CURRENT STATE ANALYSIS

Porter’s Five Forces Analysis for ABX Brewery, Inc.

a. Competition in the Industry
- ABX Brewery's immediate competitors are Red Beer, Anthro Beer, and Thunder
Beer, all of which are produced by the same company. Because of their enormous
appeal, every one of ABX's beer brands has been dominating the Philippine beer
industry for the past 30 years. According to a recent poll, the company is expected
to maintain a 50 percent share of the local market for the next five years unless it
cannot meet its loyal customers' needs. It loses power when there are many
competitors and similar items and services. Hence, the beer market hunts for
competitors who can offer better deals or lower prices.

b. Potential of New Entrants into an Industry

- A new player intends to enter the local beer industry in the near future. Northwest
Beer from the United States, widely regarded as the best beer globally, plans to
enter the Philippine beer market by 2024. New competitors with similar goods
and services can hurt a company's ability to compete. As a result, newcomers are
a threat because they are easy to get into.

c. Power of Suppliers
- Suppliers are essential at every step of the product's lifecycle, from getting raw
materials to increasing manufacturing. When breweries want to get the most out
of their products, they must get to know the people who make their products.

Production facilities for the corporation can be found throughout the country. The
company's main headquarters in Talisay City, Cebu, has been in operation for
approximately two decades. The company's first location was located in the city
of Cebu in the Philippines. The company was compelled to shift its operations to
the current location due to the limited space at the previous location in Cebu. Raw
materials for ABX are sourced from local suppliers throughout the country.
Customers worldwide are ready to supply the company with high-quality products
at lower prices, and there is a plentiful supply of ingredients to pick from.
Distributors and dealers can be compensated for their payments even if they have
been in business for more than a year. As a result, the financial liquidity of the
organization has been negatively impacted. However, the firm is still able to meet
its financial responsibilities while taking this method. The company has
experienced challenges obtaining the funds it requires to make significant
improvements in its operations in recent years.

d. Power of Customers
- Customers have a lot of power, which is essential because they help make money.
Without them, businesses like these can't keep going.
 ABX's beer brands have enjoyed widespread success, allowing them to dominate
the local beer sector for more than three decades, partly due to their distinctive
flavors. According to the results of a recent poll, the company will be able to
maintain a 50 percent market share in the local market for the next 5 years unless
it is unable to meet the demands of its long-term customers. According to a recent
survey, alcoholic beverages flavored with various fruits are becoming
increasingly popular among the young adult population. This group of individuals
accounts for around 40% of our intended client base. The beverage is slowly but
steadily replacing beer at some of the most popular gatherings for this age group.

e. Threat of Substitutes
- The threat of substitutes is that there are other goods that a customer could buy
that the same company does not make. Customers at ABX come from a wide
range of socioeconomic and cultural backgrounds, which makes the company
unique. According to the distributor, the beer products are already making their
way into the Southeast Asian beer market, where they are establishing a small but
devoted following, which makes a substitute for the products offered by ABX
Brewery. A recent survey found that alcoholic beverages flavored with various
fruits are becoming increasingly popular among young adults. They are gradually
but steadily replacing beer on some of this age group's most popular occasions.