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Threats of New Entrants

1. How loyal are the end users in this industry?
 End users are loyal to this industry in the sense that despite the unnatural
effects of these beverages to the body, buyers still patronize it.
2. How troublesome or hard is it for the end users to switch and use another product?
 It is burdensome because of the rapid changes of the taste and
preferences of end users. In addition, the price range of other products
are not too far from each other.
3. Does it require a large seed capital to enter this industry?
 It is not as expensive compared to other industries such as automotive
industries.
4. Are entries to this industry regulated by government?
 No, the government does not regulate it.
5. How hard is it to gain access to the distribution channels?
 It is easy to gain access to distribution channels because it is a common
product that is saleable in grocery stores, etc.
6. How long does it take new staff to acquire the necessary skills to do the work?
 It does not take much time because they are only taught how to operate
the machineries because this industry concentrates on using machineries
in its operations. It offers seminars and workshops for its own employees
to be informed in using those machineries used in the day-to-day
operations.

Threats of Substitutes

1. How many close substitutes are available?
 There are many existing substitutes like powdered juices and coffee
which are patronized by end users.
2. How pricy are the substitutes?
 The price range of products and its substitutes are of the same level.
3. What is the perceived quality of the substitutes?
 They are of almost the same quality because by nature they are just
alternatives to become handier. They are of the same quality but the only
difference is in its form, in soft drinks are in liquid unlike in powdered
juices which are in solid forms to when mixed will be of same quality.

Intensity of rivalry among established firms

1. How many close competitors exist in the industry?
 There are many close competitors in this industry— first that one of its
competitors is a necessity, which is water. Other competitors are those of
the coffee business. The main factor why competitors pump out is

because of the opportunities that is influence by the changing taste and preferences of end users. supermarkets. Just as stated above. We do not just consider the quantity of the buyer but also the quality of the buyer in a sense that it can supply the wants of a wide range of users. 4. 5. consolidated. However. even if there are many others who offer the same products as bottled drinks than bottled juices and soft drinks. Do you depend only on a few buyers to sustain your sales?  We depend on all our buyers but we cannot erase the fact that not all buyers buy the same volume. it is still more likely that this industry will be patronized by many buyers. How many companies are there for the buyer to choose from?  Buyers may choose from many companies. 2. How large are your buyers’ company?  The buyers of this industries varies from large— such as malls. 3. etc.” but with different flavors like Coke. Bargaining power of Customers 1. 3. convenient stores to small— such as sole proprietors which they will in turn offer to the end users or consumers. . thus. What is the current industry growth rate?  It is stable because there is not much movement in the growth rate of this industry and it has already established market to a wide range of customers. many opportunities come and go to the industry as well as its competitors because of the rapid change in the taste and preferences of end users. we receive large amounts of sales from those of the large buyers but we do not just target those who buy large volumes. Mountain Dew. oligopoly or monopoly industry?  It is oligopoly because it belongs to a market in which control over the supply of a commodity is in the hands of a small number of producers and each one can influence prices and affect competitors. They may be of the same type that is “soda. Are the buyers purchasing from you as well as your competitors?  Competition in an oligopoly industries like this is not that intense. How hard is it for the buyers to switch and use competing products?  The main factor that taste and preferences of end users varies rapidly makes it easy for them to switch to competing products 6. Sparkle. 2. it is a want. What are the sizes of your close competitors?  The sizes of the close competitors are large which is of the same size as the industry. What is the industry structure? Is it a fragmented. 4. Are the buyers buying a huge volume?  Customers are buying a large volume because of the perspective of end users that types of products from this industry are a necessity but in fact. 7Up.

Are there substitutes for your suppliers’ products? In terms of substitutes. Do the buyers have the capacity to enter your business and produce the goods themselves?  Buyers want convenience. Bottled juices and soft drinks also need to be considerate of the ingredients it contains. capacity to enter into this kind of business is not impossible. Bargaining power of Suppliers 1. Hence. it is hard to tell if there are many to choose from because we are talking about drinks that people may intake. Therefore. .” For normal people. It is obvious that no one company can produce all the materials it needs. Do your suppliers serve multiple industries? Does the total industry revenue accounting for only a small portion of the supplier’s total revenue? Most of the ingredients that bottled juices and soft drinks companies acquire from their suppliers are the basics like sugar. 2. 7. One example is that of the company that produces Del Monte Pineapple Juice drink. Do you have high switching cost to use another supplier? Switching of supplier is not that costly because of the reason stated in question number 2. 5. especially here in the Philippines where most people are semi-health conscious. One way is to produce locally what you need. 3. Do suppliers have the capacity to enter your business? Suppliers of raw materials may have the capacity to enter this kind of business but they need to consider finding other suppliers for the materials that they do not produce. so suppliers are possibly serving many industries other than this one. which also has their own plantation of pineapples. but impractical if they do not intend to be serious in doing business. one company can have the capacity to do business or make their existing business easier to conduct. that the ingredients are most likely to be the common ones and many suppliers offer their kind. suppliers’ total revenue is probably comprised of many sources with a little amount coming from this industry. they are not likely to enter the industry of producing these bottled juices and soft drinks if they belong to the common community of “consumers. 4. These are not rare. Does your company have the capacity to enter the supplier’s business? Certainly.