The purpose of this knowledge check is to demonstrate that you can use the PESTEL and Five Forces tools within the context of the information provided in the Industry Insights paragraphs.

Instructions:

Carefully read the Industry Insights excerpt from a Statista report. It is provided below. $($You are not expected to read the full Industry Insights report. The excerpt has enough information for you to connect to PESTEL and Five Forces.$)$

Look up any words or phrases that you are not familiar with so that you fully nderstand the report.

Answer the following questions:

PESTEL:

Describe the PESTEL trends that are referred to in the Industry Insights excerpt below.

Use two examples to explain how these trends are impacting specific elements of the business model canvas of companies in the industry.

Five Forces:

Explain any of the competitive forces that are relevant to this Industry Insights excerpt.

For each force that you mentioned, how is the force affecting the competition in the industry? $($i$.$e$.,$ Is it becoming more or less intense?$)$

Based on PESTEL and Five Forces analysis that you've provided, describe a type of business that is expected to grow in this industry.

Industry Insights Farming

"Advancing technology and new farming methods offer a new approach to agricultural production with the potential to drastically change its effect on the environment. From drones and satellites to IoT and Artificial Intelligence, technological innovation is reshaping the farming industry. The global smart farming market has been steadily growing over the last years and is projected to grow even faster in the coming years.

Indoor farming is another popular farming alternative which reduces the reliance on weather, skilled labor, high soil fertility, and water consumption. It allows for a more consistent and reliable yield throughout the year and minimizes the chance of negative effects from disease or pests. The ability to use vertical space and reduce the need for additional land and construction activity contributes to the appeal of vertical farming in large cities. The market is most prominent in North America, Europe, and the Asia Pacific region." $($Statista$,2022)$