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Five forces analysis of Pakistan FMCG industry:
Threat of new entrants.
Because of the large size of the Pakistani market and the high |r
Pakistan should be considered attractive for most major internati
producers. Such firms not yet in the country should thus be cons
entrants. In addition to the major international players on the FM
has a large number of regional producers serving narrow geogra
to the poor infrastructure in rural areas. These regional firms hav
specific demands of consumers and the difficult conditions for ef:
less developed areas. As the infrastructure in rural areas is unlik:
significantly in the foreseeable future due to investments being c
highway construction and urban areas, such producers can cont
offer considerable competition locally.
While Pakistan's poor infrastructure leads to an increased threa
entrants to the FMCG market in the country, it is on the other har
dampen the eagerness of foreign companies who are considerin
the same time, the lack of an organized retail sector is also likely
international entrants out since this can make it necessary to dez
number of small retailers. These problems as well as the probler
infrastructure can be amended by entering major metropolitan ar
the so-called market hotspots.
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