On a global perspective, the fact that bottled water is the fastest- growing beverage category in the world ensures buyer volumes, which is the case in the UK translates to high bargaining power. Summary In Porter 5 analysis of the UK bottled water industry rivalry amongst the industry players is evident there is a fight for market share and control.
Provide and explain ten 10 strategies as examples. The industry structure is constantly being revolutionized by innovation that indicates Five Forces model being of limited value since it represents no more than snapshots of a moving picture.
Several factors determine the bargaining power of customers, including: Customers tend to enjoy strong bargaining power when: There are only a few of them The customer purchases a significant proportion of output of an industry They possess a credible backward integration threat — that is they threaten to buy the producing firm or its rivals They can choose from a wide range of supply firms They find it easy and inexpensive to switch to alternative suppliers Threat of Substitute Products A substitute product can be regarded as something that meets the same need Substitute products are produced in a different industry —but crucially satisfy the same customer need.
The extent of competitive rivalry. Porter argues that five forces determine the profitability of an industry. The next step is to highlight the key factors on a diagram, and summarize the size and the scale of the force on the diagram. Barriers to Entry: Weak Force.