Scribd Logo
Upload

Welcome to Scribd!

  • 189 views

    FINLATICS RESEARCH TASK Sector 1

    Uploaded by

    Kumardeep Singha
    The document analyzes Porter's Five Forces framework for the food and beverage industry. It discusses each of the five competitive forces: 1) bargaining power of buyers is high for large stores but low for small restaurants, 2) suppliers of packaging and bottling equipment have little power, 3) rivalry among existing competitors is high due to few dominant players, 4) substitute products like bottled water and sports drinks pose a strong threat, and 5) barriers to entry are extremely high due to costs and need for economies of scale. In conclusion, entering the beverage industry is very challenging due to intense competition between established brands.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    FINLATICS RESEARCH TASK Sector 1

    Uploaded by

    Kumardeep Singha
    189 views2 pages
    The document analyzes Porter's Five Forces framework for the food and beverage industry. It discusses each of the five competitive forces: 1) bargaining power of buyers is high for large stores but low for small restaurants, 2) suppliers of packaging and bottling equipment have little power, 3) rivalry among existing competitors is high due to few dominant players, 4) substitute products like bottled water and sports drinks pose a strong threat, and 5) barriers to entry are extremely high due to costs and need for economies of scale. In conclusion, entering the beverage industry is very challenging due to intense competition between established brands.

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document analyzes Porter's Five Forces framework for the food and beverage industry. It discusses each of the five competitive forces: 1) bargaining power of buyers is high for large stores but low for small restaurants, 2) suppliers of packaging and bottling equipment have little power, 3) rivalry among existing competitors is high due to few dominant players, 4) substitute products like bottled water and sports drinks pose a strong threat, and 5) barriers to entry are extremely high due to costs and need for economies of scale. In conclusion, entering the beverage industry is very challenging due to intense competition between established brands.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    189 views2 pages

    FINLATICS RESEARCH TASK Sector 1

    Uploaded by

    Kumardeep Singha
    The document analyzes Porter's Five Forces framework for the food and beverage industry. It discusses each of the five competitive forces: 1) bargaining power of buyers is high for large stores but low for small restaurants, 2) suppliers of packaging and bottling equipment have little power, 3) rivalry among existing competitors is high due to few dominant players, 4) substitute products like bottled water and sports drinks pose a strong threat, and 5) barriers to entry are extremely high due to costs and need for economies of scale. In conclusion, entering the beverage industry is very challenging due to intense competition between established brands.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    FINLATICS RESEARCH TASK

    Sector Project 1
    Food & Beverages Industry

    Submitted By:
    Kumardeep Singha
    [email protected]
    Date of Submission – 5th October, 2020

    Introduction –
    Porter’s Five forces is a framework coined by Michael Porter (Professor of strategy at
    Harvard School) for analyzing a company’s competitive environment. The number and
    power of a company’s competitive rivals, potential new market entrants, suppliers,
    customers, and substitute products influence a company’s profitability.

    Porter Five Forces Analysis of Foods and Beverage Industry –


    The Porter’s five forces analysis is established by Michael Porter with the purpose of
    understanding and evaluating the factors that influence the success of the industry in terms of
    five forces. Moreover, it explains the strategy that is adopted by the companies to increase
    the productivity by taking in to consideration the five powers. The Porter’s five forces
    analysis on the foods & beverage industry is given below-
    1. Bargaining Power of Buyers-
    The buyers mainly include large grocers, restaurants and stores. The soft drink companies
    distribute products to these stores, who later resale to the consumers. Different levels of
    bargaining power exist with discount stores having a lot of it due to large demand whereas
    restaurants ordering low volume fail to have any bargaining power.
    2. Bargaining Power of Suppliers-
    Suppliers of bottling equipment and packaging hold no power. Companies mostly own the
    majority of the bottling and hence suppliers do not hold much bargaining power. For sugar
    and additives suppliers, since there are a lot of them, soft drink manufacturer can shift
    supplier leaving almost no bargaining power with suppliers.
    3. Rivalry among existing Customers-
    Carbonated software industry is a huge industry. Currently few competitors exist and hence
    it allows multiple firms and producers to prosper.
    4. Threat of Substitute Products-
    Soft drink industry offers substantial product differentiation. However, substitutes like
    bottled water, sports drinks, tea etc. are increasingly getting popular with health conscious
    trend. With increasing flavours and varieties, these products pose a strong threat to the
    industry.
    5. Threats of New Entrants-
    Coca-Cola and Pepsi Co dominate the soft drink industry. In addition, the industry is fully
    saturated and minimal chances of growth making it extremely difficult for new players to
    start competing. Moreover, huge fixed costs are needed and thus new entrants cannot
    compete without economies of scale. Therefore new entrants do not create significant threat.

    Conclusion:
    So, Looking at the Analysis, we concluded that entering in the world of beverages is a
    challenging task to accomplish as there exist a tough competition and the brands are striving
    to maintain their name through various incentives, advertisements, promotions, and many
    more.

    *********

    You might also like