Alcoholic Beverages in Kenya - Five Forces Analysis

Alcoholic Beverages in Kenya - Five Forces Analysis

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Short description of Porter's Five Forces analysis for…

Intensity of Existing Rivalry

Government limits competition (Alcoholic Beverages in Kenya) Government policies and regulations can dictate the level of competition within the industry. When...
Large industry size (Alcoholic Beverages in Kenya) Large industries allow multiple firms and produces to prosper without having to steal market share...
Fast industry growth rate (Alcoholic Beverages in Kenya) When industries are growing revenue quickly, they are less likely to compete, because the total...
Relatively few competitors (Alcoholic Beverages in Kenya) Few competitors mean fewer firms are competing for the same customers and resources, which is a...

Bargaining Power of Suppliers

Diverse distribution channel (Alcoholic Beverages in Kenya) The more diverse distribution channels become the less bargaining power a single distributor will...
Critical production inputs are similar (Alcoholic Beverages in Kenya) When critical production inputs are similar, it is easier to mix and match inputs, which reduces...
Volume is critical to suppliers (Alcoholic Beverages in Kenya) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...
Low cost of switching suppliers (Alcoholic Beverages in Kenya) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching...

Threat of Substitutes

Limited number of substitutes (Alcoholic Beverages in Kenya) A limited number of substitutes mean that customers cannot easily find other products or services...
Substitute product is inferior (Alcoholic Beverages in Kenya) An inferior product means a customer is less likely to switch from Alcoholic Beverages in Kenya to...

Bargaining Power of Customers

Product is important to customer (Alcoholic Beverages in Kenya) When customers cherish particular products they end up paying more for that one product. This...
Large number of customers (Alcoholic Beverages in Kenya) When there are large numbers of customers, no one customer tends to have bargaining leverage....
Limited buyer choice (Alcoholic Beverages in Kenya) When customers have limited choices they end up paying more for the choices that are available....

Threat of New Competitors

Strong distribution network required (Alcoholic Beverages in Kenya) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
High capital requirements (Alcoholic Beverages in Kenya) High capital requirements mean a company must spend a lot of money in order to compete in the...
Strong brand names are important (Alcoholic Beverages in Kenya) If strong brands are critical to compete, then new competitors will have to improve their brand...
Industry requires economies of scale (Alcoholic Beverages in Kenya) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
Customers are loyal to existing brands (Alcoholic Beverages in Kenya) It takes time and money to build a brand. When companies need to spend resources building a brand,...
Entry barriers are high (Alcoholic Beverages in Kenya) When barriers are high, it is more difficult for new competitors to enter the market. High entry...
High learning curve (Alcoholic Beverages in Kenya) When the learning curve is high, new competitors must spend time and money studying the market...

What is Porter's Five Forces Analysis?

WikiWealth's Five Forces analysis evaluates the five factors that determine industry competition. Add your input to alcoholic-beverages-in-kenya's five forces template. See WikiWealth's tutorial for help. Is WikiWealth missing any analysis? Check out our entire database of free five forces reports or use our five forces generator to create your own. Remember, vote up alcoholic-beverages-in-kenya's most important five forces statements.