Global Forces and the European Brewing Industry

FORCE| NOTES| LEVEL| THREAT OF NEW ENTRANTS| -Inexistence of legal adit barriers;-High initial investments in the industry;-Existence of economies of scale;-Inexistence of switching be for costumers.| MEDIUM| THREAT OF SUBSTITUTES| -There are no switching cost for costumers;-High interest in exotic harvest-festivals;| spirited| BARGAINING author OF SUPPLIERS| -European packaging industry is highly concentrated;-There are no substitutes for the packaging input.| HIGH| BARGAINING POWER OF COSTUMERS| -The buyers are individuals, so there is no concentration of buyers;-Low switching costs for costumers;-The product is not so differentiated and can be replaced by substitutes.| LOW| COMPETITIVE RIVALRY| -There are many pretenders in the industry;-There is not much differentiation between players products; -The companies compete a lot in prices.| HIGH| ATTRACTIVENESS| | LOW| In arrange to analyze the create from raw stuff industry attractiveness, we performed a Porter Five Forces Model summary and a PEST analysis.

CONTEXT| TREND| IMPACT| | | irrefutable| NEGATIVE| Political-Legal| -Governmental campaigns against drunken driving;-Governmental campaigns towards health problems because of alcohol;-Free-circulation of goods and capitals in the EU;-Alcohol consumption limits policies in some countries.| -There are no barriers for trades and that is positive in a market that is so global.| -Growing consumers awareness for health problems and drunken driving.| Economical| - Slowdown of economical grow rate in Europe countries;-Exponential economic harvest-home in markets like China, India and South America.| -In the non-European market there are a lot of opportunities of growth.| -There are some challenges in the European market, because of the slowdown of beer consumption.| Socio-Cultural| -Growing awareness for health problems and fitness;-Increasing hostility towards turn drinking;-Growing... If you want to get a full essay, order it on our website: Orderessay

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