PORTER’S FIVE FORCES

Bargaining Power of Suppliers: Moderate

Manila Water Inc. gets the needed services/products to its qualified/credited suppliers.
Before a supplier would have a chance selling products and services they have to get
accreditation from the company. Manila Water Inc. has a number of suppliers but they
are only limited to those credited ones. Therefore, bargaining power of suppliers is
moderate
Bargaining Power of Buyers: Low
As the biggest provider of potable water in east concession area, no other water utility
could supply such number of consumer for a lower price. In fact, there are water utilities
that get their water itself to Manila Water Inc. and supply the same to their customers.
There may emerge companies that would supply a certain area, but still they could not
cater such number of consumer (1 million households).
Threat of New Entrants: Low
Manila Water Inc. has an exclusive rights to east concession area. Even if a new
competitor emerges, it entails a lot of capital and very costly.
Threat of Substitute Products or Services: Low
Deepwell is another alternative for water but constructing a well is very costly. Plus,
construction of this is not encouraged as they may destroy ground water.
Water rationing is not a smart alternative as it is much expensive compare to Manila
Water Inc’s. Mineral water is another alternative for consumers, this is much more
costly. Many customers may prefer mineral water for drinking but it is only a small
 percentage of what a household consumes. I may say this not affect the company that
much.

Rivalry Among Existing Competitors: Moderate

Although Manila Water Inc’s service area differs from Maynilad’s, it can be considered
that Manila Water are Maynilad’s competitors when there are bids for projects and
acquiring other companies. During the bidding in a water utility in Vietnam, both Manila
Water and Maynilad bid. But it was Manila Water who won the bid. There are other
projects that are still open for bidding that Manila Water and Maynilad engaged in.