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SMMCˍG6ˍ[BS-2] External Analysis, :tropical_drink:The Soft Drink Industry,…

- - - - E
        
        S
        
        T
        
        E
        
        L
        
        Legal
        
        1 more item...
        
        Ecological
        
        The weather and climate change
        
        1 more item...
        
        Technological
        
        New technologies create new products and new processes
        
        Ex: Online shopping, bar coding
        
        Social/ culture
        
        Demographic trends, values and culture and individual aspirations and expectations
        
        Economic
        
        Taxation changes, economic growth, inflation and exchange rates
      - Political
        
        Goverment policy, corruption, political stability, tax policy..
    - - P
        
        E
        
        S
        
        T
        
        E
        
        L
        
        1 more item...
        
        Favorable geographical location
        
        Tropical monsoon climate
        
        Facing some road difficulties in mountainous provinces.
        
        Technology is making product distribution easier
        
        Developing its digital marketing and selling methods.
        
        Leveraging ' People Data Centres ' to understand consumer behaviour Environmental
        
        VN is a country with freedom of religion, except for some cases related to their culture.
        
        Vietnamese like to consume new products, prefer foreign goods
        
        Vietnam's Economic Growth is increasing, but not really sustainable
        
        Per Capita Income is medium and low
        
        Both adapting products to the locality and offering reasonable products in the market
        
        Political stability
        
        Positive outlook on foreign direct investment
- - - - service quality is undifferentiated
      - if empty seats, lost revenue
      - low barriers to entry
        
        no scale or scope economies
      - price rivalry
    - - stellar profitability
        
        require R&D investment
        
        highly differentiated products
        
        little incentive on pricing
        
        don't have incentive to bargain over price
        
        substitutions ~ generic drugs are closest substitutes
        
        suppliers exert little bargaining power
      - Conclusion
        
        Five Forces framework ~ focus on structural attributes that can create more or less competition over industry's potential
- - - - Firm's conduct
        
        Performance
        
        Economic profits
        
        Advertising
        Pricing
        Capital investment Bargaining
      - Buyers and sellers Barriers to entry Switching cost
- - - - examine each force with developing an assessment
        
        how five forces to access the industry's profitability
  - - - Question to ask: which industry would be more profitable? same profitability?
        
        Let's think about "Hiking on mountain and come across a lake"
        
        Water in the lake is being held in place by five forces
        
        What if one of the dams is being leaked, it means water from the lake may drain away (Wouldn't matter the remaining four are strong)
        
        The weakest of five as PIVOTAL force for industry profitability (Build up the weakest dam so profits may increase)
    - - yield management, reducing the need to slash prices to fall the empty seats (few major mergers)
    - - compliments ~ conceptual opposite of substitutes
        
        cooperation with compliment producers may get potientail for competition
  - - - it's possible to affect more than one force
      - differentiation affect both entry barriers and rivalry
      - Last but not at least, to stop after evaluating each of the five forces and not evaluating overall industry profitability
- - - - obesity and diabetes
        
        upstaged
- - - - strong following of brand loyal customers
      - high spending on advertising
    - - manage a network of bottlers
      - Conduct negotiations with major retailers, restaurants and suppliers
- - - - E.g of complimentors: Intel and Microsoft, Mobile phone apps.
        
        Suppliers and buyers
        
        Substitute products or services
        
        Competitors
        
        Complimentors