Porter Five

Forces
Model

Overall
industry rating:
Threat of new
entrants.
Bargaining
power of
buyers.

High

Moderate

Low
X

Threat of
substitutes.

Bargaining
power of
suppliers.

Intensity of
rivalry among
competitors.

Threat of new entrants

Threats of new entrants are towards lower side.
The capital needed to build beer manufacturing
facilities and the costs associated with
operating business on a national scale are
expensive.
The cost associated with this highly
controversial industry seek high levels of sales,
thus making the industry more and more
prohibitive for newcomers.
Government regulations are largest factor in
this force.

Bargaining power of buyers

Barraging power of buyers is high.
The quantity of alcoholic beverages that a
nation consumes tends to be unaffected
through recession and prosperity while the
quality of the products purchased is directly
related to the disposable income.
A decline in disposable income shifts
consumers preferences away from premiumpriced brand-name products in favour of
lower-priced brands i.e. switching cost is low.

Threat of substitutes
Threat of substitutes is low.
Customer loyalty through brand
awareness.
The advertising restrictions placed on
alcoholic beverage industry in recent
years make it harder to achieve
brand loyalty.

Bargaining power of suppliers

Suppliers power is low.
Products used to brew beer are
inexpensive and suppliers are
numerous.
Intensity of rivalry among competitors
Through the competition is tough, the
kingfisher brand is the one of the
largest supplier of beer, & the third
largest procedures of distilled spirits.