Chapter 2

External Evaluation

An external evaluation of SkyCrop Technologies highlights both opportunities and

challenges in the agricultural technology landscape. The growing demand for precision farming

solutions presents a significant opportunity for the company to expand its client base, especially

as more farmers and agricultural associations recognize the benefits of UAV technology in

improving productivity and sustainability. The rise of digital platforms and increased access to

information further supports SkyCrop's marketing efforts, allowing the company to effectively

reach a broader audience.

However, the company also faces external challenges such as regulatory changes in the

use of UAVs, particularly regarding safety, privacy, and environmental impact, which could affect

operational flexibility. Additionally, the competitive landscape is evolving, with new entrants

offering similar drone services, pushing SkyCrop to continuously innovate and differentiate itself.

Market fluctuations, especially in the agricultural sector due to climate conditions or economic

shifts, could also impact the demand for drone services. Despite these challenges, SkyCrop

Technologies is well-positioned to capitalize on the growing trend of smart farming through

strategic partnerships, continuous improvement, and strong digital engagement.

PESTEL ANALYSIS

By conducting a thorough PESTEL analysis, SkyCrop Technologies can make informed

strategic decisions, identify potential risks and opportunities, and adapt to the dynamic

agricultural landscape. This proactive approach allows the company to enhance its competitive

edge, align its services with market demands, and ultimately achieve its business objectives.
POLITICAL FACTORS

In the Philippines, government regulations significantly impact the operations of

agricultural technology companies like SkyCrop Technologies. The Philippine government has

enacted policies to enhance food security and agricultural productivity, such as the Agricultural

and Fisheries Modernization Act, which supports the use of modern technology in farming

(Department of Agriculture, 2023). The Civil Aviation Authority of the Philippines (CAAP)

regulates drone operations, establishing safety guidelines, registration requirements, and pilot

licensing protocols necessary for commercial UAV use. Compliance with these regulations is

essential for legal operation and to avoid potential penalties or legal issues. Furthermore, the

Philippine government has been promoting initiatives aimed at enhancing food security and

supporting local farmers, which aligns with SkyCrop's mission of utilizing drone technology to

improve agricultural efficiency. For example, the government’s Philippine Development Plan

emphasizes the adoption of modern agricultural technologies to boost productivity and

sustainability in farming, creating a conducive environment for SkyCrop's growth (Philippine

Statistics Authority, 2023). Additionally, local government support in Davao del Norte through

initiatives such as the Davao Region's Agricultural Investment Program can facilitate

partnerships and provide access to funding opportunities, further strengthening the company's

position in the market.

ECONOMIC FACTORS

Environmental sustainability is increasingly critical in the Philippines, particularly as

climate change poses significant challenges to agriculture. SkyCrop Technologies has the

opportunity to position itself as a champion of eco-friendly practices by offering UAV services

that minimize chemical runoff and promote efficient resource management. The use of drones

can significantly reduce the volume of pesticides and fertilizers applied, aligning with the
growing emphasis on sustainable agriculture. By actively participating in environmental

initiatives, such as reforestation and biodiversity conservation programs, SkyCrop can enhance

its reputation as a responsible corporate citizen. Engaging in partnerships with environmental

organizations and local government units can further solidify the company's commitment to

sustainability while attracting clients who share similar values. Promoting environmental

stewardship can also open avenues for grants and incentives aimed at supporting sustainable

agricultural practices.

The economic landscape in Davao del Norte, predominantly reliant on agriculture,

presents both opportunities and challenges for SkyCrop Technologies. The region's economy is

significantly influenced by major agricultural products such as bananas and rice, which are

crucial to local livelihoods. The Philippine economy has shown resilience, but fluctuations in

agricultural commodity prices, labor costs, and changes in farmers’ income levels can directly

impact the demand for precision agriculture services. For instance, the Philippine Statistics

Authority reported a 12.3% growth in the agriculture sector in 2022, indicating a rising interest in

modern agricultural solutions (Philippine Statistics Authority, 2023). During periods of high

commodity prices, farmers may be more inclined to invest in technologies that enhance their

productivity, presenting a prime opportunity for SkyCrop to market its UAV services. However,

economic downturns or fluctuations in commodity prices could lead to reduced spending on

such services, making it crucial for SkyCrop to adapt its offerings based on market conditions

and provide value-driven solutions that optimize resources and yield.

SOCIAL FACTORS

Social attitudes toward technology and sustainable farming practices are evolving in the

Philippines. There is a growing recognition among farmers of the benefits that drone technology

can bring, such as improved efficiency in crop management and reduced chemical usage.
SkyCrop Technologies can capitalize on this trend by offering educational resources and

demonstrations that showcase the effectiveness of UAVs in agricultural applications.

Additionally, as local communities become more environmentally conscious, there is an

increasing demand for sustainable farming solutions that align with these values.

In the Philippines, a growing awareness of the benefits of modern agricultural practices

is reshaping attitudes among farmers regarding the use of UAVs. As farmers face increasing

pressure to enhance productivity amid challenges like labor shortages and climate change,

many are seeking innovative solutions that can help them achieve better results. Reports

indicate that farmers who adopt drone technology can improve crop management and reduce

chemical usage, which resonates well with the rising consumer demand for sustainable and

responsibly grown produce (EcoWaste Coalition, 2023). SkyCrop Technologies can leverage

this trend by offering educational workshops and demonstrations that showcase the

effectiveness and efficiency of its services. Additionally, with local communities becoming more

environmentally conscious, there is a demand for sustainable farming solutions that align with

these values. By positioning itself as a leader in eco-friendly practices and actively engaging

with local communities, SkyCrop can foster trust, build strong relationships, and enhance

customer loyalty.

TECHNOLOGICAL FACTORS

Technological advancements in drone capabilities, such as enhanced imaging, precision

spraying, and real-time data analysis, are crucial for SkyCrop's competitive advantage. The

rapid development of drone technology allows for improved efficiency and effectiveness in

agricultural applications. Staying updated with the latest innovations and continuously upgrading

equipment will enable SkyCrop to offer cutting-edge services to its clients. Collaborations with

technology providers and research institutions can further enhance SkyCrop’s service offerings.
 Innovations in UAV technology enable more efficient application of fertilizers and

pesticides, as well as improved monitoring of crop health through aerial imaging. For instance,

the DJI Agras T20 drone offers advanced features such as obstacle avoidance and high-

capacity spraying systems, which significantly enhance operational efficiency (Technology

Review Philippines, 2023). Staying updated with the latest innovations allows SkyCrop to

continuously improve its service offerings, ensuring clients benefit from the most efficient and

effective solutions available. Collaborating with technology providers, research institutions, and

agricultural experts can facilitate access to cutting-edge advancements and foster innovation

within the company. As the demand for data-driven agricultural solutions grows, integrating

advanced analytics and machine learning into SkyCrop's services can further enhance its value

proposition, enabling farmers to make informed decisions based on actionable insights.

ENVIRONMENTAL FACTORS

Environmental sustainability is a critical concern in the Philippines, especially with the

impacts of climate change on agriculture. The impacts of climate change, such as extreme

weather events and shifting precipitation patterns, directly affect agricultural productivity.

SkyCrop Technologies has the opportunity to position itself as a champion of eco-friendly

practices by offering UAV services that minimize chemical runoff and promote efficient resource

management. The use of drones can significantly reduce the volume of pesticides and fertilizers

applied, aligning with the growing emphasis on sustainable agriculture (Green Industry

Coalition, 2023). Additionally, engaging in reforestation and biodiversity initiatives in Davao del

Norte can enhance the company’s reputation and commitment to environmental stewardship.

By actively participating in local environmental programs and promoting sustainable agricultural

practices, SkyCrop can attract clients who prioritize eco-friendly solutions, thereby gaining a

competitive advantage in the market.

Legal factors are paramount for SkyCrop Technologies, as compliance with local laws and

regulations governing drone operations is essential for successful business operations. The

CAAP has established strict regulations regarding drone registration, pilot licensing, and

operational guidelines to ensure safety and privacy. For example, the Drone Regulations of

2018 outlines requirements for commercial drone use, emphasizing the need for certified pilots

and registered drones (Philippine Drone Association, 2023). Staying informed about these

regulations and engaging in regular legal assessments is crucial for mitigating risks associated

with non-compliance. Additionally, understanding agricultural laws related to pesticide usage

and environmental protection ensures that SkyCrop's services align with legal standards. Failure

to comply with these regulations could result in penalties, legal challenges, and reputational

damage. Furthermore, actively participating in industry associations can provide SkyCrop with

insights into upcoming regulatory changes and foster collaboration with other stakeholders in

the agricultural technology space. By prioritizing legal compliance, SkyCrop can operate

confidently within the framework of the law, enhancing its credibility and trustworthiness in the

market.