase in the demand of tiles in country. The living condition of people is

changing. The rural people are moving towards urbanization and their living conditions are

becoming better and better.

Technological Factors: Technology is a very important factor for an industry. It is vital for

competitive advantage for a firm. For technology the following points should be considered:

(1) Does technology allows products to be made cheaply and better quality? Ans: In Pakistan the

technology in Tiles industry does not change very quickly. In Ceramics Industry they use their

Italian manufacturing plant for producing good quality products at affordable prices. This

technology is their competitive advantage. (2) Does technology offers consumers and businesses

more innovative products? Ans: Ceramics Industry use their new technological plant to produce

more innovative products. Ceramics Industry produce new styles with lot of colors and they

produce more innovative products. (3) Does technology offers companies a new way to

communicate with consumers? Ans: Technology changes in the media industry in Pakistan allow

the companies to adopt the new ways of communication with the customers. Now there are new

and advanced medium for communicating the message like digital signboards and now

advertisement can be done through new cable channels. These new local cable channel are

watched everywhere. So we can say that new technology offers new and affective ways of

communication.