Strategic Management

Strategic recommendation for Oatly Group AB

Student Names:
Emma Crouch (10606976)
Jasmina Longhin (10602784)
Ronja Busch (10605640)
Florian Sell (10603441)
Philipp Kaminski-Noelle (10603510)

Module Code: B8MN116

Module Title: Strategic Management

Lecturer: Martin O´Dea

Submission Date: 17.04.2022

I
Table of Content
List of Abbreviations ..............................................................................................................III
List of Tables ........................................................................................................................ IV
List of Figures ....................................................................................................................... IV
1. Introduction ..................................................................................................................... 1
2. External Analysis............................................................................................................. 1
2.1 PESTEL-Framework .................................................................................................... 1
2.2 Scenarios ..................................................................................................................... 7
3. Internal Analysis .............................................................................................................. 9
3.1 Five Forces Framework ............................................................................................... 9
3.2 Strategic Capabilities ..................................................................................................13
3.3 Strategic Purpose .......................................................................................................18
3.4 Culture and Strategy ...................................................................................................21
4. Future strategic Recommendations for Oatly AB ........................................................22
5. Conclusion ......................................................................................................................24
Reference list .......................................................................................................................25
Appendix ..............................................................................................................................30

II
List of Abbreviations
APAC Asia Pacific
CAGR Compound Annual Growth rate
CEO Chief Executive Officer
EBITDA Earnings Before Interests, Taxes, Depreciation and Amortisation
ECB European Central Bank
EEOC Equal Employment Opportunity Commission
ELA Employment Law Alliance
EMEA Europe, Middle East and Africa
EU European Union
FDA Food and Drug Administration
IATA international air transport association
IPO initial pricing offering
R&D Research & Development
SBU Strategic Business Unit
UN United Nations

III
List of Tables
Table 1: Identify Key Drivers ................................................................................................. 5
Table 2: Define Scope .......................................................................................................... 6
Table 3: Resources competences .......................................................................................14
Table 4: Threshold and distinctive capabilities .....................................................................15
Table 5: Capabilities ............................................................................................................16
Table 6: Benchmarking between oat milk producers ...........................................................18
Table 7: SWOT-Analyse ......................................................................................................19
Table 8: TOWS-Analyse ......................................................................................................19

List of Figures
Figure 1: Covid-19 Restrictions ............................................................................................ 7
Figure 2: Oat milk market ..................................................................................................... 9
Figure 3: Comparative industry structure analysis ...............................................................10
Figure 4: Value net ..............................................................................................................11
Figure 5: Strategy Canvas ...................................................................................................12

IV
1. Introduction
Oatly Group AB is the world's largest oat milk company, which was founded 1990 by the sib-
lings Rickard and Björn Öste built on the idea of change (Oatly, 2022). Since then, the company
is focused on developing expertise around oats and sees their products as a global power
suited for sustainability and human health. Their goal is to unlock the breadth of the dairy
industry by selling several alternative plant-based products. Oatly's headquarter is based in
Malmö, Sweden, and is available in more than 20 countries. Oatly Group AB made its initial
public offering (IPO) on 20th March 2021, after pricing its IPO at $17 a share (Lucas, 2020).
The current challenge, which is to be discussed in more detail with the help of this report, is
that despite the high increase in revenue, particularly in the third quarter of 2021, the Earnings
Before Interests, Taxes, Depreciation and Amortisation (EBITDA) margin has fallen further into
negative territory. The causes and correlations are examined and described in more detail in
the following paper. In addition, a strategic recommendation from our side is listed so that Oatly
Group AB can be seen as a leading dairy alternative for consumers in the long term. In the
process includes increasing brand awareness, entering new markets, increasing sales, in-
creasing margins and expanding the product range (Oatly, 2021).

2. External Analysis
2.1 PESTEL-Framework
Political Factors
The impact of political factors can greatly affect Oatly Group AB's growth, prices, sales and
profits depending on the trade zone.
One key challenge is the variety of taxes in the different trade zones. On the consumer side,
the spread of the value-added taxes is quite big and entails inequalities between the sale coun-
tries. For example, the value added tax in Germany is 19% in comparison to Sweden with
25%, in China 16% (IHK Pfalz International, 2022) and in the USA it is taxed differently de-
pending on the state (KPMG, 2018). Furthermore, there are different taxes within one country
as well. In Germany, for example, cow's milk is only taxed at 7%, as it is considered a staple
food (German Sales Tax Law), whereas oat milk is taxed at 19%. These differences have an
influence on the buying behaviour of the consumers as well as the price structure of the prod-
ucts and thus the growth and profits of the Oatly Group AB.
On the company side, even though Oatly has its own production facilities within the free trade
zones, oats are still imported from Europe. Resulting from these taxes are due on exports in
the foreign markets of China and the USA. For instance, an import duty must be paid on oats
that Oatly exports in order to maintain quality standards. According to current sales figures,
the global minimum tax does not yet apply to Oatly (Federal Ministry of Finance Germany,
2020). Therefore, the different corporate taxes the individual country applies. One political
booster could be the confirmed 1.5-degree ambition of the Paris agreement until 2030 (Paris
agreement, 2015). This decision brings new guidelines regarding climate policy nearly all over
the world and could provide a basis for the expansion of more sustainable crop milk.
One of the most political risks is the increasing interest rate policy of the Federal Reserve
Bank, European Central Bank and the Central Bank of China, which will be explained in the
economic factors. Additionally, the actual conflict between Russia and the Ukraine could have
an immense impact on the sales figures, especially on the Asian trade zone.

1
Economic Factors
The Covid-19 pandemic has left a significant impact on the global economy over the past two
years (World Health Organization, 2021). Despite recoveries in Europe, the USA and despite
growth in China, retailers and the tourism industry are still the most affected (Deloitte, 2021).
The restrictions and different regulations in different countries mean that Oatly's sales of milk
substitutes to the hospitality industry cannot be maximised.
The USA is the country with the largest gross domestic product in the world, followed by China
(Urmersbach, 2022). Both countries are already fixtures in Oatly's expansion. Nevertheless,
the Asian region around China in particular will be an important sales market for the Swedish
company in the future due to its very strong growth. With a rising inflation rate (7.2 %), food in
particular has become more expensive (OECD, 2022). The price of oats has increased by 90%
in 2021, which means that the cost of producing Oatly products is increasing more and more,
and ultimately the margin is lower (Trading Economics, 2022).
With inflation on the rise, the European Central Bank (ECB) has several options to respond.
Currently, the ECB is still pursuing a zero-interest rate policy. Nevertheless, the ECB does not
rule out raising the key interest rate to counteract rising inflation. Raising the interest rate
causes money to become more expensive, which ultimately leads to a shortage of money. In
macroeconomic terms, lowering the key interest rate leads to a cooling of the economy and a
drop in the inflation rate. The savings rate increases, and the investment rate decreases (Eu-
ropean Central Bank, 2022b). For Oatly AB, borrowing becomes more expensive. On the other
hand, interest-bearing investments become more lucrative and the bond business on the stock
market becomes less attractive. Thus, private consumers would rather invest in fixed-interest
bonds than in Oatly shares.
Likewise, a rising key interest rate has an impact on the export situation and currency (Euro-
pean Central Bank, 2022a). There may also be consequences for the exchange rate. When
ECB interest rates are high, the euro becomes more attractive to foreign investors and the
value of the euro increases. At the same time, products from the euro zone are more expensive
and demand for them decreases (Federal Ministry of Finance Germany, 2022). Thus, exports
of oat products tend to decrease.
Disposable personal income seems to be increasing in Europe (Eurostat, 2019). Nevertheless,
this is due to the top 10 % of the most countries (Statista, 2021). The gap between rich and
poor is widening, increasing the money problems of non-wealthy households. The selling price
of the oat milk supplier is higher than the average price of ordinary milk, making it less afford-
able.

Socio-Cultural Factors
Socially, Oatly’s sales have increased because of the changing in lifestyle and culture.
The culture changes in the United States have affected the increase of Oatly sales. People in
the US have started turning to plant-based options for dairy products because of lactose intol-
erance, veganism, and environmental concerns, which have all been a cause of many lifestyle
changes in the culture of the United States. In the European Union, there is a large wave of
vegans occurring. According to Statista, in some major countries in Europe, veganism is any-
where from 2%-5%, and vegetarianism is ranging from 4%-11% of the population (Nils-Gerrit
Wunsch, 2022). In Asia, lactose intolerance affects a large number of people in their popula-
tion. This is why Oatly’s sales are rising in Asia, due to people having to use a dairy substitute

2
for their health. In an article by Nextshark, it stated that in some Asian communities, lactose
intolerance can be as high as over 90% of the population (General, 2019).

Technical Factors
Regarding technological factors, the assignment will focus on the market’s supply chains,
transportation infrastructure, and energy supplies. Oatly has three factories on three conti-
nents: Europe, America, and Asia. Oats are being harvested in Canada, the U.S., and Sweden.
Therefore, the supply chain and transport routes are short when looking at Europe and North
America. However, the distribution to the Asian market is expensive and not sustainable re-
garding emissions. When shipping oats to Asia from either North America or Europe, custom
regulations must be observed. The European Union (EU) regulations on the other hand assure
that goods can be traded and transported freely within the EU member states. To the five main
transport types count pipeline transport, inland water transport, maritime shipping, road haul-
age, and air transportation. The policy of air transportation handling is determined internation-
́ ransport business lexicon ,́ no date).
ally by the international air transport association (IATA) ( T
The transport policy for the EU helps keep the European economy moving by developing a
modern infrastructure network (European Union, no date). The modern infrastructure in Europe
allows Oatly to settle its transactions quickly and securely. Looking at the transport aspect of
North America, Canada has increased investments in transport infrastructure to still assure a
modern way of transportation ( N ́ orth American transport infrastructure ,́ 2019). That counts for
the Asian region, too. Government initiatives in China help with infrastructure development
(Ǵ overnment initiatives in infrastructure development ,́ 2016). That also has a positive impact
on Oatly’s product transportation. When it comes to energy supplies in Europe, you can high-
light that the energy mix is mainly made up of five different sources: crude oil, natural gas,
renewable energy, nuclear energy, and solid fossil fuels. An increase in renewable energy
sources can be registered ( E ́ nergy production and imports ,́ no date). This increase has a
positive impact on Oatly’s goals towards using 100% green energy. In the following, you see
the total energy supply of North America ( T ́ otal energy supply ,́ no date).
The North American market is not as focused on renewable energy sources as Europe. Thus,
Oatly has difficulties reaching its goal to create its products with only renewable sources (Oatly,
2020). In Southeast Asia, coal-fired generation has been expanding. However, greater em-
phasis is now being placed on the expansion of renewable sources ( D ́ evelopments in South-
east Asia ,́ 2020). That will support Oatly, again, in achieving its goals towards using 100%
renewable energy sources.

Environmental Factors
The EU has some of the world´s highest environmental standards (EUR-Lex, no date). The
EU policy protects the environment and seeks to minimise risks to climate, human health, and
biodiversity. There are some regulations that need to be followed by Oatly, united by different
contracts.
For example, the European Green Deal aims to make Europe the world’s first climate-neutral
continent, in part by developing cleaner sources of energy and green technologies (Eu-
ropäische Kommission, no date). Furthermore, the United Nations (UN) Framework Conven-
tion on Climate Change, which is an international environmental agreement that aims to slow
global warming and mitigate its effects (unfccc, 13.02.2022). In addition, the Paris Climate

3
Agreement, which involves 196 countries and the EU, aims to slow climate change and miti-
gate its effects by limiting global warming to well below two degrees Celsius (Europäische
Kommission, no date).
When it comes to energy consumption, Sweden has a total consumption of 133.50 billion kWh
of electrical energy per year. The country is fully self-sufficient in energy. The total electricity
production is 153 billion kWh. This corresponds to 115% of the country's own needs. Sweden
is considered a prime example for the implementation of the reduction of CO2 emissions. (Län-
derdaten.info, not date). One reason for this could be that Sweden has the highest CO2 tax
rate in Europe. The price is currently around 118 euros per ton of CO2. This is an incentive for
Oatly to produce with low CO2 emissions in order to save costs.
Regarding the waste disposal and recycling, Sweden is pursuing the goal of "zero waste", a
transition from recycling to reuse. A tax reform for cheaper repairs for used items facilitated
the start of the transition (Sweden.se, not date). Transferred to Oatly, it means producing pack-
aging that can no longer just be recycled but also reused.

Legal Factors
The Swedish competition laws and the EU ś competition rules include the prohibition against
anti-competitive cooperation between undertakings and prohibition against the exploitation of
market power by undertakings in a dominant position (Swedish competition authority, no
date).
When it comes to employment law, the assignment has a look at working hours, minimum
wages, and family-friendly leave, among others. The Equal Employment Opportunity Commis-
sion (EEOC) regulates those topics in the U.S. and enforces federal laws prohibiting employ-
ment discrimination. These laws protect employees and job applicants against harassment,
discrimination, and unfair treatment in the workplace by anyone (USA gov., no date). Only
businesses with more than 15 employees must follow the EEOC laws. Because Oatly regis-
tered 310 employees in 2020, according to Statista, Oatly’s base in North America must follow
those laws, too (Ridder, 2021). When it comes to the Asia Pacific (APAC) market, almost all
employers from 18 countries in the Asia Pacific region have problems regarding employment
law. From 32 problems listed in a report, prepared by 18 APAC members of the Employment
Law Alliance (ELA) the number one issue faced by 11 countries is fixed/non-fixed term con-
tracts and independent contractors ( 1 ́ 0 Top Employment law issues in Asia Pacific ,́ 2018).
Oatly needs to ensure that all employees work under appropriate working conditions to main-
tain their company values. Looking at the Europe, Middle East and Africa (EMEA) market, EU
employment law protects the rights of workers across the EU. Areas covered by EU law include
protection from discrimination, the protection of pregnant workers, and equal pay rights, among
many others (Clyde&Co, no date). Since Sweden is a member state of the EU, they must follow
the EU employment law, as well as Oatly AB.
When looking at trading and transporting goods from one country to another you must observe
import authorizations and import licences. The EU licence, or the EU Community licence, en-
titles the holder to transport goods nationally and internationally in countries of the European
Union (EU-Lizenz, no date). However, as soon as the goods cross the borders of the EU,
customs regulations must be observed. Imports into the USA are also subject to a complex set
of customs regulations as well as regulations from other authorities that must be observed
(Krause, 2015). When looking at the Asian market, the Chinese Ministry of Commerce is mak-
ing it easier to apply for import and export licences to support the fight against Covid-19 (Mö-
bius, no date).

4
Identify Key Drivers

Key Driver PESTEL-Factor

Increasing Inflation Rate Economical

Increasing Interest Rate Economical

Rising raw materials (oat) Economical

costs

Paris Agreement Environmental / Political

Social Trend Socio-Cultural

Taxes Political

Table 1: Identify Key Drivers

Source: self-created

Key Drivers
Increasing Inflation Rate
The rising inflation rate worldwide, especially that in the USA and Europe, is making money
worth less and less, making products more expensive (OECD, 2022). This makes production
and transaction costs more expensive for Oatly.

Increasing Interest Rate

Raising the interest rate through the ECB causes money to become more expensive, which
ultimately leads to a shortage of money (European Central Bank, 2022b). For Oatly AB, bor-
rowing becomes more expensive. On the other hand, interest-bearing investments become
more lucrative and the bond business on the stock market becomes less attractive. Thus, pri-
vate consumers would rather invest in fixed-interest bonds than in Oatly shares.

Rising raw materials (oat) costs

Increased inflation also has the effect of making oat more expensive. The price of oats has
increased by 90% in 2021, which means that the cost of producing Oatly products is increasing
more and more, and ultimately the margin is lower (Trading Economics, 2022). Due to the
already high retail price, the price can actually no longer be raised to keep up with the compe-
tition.

Paris Agreement
The Paris Agreement is a legally binding international treaty on climate change. Its goal is to
limit global warming to well below 2, preferably to 1.5 degrees Celsius, compared to pre-indus-
trial levels (United Nations, 2022a). The values of Oatly AB have reflected sustainable and
5
conscious thinking since its foundation. Nevertheless, the company should constantly question
its products and develop them efficiently in order to avoid possible penalties in the future.

Social Trend
Veganism and especially conscious nutrition are shaping Generation Z. The older population
is also dealing with the issue more and more and trying to maintain animal welfare (Schroeder,
2019). This trend is a huge opportunity for Oatly AB to steadily win over customers.

Taxes
The different taxation in different countries makes the selling price of alternative products dif-
ferent around the world. A general reduction in taxation for alternative products to milk would
reduce the selling price and thus appear more attractive to customers.

Define Scope

Industry Retail,
Hospitality Industry

Region USA, EMEA & Asia

Years Five Years

Table 2: Define Scope

Source: self-created

6
2.2 Scenarios
The Covid-19 Pandemic
Since the beginning of the Covid-19 crisis in 2020, a thread of challenges has been running
through the whole world (ZHU, 2020, pp. 727-733). Everyone is affected and has to adapt
individually to their new situation. Every industry is confronted with the crisis in some way.

Figure 1: Covid-19 Restrictions

Source: (FRONTEX, 2020)

The figure above shows the measures taken by each European country to contain the Covid-
19 pandemic. Many restrictions and bans were imposed regarding mobility, so people did not
travel but stayed at home. Two years later, in 2022, Corona is still a part of the present and
will continue to occupy the world through more variants in the future.
For Oatly AB, this will mean that the company will have to continue to focus on retail sales or
for take-away business from the hospitality sector. As retail companies have already launched
their own oat milk products and will continue to do so, Oatly Ab's competitiveness will be put
under scrutiny. The retail companies and especially the discounters will score with low prices
in this area and thus have a clear advantage over Oatly AB, unless Oatly AB will work on its
pricing policy.

7
Putin’s War
Since Russia's invasion of Ukraine on 24 February 2022 and thus the breach of international
law by a war of aggression by Russian President Vladimir Putin, the consciousness of global
states has changed (Sangal, 2022). The motto of the European Union "change through trade"
has not prevailed. Many companies are therefore distancing themselves from Russian busi-
ness and its sympathisers. Nevertheless, Russia is a major exporter of raw materials such as
oil, gas and coal, which has made many countries dependent on the country (Armstrong,
2022).
Due to the current uncertain situation, raw materials are rising sharply. Oil in particular is be-
coming more and more expensive, causing the cost of transport to skyrocket (Sönnichsen,
2022). This affects the supply chains of the companies and especially those of Oatly AB, which
increases the production costs of the company. The situation of the Putin war and its further
course is unpredictable. Nevertheless, one thing is certain: that the world as we know it will no
longer be found in the future. There will be unknown restrictions on many companies, including
Oatly AB, in the near future in order not to escalate the war and to keep the peace in the future.

The Vegan Movement

Both the Covid-19 pandemic and the war of aggression in Ukraine are on the current agenda
and preoccupy people and businesses worldwide. Still, the issue that has been pushed into
the background by these events remains more important than ever: the global climate crisis.
Due to the preoccupation with unforeseen events, the fight against global climate change is
being pushed to the back burner (United Nations, 2022b). This makes the awareness of every
single person all more important. Sustainable nutrition is part of that awareness.
The trend for vegan alternative products is growing strongly, so that 44.2 billion US dollars are
budgeted for the international market in 2022. By 2030, it is assumed that the market will even
have doubled (Wunsch, 2022). Oatly AB will benefit from people's conscious consumption, so
that more people will eat and buy the products. However, the industry is not standing still. With
large sales expected in the next few years, many companies are sure to launch plant-based
products and compete with Oatly AB.

8
3. Internal Analysis
3.1 Five Forces Framework
An important model of competition research is Porter's five forces and includes Threat of New
Entry, Threat of Substitution, Buyer Power, Supplier Power, and Competitive Rivalry (Mind
Tools, no date).

The Threat of Entry

When talking about the threat of new entry, you can highlight that the oat milk market is esti-
mated to grow at a Compound Annual Growth rate (CAGR) of over 10.2 % between 2020 and
2026, as shown in the following (Global Market Insights, 2020):

Figure 2: Oat milk market

Source: Oat Milk Market Size and Share | Industry Statistics - 2026 (gminsights.com)

The market share of substitute drinks in the drinking milk segment is still below five % but the
niche is growing very strongly. According to Global Market Insights, oat can be easily grown
and is available all year round. However, according to Dr. Zinke, cultivation is not that easy
due to the requirement of certain qualities. This is because the quality criteria of the oat milk
producers, such as good nullability of a certain grain size, are high. Due to the easy cultivation
of oats, the product is economical and available all year round (Global Market Insights, 2020).
Therefore, the threat of new entries is high.

The Threat of Substitutes

The Threat of substitution is also high regarding the oat milk industry. Nowadays there are
many plant- based milk alternatives such as almond, soy, rice, coconut, and even hemp milk,
next to oat milk. This results from the increase in lactose intolerance, health benefits of plant-
based alternatives, or an alternative for dairy milk through animal and climate concerns
(Oakes, 2020).

9
The Bargaining Power of Buyers
Since Oatly is an everyday product, switching to the competition is possible at any time and
easily. Basically, this means that shoppers could squeeze the price. With that, the power of
buyers is high. There are many cheaper alternatives, but Oatly is convincing in terms of sus-
tainability, as the emissions label is clearly visible on the products (Schneider, 2021).

The Bargaining Power of Suppliers

The main ingredient in Oatly products is oats, much of which the company sources from Swe-
den and other EU countries such as Finland, Estonia, Latvia, and Lithuania. The strong in-
crease in demand from the food sector gives the suppliers a great deal of influence. Thus, the
power of suppliers is high. In addition, Oatly does not currently have its own oat production to
exert pressure itself. Wheat prices are currently fluctuating very strongly, and the trend is up-
wards. This is due to the uncertainties on the market (Dr. Zinke, 2022).

The Extent of rivalry Between Competitors

Basically, the global consumer demand for oat drinks is increasing and with it the market
growth of oat drinks ( O ́ at Drinks Market ,́ no date). This resulted in a high extent of rivalry
between competitors. Competition in the market is intensified above all by the Food and Drug
Administration (FDA) regulation in the USA, which obliges oat milk manufacturers to indicate
the concentration of natural sugar, fat and protein on the packaging (Global Market Insights,
2019). Manufacturers are encouraged to find organic solutions, which could initially limit the
competition to Oatly. Oatly stands out because of its organic production from 100% organic
oats, its credible mission, striking design and lifestyle as well as its radical ideas and contro-
versial slogans. In addition, the company has a very good social media presence, which makes
it difficult for competitors to get the same media attention and thus a large reach (Oatly, no
date).
How all of this looks in the comparative structure analysis net, is shown below:

Figure 3: Comparative industry structure analysis

Source: self-created

10
Types of Industries
If the different types of industries are considered, the perfectly competitive industry is looked
at in this case. As mentioned, the barriers to entry in this market are low and there are many
equal rivals each with very similar products e.g., different plant-based milk alternatives such
as almond milk etc.

Industry Stage
As mentioned in the point “threat of new market entry” in Porter ś five forces, the oat milk
industry is growing. Therefore, it is located at the Growth stage when looking at the industry
stages. It defines high growth, growth abilities, and low entry barriers. However, the next stage,
called Shake-out, can already be seen through increased competition and thus, higher rivalry.

Value Net

Figure 4: Value net

Source: self-created

To include the collaborative potential in an industry, the value net is being considered. Four
types of players are displayed in the value net:
When collaborating with them, one Organisation can create a more valuable market. It is im-
portant for a company’s success to involve its customers and suppliers and to communicate
properly. On the competitor side, it is helpful for achieving long-term business success by ac-
tively shaping the future of the industry together (De Bruin, 2018). For the oat milk industry,
this means merging with other milk alternatives to form a plant-based milk industry. With that,
these plant-based alternative groups have a better chance of counteracting the dairy industry
in general. A complementor for the oat milk industry could be the coffee industry because
customers use oat milk in their coffee e.g.

11
Market Segments
The key market segments for Oatly are demographic and psychographic. Oatly sees a lot of
buyers are young women, so they are trying to focus their attention on middle aged men, since
they are least likely to purchase milk substitutes (Rogers, 2021). Oatly focuses on psycho-
graphic segmentation because they are focusing on the people who are following more envi-
ronmentally conscious behaviours or have health issues.

Strategic Customers
Oatly’s strategic customer base is focused mainly at the younger women, ages 18-24. Oatly
also focuses on those who are lactose intolerant, which is about 68% of the population.
(Hughes, 2021). Oatly being a vegan milk substitute is also focusing on vegans and vegetari-
ans.

CSF
Oatly’s critical success factors are their humility and sustainability. Customers are driven to
Oatly because of their sustainable milk alternatives and their ability to humbly expose them-
selves to their customer base. Another factor is their humour. Oatly is known for their catchy
and witty slogans that draw customers in (Schroder, 2021).

Strategy Canvas

Figure 5: Strategy Canvas

Source: self-created

The reasoning behind using these two competitors of Oatly is that they both cover different
market segments of Oatly. Chobani covers the milk substitute and dairy segments, and Pepsi
covers the drink segment. In our research, we found that Pepsi had the lowest price, Chobani
had the highest after sales service, and Oatly had the lowest technical quality.

12
3.2 Strategic Capabilities
Resources competences (physical, financial, human)
Resources “What we have” Competences “What they do well”

Buildings: Physical Efficiency: Oatly aims to use raw ma-

terials and resources, like energy and
• Sweden: Landskrona, water, in the smartest and most effi-
• New Jersey: Millville cient ways possible.
• Netherlands: Vlissingen
Resource efficiency summary results
Raw materials: 2019:
• oats from Canada • Climate impact per litre produced
• water product: 0,48 g CO2e (+20%
• salt, oil, vitamins compared to 2018)
• Energy use per litre produced
Products:
product: 0.39 kWh (+8% com-
• oat drink pared to 2018)
• oat cuisine • Share of energy from renewable
• spread sources: 63% (-24 percentage
• ice points compared to 2018)
• Water use per litre produced
Patents: Oatly has six granted U.S. pa- product: 4.3 litres (-19% com-
tents. pared to 2018)

• Patent No. 7,160,564: covers a pro- Productivity:

cess for preparing a fermented
product selected from the group • 2019: oatly produced around 165
consisting of yoghourt, yoghourt million litres of product, 93% in-
drink, smoothie, crème fraiche, crease compared to 2018
sour cream and spread based on • 15 production partners in Swe-
an oat suspension free from soy den, Finland, the UK, Nether-
and dairy milk lands, Germany, Austria, the US,
• Patent No. 9,743,684: relates to a Canada account for 60% of their
process for preparing a liquid oat production/packaging
base or drink of improved soluble Marketing
oat protein content from an oats
material comprising starch and oat • Oatly highlight the product bene-
protein fits in a friendly, approachable
• Patent No. 2019/0110501: dis- tone
closes products with enhanced vis- • Oatly distinguishes itself by toss-
cosity by providing a mixture of de- ing aside the rules of marketing
amidated oat base and vegetable and takes a decidedly anti-mar-
protein isolate and crosslinking the keting approach to marketing.
glutamine and lysine units of the • The marketing is self-deprecating,
protein isolate by a transglutami- self-referential
nase enzyme • They are trying to be the opposite
• No. 2018/0213835: describes an of milk
oat-based vegetable health drink • Marketing has concise message
with potato protein or other vegeta- • Marketing doesn’t focus on selling
ble protein with a similar composi- products, but rather on initiating a
tion. bigger debate
• have an own jingle

13
Ability to raise external capital: Stock Financial Ability to raise funds: enter the
market revenue 1.4 billion dollars stock market to gain money for the fi-
cash flow: -213,832$ nancial advantage

Managerial talents: Human Motivate others and innovate: Oatly

aim to empower the plant-based
• CEO: Toni Petersson movement by
• Chief Information Officer and Exec-
utive Vice President Business 1. Drive a food system shift
Technology: Frederik Frimodig 2. set the example as a future com-
• Senior Director of Accounting, pany
North America: Joseph Lugo 3. Lead the charge to empower a
• Vice President International Com- plant-based revolution
munications and Culture: Heather
Projects, Initiatives:
Cooper
• Head of Marketing Dach: Saskia • silent barista
Scheibel • the race to grow the world's great-
• Executive Vice President Sales: est oat
Drew Martin • farmer seeking farmer
• stop plant-based censorship
Organisational culture:
• hey food industry
• value-driven and a lifestyle com- • resurrecting oats in the us
pany
• with kindness, openness, empathy
and trust Oatly foster an open, hon- Build relationships: Work they are
est, and collaborative work environ- doing and issues they care about,
ment Stories:
• guiding principles is to feel at
home, to be comfortable and have • project fearless
psychological safety • hey barista
• Ideals: respecting time, welcoming • black queer travel guide
failure, being fearless, and embrac- • climate change game
ing the unknown. • tiny pop up munich
• for purpose jobs
Managers:
• the activist grannies
• 54% men • food love
• 46% women (2020) • turn and flow
• project hiu
Employees: • akuko
• 792 in total • Nordic ocean watch
• 48% men How people gain and use experi-
• 52% women (2020) ence: The new normal & al Show: A
show that aims to advance a plant-
Partners: Farmers, Supplier, scientists
based society with puppets.
Suppliers: Oatly makes sure to work
together with partners who share their
values and vision for sustainability

Customers: restaurant owners, super-

markets, retailers, consumers, baristas,
cooks
Table 3: Resources competences
Source: self-created

14
Threshold, distinctive
Resources (what we have) Competences (what we do well)

Threshold Threshold Resources Threshold Competencies

capabilities
• Employees • Marketing
(Required to be able to • Suppliers of the raw mate- • Social Media presence with
compete in a market) rials hashtags
• Customers • Good change management
• Manufacturing space • management skills including dis-
• Offices and facilities tribution
• (Stock market)

Distinctive Distinctive Resources Distinctive Competencies

capabilities
• Image of Oatly • Research and Innovation compe-
(Required to achieve a • Unique background/his- tences
competitive advantage, tory • Marketing, no other known oat-
others cannot imitate, • Building-related laboratory milk brand that is doing market-
unique) which is designed to pro- ing like Oatly (tongue-in-cheek
mote innovation marketing)
• Investment in Research & • Early provider
Development (R&D) • Trustworthiness through trans-
• Brand Activism parency
• Brand messaging through
a video of the Chief Exec-
utive Officer (CEO) (jingle)

Table 4: Threshold and distinctive capabilities

Source: self-created

Redundant capabilities
A specific redundant capability has not been found.

Dynamic capabilities
Dynamic capabilities allow you to change and they are important indeed because everything
changes so fast. One of the dynamic capabilities of Oatly includes research and innovation
capabilities.
Through its history, Oatly has generally shown how to think and act innovatively and with new
research methods. Furthermore, Oatly announced in October 2021 plans to open a new re-
search and innovation centre at Lund University in Sweden to explore the potential of oats
more. With that, the company accelerates its mission. Over the next year, Oatly expects to add
approximately 30 new scientists to its global team based in Lund as well as to add nearly 100
researchers across its research hubs in Europe, the Americas, and Asia (Oatly, 2021). That
represents good and adaptable change management.
Stable financial capabilities are given here too. Oatly’s annual revenue increased approxi-
mately 53% year over year to USD 643 million (Nasdaq, 2022).

15
Core Competences
Mixture of a product range that fits with the trendy marketing and plant-based movement:

• Has a strong opinion: “we believe we should grow stuff to eat instead of growing stuff
to feed animals that we then eat.”
• The mission is to make it easier for people to eat better and live healthier lives without
recklessly taxing the planet’s resources in the process.
• Is a value-driven company with sustainability and nutritional health at the core
• Aims to contribute to a positive change in society
• Initiates a dairy free movement and having an active voice in the public debate and
being a driving force for the necessary change of the food system. For example: Oatly
is tating the carbon footprint of their products on the packaging. They think it should be
mandatory for all food producers to be held accountable to declare carbon footprint in
the same way nutritional values are declared.
• Does oats because they don’t know anything about alternatives

VRIN in a table
To continue the result of PESTEL analysis, it is important to know the key competitive ad-
vantages of the company and their ability, whether they are valuable, rare, inimitable and non-
substitutable. From the enumerated resources of the company, different impacts have
emerged. Based on these impacts, the company Oatly Group AB learns how important indi-
vidual factors are for the continuation of the company.

Is the capability …

Company’s resources Valua- rare? inimita- non- TOTAL

ble? ble? substitutable?

Strong Brand (great marketing) 10 8 10 8 36

Sustainability 10 8 8 5 31

Nutritional health 10 8 4 3 25

Variety of products 9 7 3 5 24

Great taste and texture of products 10 8 7 8 33

Strong global presence 10 4 5 4 23

Different patents 10 10 10 9 39

Initiatives (projects) 3 3 3 3 12

Table 5: Capabilities
Source: self-created

16
One of Oatly’s strongest advantages is the ownership of various patents that allow Oatly to
manufacture products with a high-quality standard. The impact on the competitive advantage
is sustainable. In addition, Oatly has a range of temporary competitive advantages. Two of
these advantages form facets of Oatly's core asset: sustainability and a strong external brand
impact with the help of marketing and design. If these advantages are maintained, they are
almost a guaranteed factor for future success. However, it must be noted that these are very
high in cost. More factors are the moderate variety, the great taste and texture of the products,
which are actually advantages, but only temporary, because companies quickly develop new
products based on the best of the market.
It turns out that Oatly Group AB has different strong advantages to compete in the market. The
key advantage is their different patterns on different enzymes which guarantee the high quality
of the products. The additional competitive advantages also support the market position of
Oatly, but these need to be continued and developed to save the actual market position. It
would be advisable to develop the more key advantages.

Organisational Knowledge
Organisation
As one of the largest oat milk companies in the world Oatly has a responsibility to stand for the
right values and to signalise the right impulses for others. For this reason, sustainability is one
of the core values and focus for Oatly. In addition to the fact of the reduced climate impact
caused by the processing of oats, Oatly also takes care to pollute the environment as little as
possible. For this reason, the exact consumption of electricity, water, packaging material and
CO2 impact per litre of oat milk is recorded. In addition to that Oatly pays attention to their
supply chain and suppliers, so they are able to guarantee the best quality and most sustainable
mode of operation. This is defined in the governance sheet, which also identifies trust and
health as the main characteristics of Oatly and proves to be the company's guiding principle.

Social
To fulfil its sustainability mission, Oatly needs the expertise of a diverse group of people who
feel they work in a safe, inclusive and supportive environment, are adequately compensated
for their work and are protected from discrimination of any kind. Oatly knows that their employ-
ees work best when they are celebrated for bringing their whole being to work. For this reason,
talent development is especially encouraged and employee performance is given special sup-
port. This is complemented by a work environment that knows no boundaries and is open to
diversity, equality and inclusion.

Human
To reinforce Oatly's core values, the company has established a Code of Conduct that defines
the company's behaviour toward its employees. This code is focused on the characteristics of
sustainability, health and trust, and prescribes certain guidelines that govern the behaviour of
the international company and its partners. These include, for example: no forced labor, no
child labor, no discrimination, working in a good environment, good pay, working hours, etc.
This Code of Conduct expresses the ethics of the company and it is essential for Oatly that all
employees, suppliers and partners respect it and act in accordance with it.

17
3.3 Strategic Purpose
Benchmarking
The following table provides a sector benchmarking analysis of Oatly AB, as the company has
many competitors. The four largest competitors besides Oatly AB were selected, which all
produce and distribute oat milk.
In total, the analysis was carried out with the help of seven performance indicators. It is evident
that Oatly AB is superior to the other companies especially in product variety, design and above
all taste. Nevertheless, their oat milk is the most expensive of all competitors in terms of sales.
Because of the added sugar (4.1g) it is also the sweetest drink of all products and thus perhaps
also hints at the most popular taste. In terms of sustainability, almost all companies can score
points. Still, oat milk is a very environmentally conscious product from the ground up, so they
try to make the packaging, production and supply chains sustainable accordingly.

Oatly Alpro Rise Brewing Happy Planet Chobani

(Danone) Co. Foods

Availability xxxxx xxxxx xxxxx xxxxx xxxxx

Price xxxxx xxxxx xxxxx xxxxx xxxxx

Product xxxxx xxxxx xxxxx xxxxx xxxxx

categories

Sustainability xxxxx xxxxx xxxxx xxxxx xxxxx

Design xxxxx xxxxx xxxxx xxxxx xxxxx

Taste xxxxx xxxxx xxxxx xxxxx xxxxx

Added Sugar xxxxx xxxxx xxxxx xxxxx xxxxx

Table 6: Benchmarking between oat milk producers

Source: self-created

18
SWOT-Analyse

Strengths Weaknesses Opportunities Threats

• Sustainability • Not much va- • The increasing • Emerging Competitors:

• Supporting or- riety in types need to vegan al- • Chobani
ganisations of products ternatives in the • Pepsi
that help make • Company Dairy market • Califia Farms
the world Cost • E.g., various types • Danone
greener. of cheese, heavy • Negative Press:
• Recyclable cream • Sold stakes to Donald
packaging • 68% of the world Trump in 2020, Trump is
• Popularity suffer with lactose against fighting Global
around the intolerance Warming and pulled the
world • Vegan Movement US out of the Paris Cli-
• Marketing • High Dominance in mate Agreement
Skills Global Market • High Price
• Vegan Prod- Segments
ucts
• Collaboration
with other
companies
Table 7: SWOT-Analyse
Source: self-created

TOWS-Analyse

TOWS Opportunities Threats

Analysis

Strengths • Use Vegan products to gain footing in the • Use marketing skills to lessen
Vegan movement. bad press
• Conquer the market for alternatives with • Justify high prices through
unique marketing skills. marketing skills/brand image
• Use reach to develop new products

Weak- • Developing different products to create • Develop different products that

ness variety the competitors are not mak-
• Reach out to more people in the lactose ing.
intolerant and vegan communities to de-
crease company cost
Table 8: TOWS-Analyse
Source: self-created

19
Corporate Social Responsibility (CSR)
When organisations or companies make a social commitment to behave ethically and contrib-
ute to economic development, this is declared as corporate social responsibility (CSR). In ad-
dition to improving the quality of life of employees and their families, the aim is to sustainably
support the local community and, in a broader understanding, society. The term was first men-
tioned by Howard R. Bowen in the early 1950s. In doing so, Bowen (1953, p. xi) hoped for "a
greater contribution to civil society by large corporations in the United States, because of their
significant economic power and the great impact of their business activities on the lives of
ordinary people". The subsequent development of CSR followed in parallel with social move-
ments (Carroll, 2016, pp.1 - 3). Thus, it can be stated that the importance of CSR in companies
goes beyond their minimum legal obligations (Whittington et al., 2019, p. 145).
Oatly AB has dedicated itself to the issue of sustainability and anchored it as a core value of
the company's vision. The company's long-term goal is to equip its entire production with 100%
renewable energy and thus give back to the environment what it deserves. At the same time,
the value chain should not be left out, so that suppliers and partners also have to work for a
sustainable food system (ESG, 2020).
Oatly AB is also committed to agile and modern human resource management. This means
that the first step is to create fair conditions for the employees so that they are paid accordingly
and secured for the future (insurance, pension, etc...). The company also tries to do justice to
all in topics such as diversity, employee training and talent development. For example, a six-
week leadership programme is offered to the company's talent (ESG, 2020).
Through an established code of conduct that all employees and suppliers are expected to
abide by, important issues such as bribery, corruption and discrimination are addressed in
order to avoid them (Code of Conduct 2022).
To also demonstrate a positive impact for local communities, Oatly AB has launched a 2020
pilot programme in collaboration with Practical Farmers of Iowa, Sustainable Food Lab and its
oat suppliers. The project will create cost-sharing incentives and market opportunities for corn
and soybean farmers in the western US. Also, through the support of Swedish farmers, 2020
could partially halve greenhouse gas emissions per calorie (Oatly, 2020).
Oatly AB is also working to educate young families about climate change and plant-based
diets, launching a "Help Dad" campaign in Sweden and the UK. Similarly, in Finland, brochures
were sent to over 240,000 households to spark discussion about the impact of conventional
milk (Oatly, 2020).
Likewise, Oatly AB is raising its voice in politics. The company successfully lobbied to stop an
amendment in the European Parliament to ban any use of milk-related language, packaging
and imagery for plant-based products (Oatly, 2020).
The above measures are just a few of the many points that Oatly AB is implementing to fulfil a
social obligation. Those who follow through on this commitment and meet a positive response
can clearly see this as a competitive advantage over others (Whittington et al., 2019, p. 145).

20
3.4 Culture and Strategy
Oatly was started in the 1990’s by a pair of brothers from Sweden, Rikard and Bjorn Oste.
Rikard was a food scientist, who was assisted by his brother in creating an alternative, dairy-
like, substitute for people who were lactose intolerant. The brothers were successful in making
the milk alternative, but weren’t able to break out into the international market in 2014, with the
help of Toni Petersson, who was named CEO of the company. In putting Petersson as CEO,
the company made changes to their packaging. By changing their packaging design and lan-
guage, Oatly was able to draw the consumer in with a more eye-catching and modern look.
Petersson then directed Oatly towards a more sustainable and environmentally friendly way of
packaging and producing their products, and they included these changes they made on the
packaging, to let the consumer know what changes they had made. Oatly then decided to
promote their product by going to local coffee shops and asking baristas to test the milk, to
show that if baristas liked and approved of the milk alternative, then people would be more
inclined to buy and use it as well. These changes allowed Oatly to grow significantly from the
years 2017 to 2019, so much so that in 2020, Oatly saw a 106.5% increase in revenue from
their 2019 reports (Schroder, 2021).
Oatly believes themselves to be a value-driven company. They believe that nutrition, sustain-
ability, and trust are extremely important, and don’t call themselves a food company, but a
lifestyle company. These principles align with their branding, but they also wanted them to be
able to adapt to the reality that Oatly wants to create for their customers. Oatly wants to bring
change and the health of the earth and planet are their number one priority.

Organisational Knowledge
Oatly is run by CEO, Toni Petersson, who took over in 2017. Petersson single handedly
changed the company, and elevated Oatly to a new level of revenue. Oatly has developed a
large customer base in Asia, North America, and Europe.
Oatly has made it their mission to make more options available for those with lactose intoler-
ance or those who are vegan or vegetarian. These people make up a large percentage of their
customer base.

21
4. Future strategic Recommendations for Oatly AB
In summary, as the industry leader in alternative products, Oatly Group AB continues to rep-
resent a strong starting position that confirms the global growth opportunity. With regard to the
internal status and external environment of the organisation, with the right strategy, the defined
goals can be achieved. These include increasing brand awareness, entering new markets,
increasing sales, increasing margins and expanding the product range.
We are conscious about the company's culture in making these recommendations. In strategic
planning, it is important to ensure that the strategic approach is compatible with the company's
values. In this way, the goal-oriented future perspective of Oatly Group AB is secured in the
long term. At the same time, management is reinforced on the basis of the corporate philoso-
phy and ensures economic success.
However, the simultaneous implementation of the various goals proves to be a major chal-
lenge. Accordingly, it is necessary to develop a strategic step-by-step plan, which is based on
the TOWS and Ansoff matrix and targets different strategic directions. The sequence deter-
mines which strategic fields are focused on first:

Corporate level: Entry to market development: Covering the

actual demand through different productions models
• Continued focus on brand identity → general oat products
should be associated with Oatly
• Supply demand, fast and easy, smaller margin, better than
not supplying
Step 1

• Use of a scale alliance as a strategic alliance

• Increase of the current capacities of Co-Packing & Hy-
brid-Packing
• Fast solution for high urgency
• Little loss by change of demand
• For a certain period of time (defined in ad-
vance)
• The loss of control over quality must be taken
into account, this can be avoided by the choice
of the outsourcing partner
• Key factor: strategic & value fit of out-
sourcing partner

Building new production plants for more capacity to meet de-

mand at the same time
• Simultaneously to the outsourcing of production
• Ongoing in the background
• Completed at the predefined time of outsourcing
Step 2

• Increase the margin through end-to-end-process

• Where to build the next plants?
• expanding Oatly’s global strategy
• fastest growing demand with the most potential in Asia
• Assessing of Asia’s market
• market attractiveness through high demand,
lactose intolerance of many people and foreign
direct investment through China Resources as
one of the largest shareholders (see more on
the next step)

22
 Further development in a more potential market
• Geographically
Step 3 o Ideas: further expansion in Asia because of high de-
mand (+98% in ´21 Q3) implicate
o Foreign direct investment (China resources)
o further revenue growth and not achieved saturation
o Given need: lactose intolerance, vegan movement,
climate crisis

Business level: Entry to market penetration: developing our

channel-distributions by the use of the sales department
• Oatly's sales department can be treated as a separate Stra-
tegic Business Units (SBU) due to its strong characteristics
• Implementation of strong sales strategy through differ-
Step 4

ent distribution channels

• Use of the built infrastructure
• Still includes market development -> development of
new industries (e.g., hospitality, public transportation
(for instance selling products on the train)
• Arises from basis of market development and is the beginning
of market penetration (from Market Development to Market
Penetration)
• Oatly has to meet the new requirements of the demand
Step 5

Action of market penetration: being able to penetrate the exist-

ing market
• Use of end-to-end production
• End of outsourcing
• Exploitation of the markets
• Economic scale comes into effect
• Margin increases

Rolling out the product portfolio

Step 6

• Main followed objective: association of oat products with

Oatly
• Expansion of the product portfolio
• By creating financial basis more investment in R&D
• Possible products are cheese, heavy cream etc.

23
Finally, in addition to the economic approaches, the current political situation must also be
considered and its possible effects taken into account. The current situation in Ukraine is now
having a far-reaching impact on the global economy. Rising raw material prices and inflation
have a negative impact on international supply chains and influence the production costs of
Oatly Group AB. From a macroeconomic perspective, this situation may well result in a new
order in the global economy, which will affect Oatly's business and require some realignment.
However, such changes may well have positive effects, such as strengthened political support
based on the Paris Climate Agreement.

5. Conclusion
In retrospect, the strategic business orientation of Oatly Group AB was analysed. For this pur-
pose, the external environment was first examined in more detail using the PESTEL analysis
and Porter's five forces. This highlighted the trends in the industry as well as its opportunities
and possibilities. Then, the internal environment of the Oatly Group was analysed. This uncov-
ered the capabilities of Oatly Group that the company can use to influence the external envi-
ronment and make recommendations.
The core competence at Oatly AB lies mainly in marketing as well as in the research of specific
enzymes that have been patented and thus guarantee the quality of Oatly products. The aim
is to satisfy the high demand for Oatly products. This is initially done by outsourcing production
for a limited period of time. In order to be able to meet the long-term demand efficiently, own
end-to-end production facilities in the top markets (EMEA, USA & Asia) are to be established
in parallel right from the start. Nevertheless, the acquisition of new market shares in new mar-
kets is not to be neglected. Above all, the potential of the Asian market is to be further exploited.
In order to establish a firm presence in the existing markets and in the Asian region, the ex-
panded sales department is to diversify and increase the distribution-channels. As soon as the
construction of the production facilities is completed, the strategic alliances of outsourcing
should be largely terminated. Now the market can be penetrated independently, so that the
margin of the products increases significantly and economic success can be achieved. By
gaining a large market presence, an enlarged product portfolio is to be developed for the future,
for which the expenditure of the R&D department is to be increased. In the future, alternative
oat products will be directly identified with the term 'Oatly' and a positive association will be
created.
However, the global political situation is particularly worrying in view of the current crises. The
Corona virus and the Ukraine conflict are two crises that we are currently confronted with and
which massively affect our lives in many ways. In addition to these two crises, the climate crisis
also has a major impact on everyone on our planet, and Oatly as a company is also affected
by the impact of the climate crisis. Rising grain prices and increasing transport costs, which
are a result of rising raw material prices, are further inhibiting factors in Oatly's growth strategy.
Therefore, it is important to keep an eye on all these crises and see what impact they can have
on your own company in order to be optimally prepared.

24
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29
Appendix
P - Polititcal E - Economic S - Social T - Technology E - Environment L - Legal
Analysis - Oatly
Group AB Factor Outcome Reference Opportunity or Threat Key Driver (Y or N) Certain or Uncertain
(O or T) (C or U)

International Trading - Asia, America, EMEA - ESG Summary Oatly O N C

Zones Group AB, p. 1 (2020)

Free Trade Zones - APAC , USA, Euro- O N C

pean Union

Variety of International - APAC: 6-13% / 0- - O and T N C

United States - Indi-
Tax Zones (VAT / Cor- 32,5%
rect Tax Guide,
porate TAX) - Europe: 4,5-27%
KPMG, no date
(+ reduced rates) / 9-
30% - Value Added Tax
- USA: no VAT but (VAT) rate‘ (2021)
Sales Tax (but in most Statista
of the states exempted
tax on food) / 21%
- Tax system and cor-
porate taxation in
china, IHK Pfalz, no
date

Imports and Exports - - ESG Summary, Oatly O N C

less duty (free trade
Group, 2020
zones + plants in
trading zones)
- Some exports (from
Sweden) to guaran-
tee quality

Paris Agreement - Paris agreement 2015, O Y C and U

1.5 degree goal
p. 3, article 2, para-
- Until 2030 graph 1(a)

Russia-Ukraine Conflict - T N U
war in general
- No more access to
APAC

30
 P - Polititcal E - Economic S - Social T - Technology E - Environment L - Legal

Factor Outcome Reference Opportunity or Threat (O Key Driver (Y or N) Certain or Uncertain (C or

or T) U)

Rising Interest rate - European Central Bank, T Y C

“money is more expen-
2022
sive”
- Decrease of inflation
- savings increase
- Investments decreases
- Impact on export situa-
tion
- Consequences for ex-
change rate
- Eurozone exports de-
creases

High Inflation - Trading Economics, 2022 T Y C

more expensive re-
sources
- Low margin
- Higher costs

Covid-19 pandemic - (World Health Organization, T N C

closed restaurants
2021)
- Transport challenges

31
 P - Polititcal E - Economic S - Social T - Technology E - Environment L - Legal

Factor Outcome Reference Opportunity or Threat (O Key Driver (Y or N) Certain or Uncertain (C or

or T) U)

Vegan movement - - O K C
need of an alternative to Nils-Gerrit Wunsch, 2022
dairy milk
- Rising target group

Awareness for Sustainibility - O K C

consumers care what
they buy
- Environmental concernes

Health awareness - preventing intolerances O K C

32
 P - Polititcal E - Economic S - Social T - Technology E - Environment L - Legal

Factor Outcome Reference Opportunity or Threat (O Key Driver (Y or N) Certain or Uncertain (C or

or T) U)

Increased Investments in - - O N C
quick transportation European Union, no date
modern Infrastructure
- Faster supply chain - Government initiatives in
infrastructure develop-
ment ,́ 2016
- North American transport
infrastructure

Different transport types - - transport business lexicon, O N C

wide selection of
no date
transport types
- Selecting the most sus-
tainable

Energy supplies - - O in Europe / T in the US N U (in view of putins war)

crude Energy production and
- imports, no date
Oil
- - Total energy supply, no
Natural gas
date
- Renewable energy
- Nuclear energy
- Solid fossil fuels
- Trend for renewable en-
ergy solutions

33
 P - Polititcal E - Economic S - Social T - Technology E - Environment L - Legal

Factor Outcome Reference Opportunity or Threat (O Key Driver (Y or N) Certain or Uncertain (C or

or T) U)

European Green Deal - - EUR-Lex, no date O K C

EU = world’s highest en-
vironmental standards
- protection of environment
- Minimizing risk of climate
change, human health
and biodiversity

UN Framework Convention - - O K C
International environment UNFCCC, 2022
on Climaate Change (UN-
agreement -
FCCC) European Commission
- aim on slow global warm-
ing
- To below global warming
to two degrees

Worlds first climate-neutral - developing clean sources European Commission, no

continent of energy date

34
 P - Polititcal E - Economic S - Social T - Technology E - Environment L - Legal

Factor Outcome Reference Opportunity or Threat (O Key Driver (Y or N) Certain or Uncertain (C or

or T) U)

EU competition rules - prohibition against anti- - O/T N C

Swedish competition
competitive cooperation be-
authority, no date
tween undertakings and
prohibition against the ex-
ploitation of market power
by undertakings in a domi-
nant position

Employment law - - O/T N C

US: EEOC USA gov., no date
- APAC: ELA / facing is- - Ridder, 2021
sues around pacific area - Clyde & Co.
- EU: EU Employment Law
(protection of discrimina-
tion, harassment, unfair
treatment etc.)

Trading Law - - O n C
different import authori- EU.Lizenz, no date
zations and licenses - Krause, 2015
- Free trade within the sin- - Möbius, no date
gle markets (Europe, US,
Asia)
- Customer regulations
must be observed
- Easy import and export li-
censes in China

35