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Porter’s forces of competition:Supplier power: i. Nature has blessed Pakistan with an ideal climate fora wide range of delicious fruits. So there will be nosuch thing as supplier monopoly, as we are notdealing with something that’s supplied by only acouple of people.ii.There might be some degree of differentiation of theinputs as fruits from different territories have a bitdifferent taste. Buyer power: i. Buyer power in terms of volume buying is not high.But in terms of his or her experience, because abuyer having a good or bad experience willimmediately share it with others and may affectother buyers behavior.ii.The switching cost from one product to another isalmost nonexistent which empowers the buyer.iii.The number of substitutes is so much high that anymistake in distribution will make buyer to use otherproduct to fulfill its need.iv.Buying behavior is inclined more towards pricesensitivity rather than quality or brand loyalty. Barriers to entry: i.Luckily there are no barriers to enter the market onpart of the government.ii.The industry is easy to enter as the technology is nota very complicated one and the assets are not veryspecialized ones. iii. Considering that the behavior of general consumer isprice driven therefore it also encourages others toenter the market. Threat of substitutes: i.A large number of substitutes are available inbeverage industry.ii.Because of highly competitive industry there is noswitching cost of buyer from one product to another.iii.The buying

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Porters forces of competition:Supplier power:i.Nature has blessed Pakistan with an ideal climate fora wide range of delicious fruits. So there will be nosuch thing as supplier monopoly, as we are notdealing with something thats supplied by only acouple of people.ii.There might be some degree of differentiation of theinputs as fruits from different territories have a bitdifferent taste.Buyer power:i.Buyer power in terms of volume buying is not high.But in terms of his or her experience, because abuyer having a good or bad experience willimmediately share it with others and may affectother buyers behavior.ii.The switching cost from one product to another isalmost nonexistent which empowers the buyer.iii.The number of substitutes is so much high that anymistake in distribution will make buyer to use otherproduct to fulfill its need.iv.Buying behavior is inclined more towards pricesensitivity rather than quality or brand loyalty.Barriers to entry:i.Luckily there are no barriers to enter the market onpart of the government.ii.The industry is easy to enter as the technology is nota very complicated one and the assets are not veryspecialized ones.iii.Considering that the behavior of general consumer isprice driven therefore it also encourages others toenter the market.Threat of substitutes:i.A large number of substitutes are available inbeverage industry.ii.Because of highly competitive industry there is noswitching cost of buyer from one product to another.iii.The buying behavior of customers is more sort of price depended rather than taste.Degree of rivalry:i.Intensity of rivalry in beverage industry is very high.Big brands such as Coca-cola, Pepsi, Nestle, Shezan,Country etc. are competing in this industry.ii.As the beverage industry itself is very vast forinstance soft drinks, hot drinks, mineral water and juices no of direct and indirect competitors is alsolarge.iii.Most of the brands in competition are worldrecognized giants.Opportunities:Product identification is the considerable factor affecting Gourmets competitive position. Gourmets brand name is known well throughout Pakistantoday. The most important concern is that above the past few years has been to get this name product to be even better standard. Packaging changes have also affected determinant of productivity. The company can advertise and introduce its outlets in other cities of Pakistan to gain more market share. As population of Pakistan is increasing day by day, so there is great opportunity for gourmet to attract new customers. Company may start entering rural areas also. The company may also diversify its business in some other potential business. Increased interest of people in musical groups, cultural shows and sports has provided anopportunity for Gourmets to increase its sales through them. Expanding the product/service lines by Gourmet Baker Pakistan could help them raise sales and increase their product portfolio. Gourmet Baker Pakistan has a number of highly skilled staff, which is an opportunity for them to explore as expertise of their staff can help Gourmet Baker Pakistan to bring the business forward.`Threats:One of the major threats that Gourmet Cola has to face is in the form of its two competitors; Pepsi and Coca Cola. These two companies have a very strong hold in the market and breaking their status is going to be very difficult by Gourmet Cola. Gourmet needs to market their company in cities where they do not have outlets to make consumers more aware about their product. Law and order situation of the country. Oil pricing in the country. Political instability. Electricity shortage. Extra competition and new competitors entering the market could unsteady Gourmet Baker Pakistan and be a threat.