5 Forces Analysis on Lipton yellow label

Rivalry:
The exit barriers Ior Lipton is very high because the Lipton is a international brand and itinvested a huge
amount in tea industry and it develop a name in black tea industry in Pakistan sothe barriers Ior Lipton is
high. The concentration is also high Ior this Iirm in tea industry inPakistan. They have diIIerent product
and there is also diIIerences in their every product oI tea.In Pakistan there is a separate brand identity Ior
Lipton yellow label between rivalries.
Barriers to entry:
Due to high barriers the Lipton have the advantage oI absolute cost and access to inputsand access to
distribution is easy and there is also the threat oI low switching cost. It`s alsoneeded a huge capital
investment by Lipton which creates barriers Ior new entrant, and also therebrand identiIication and Iame
also create barriers.
Threat oI Substitute:
Lipton have also threat oI substitute but and there is also a threat oI change in technologyin their
substitute like instant coIIee by nestle also a threat Ior Lipton and over all tea industry.the switching cost
is zero Ior the customer the customer can easily switch to other brand likewise the
Tapal tea
introduce
Herbal tea
in Pakistan so the diet conscious customer switch toherbal tea. The Lipton has the threat oI substitute.
Supplier power:
The supplier power is higher soothe Lipton spent huge amount on raw material theswitching cost oI the
Iirm in the industry is low and the importance oI volume to buyer is veryimportant because Lipton is big
buyer oI tea material.
Buyers` power:
The buyers volume is higher the most oI the buyer oI Lipton tea is oIIices and diIIerentworking sectors.
Lipton has a unique brand identity among buyers, and the buyers also pricesensitive enough but the loyal
and taste conscious buyer never switch to other brand iI thesubstitute is available in suitable price with
incentives Ior buyer then buyer power is also higher to switch the brand. Like many buyer switch to Tapal
tea because oI its Danedar quality taste and28color.
tapal dander changed its packaging when they advertise it customer perceived thatthey transIer the old material oI tea into new
cover or packet so they lose the trust oI theircustomer and they invested heavy amount to overcome that trust