I. Barriers to entry/threat of new entrants
Please identify the potential new entrants to the concentrate producer’s industry, and then answer the following questions.
| |Yes |Not |No |
| | |sure | |
|1. Do large firms have a cost advantage in the industry? (If so, please also think about how large | | | |
|firms obtain cost advantages) | | | |
|2. Are products protected by patents or other proprietary rights in your industry? | | | |
|3. Are there any established brand identities in the industry? | | | |
|4. Do new entrants need lots of capital to enter the industry? | | | |
|5. Does the newcomer face difficulty in accessing distribution channels? | | | |
|6. Does experience help firms to continuously lower costs? | | | |
|7. Is it difficult for the new entrant to obtain skilled people, materials or suppliers? | | | |
|8. Are there any licenses, insurances or qualifications which are difficult to obtain? | | | |
|9. Can the new comer expect strong retaliation from existing firms on entering the market? | | | |
More “yes” answers will reflect lower threat of entrants. Based on your analysis, please evaluate the overall threat of new entrants for concentrate producers. Please conduct the same analysis for bottlers.
II. Bargaining power of buyers
Please identify buyers in the concentrate producers’ industry, and then answer the following questions.
| |Yes |Not |No |
| | |Sure | |
|1. Are there a large number of buyers relative to the number of firms in the industry? | | | |
|2. Are sales dispersed among a large number of customers? | | | |
|3. Do buyers incur any significant costs in switching between products or services provided by | | | |
|different firms? | | | |
|4. Does the buyer need a lot of important information from the seller before buying? | | | |
|5. Is it hard for buyers to make the product or provide the service by themselves? | | | |
|6. Are buyers insensitive to price? | | | |
|7. Are buyers loyal to brand names in this industry? | | | |
|8. Are buyers’ businesses profitable? | | | |
More “yes” answers will reflect lower power of buyers. Based on your analysis, please evaluate the overall buyers’ power for the concentrate producers. Please conduct the same analysis for the bottlers.
III. Bargaining power of suppliers:
Please identify suppliers for the