Competitive analysis of sheep milk as a product

Sa？etak Taking into account the dynamic nature of the external and internal environmental factors, competitive analysis of sheep milk as a product helps the subjects involved in the production of sheep milk to be properly differentiated from direct and indirect competition. The basic aim of this paper is to analyse the state of sheep breeding in the Republic of Croatia and to identify the most important external and internal environmental factors in order to determine the strategic factors that may affect the future development of sheep milk as a product. Comparison of Porter’s and PESTLE analyses points to the conclusion that factors of the political-legal environment, competitors, threat of new entrants, technological environment and substitutes have a negative impact on sheep milk as a product. All the other factors, like economic, social and natural environment, as well as the bargaining power of suppliers and buyers, have a stimulating effect, which makes sheep milk a prospective and potentially profitable product