The threat of new entrants

Potential competitors include companies that are not currently competitive but still have possibilities in
the future. The emergence of potential competitors is accompanied by the threat of reducing the
market share of existing businesses in the industry, so the competition in the industry is even fiercer.

For example:

Before that, Vietnam was an attractive market for soft drinks. When consumers, big brands such as
Coca-Cola, favor carbonated soft drinks Pepsi, number-one… are dominant.

In 2006, Tan Hiep Phat launched a zero-grade green tea product, making the taste of consumers shifting
from carbonated soft drinks to non-carbonated soft drinks. According to consumer statistics, in 2007,
the demand for healthy, natural water products increased from 30% to more than 50%. Since then, a
series of other competitors appeared and launched new products such as C2 of URC, 100 of Tribeco….
Slightly reduce the consumption of the industry's original products such as Coca-Cola, PepsiCo ...
However, at present; the trend of consumers is changing to prefer sugar-free and calorie-free
carbonated soft drinks. This trend seems to make Pepsi’s golden age return when the launch of ‘’calorie-
free’’, or ‘’salty lemon’’ with the advertising image of the popular Korean girl group today (BLACK-PINK).

Therefore, it can be seen that the beverage industry always opens an opportunity for new competitors
to enter the industry. That is: the ability to enter the industry is high, and the tastes of consumers are
not difficult to change. Importantly businesses can:

+ Predict customers' tastes

+ Product promotion campaign

+ Distribution channel system and factory to save costs

However, in terms of economies of scale (including the cost-reduction effects resulting from mass
production of standardized products), new competitors may be at a disadvantage compared to firms.
Because of the high cost of R&D, Marketing and production costs, the cost is high, resulting in less profit.
In addition, new businesses also have to accept risks in large-scale production and investment risks.

Ví dụ:

Trước đó, Việt Nam là thị trường hấp dẫn của nước giải khát. Khi nước ngọt có gas đang được người tiêu
dùng ưa chuộng, các nhãn hàng nước lớn như coca-cola, pepsi, number-one… đang chiếm ưu thế.

Năm 2006, Tân Hiệp Phát cho ra mắt sản phẩm trà xanh không độ, khiến thị hiếu của người tiêu dùng
được chuyển từ nước ngọt có gas sang nước giải khát không gas. Theo thống kê người tiêu dùng, năm
2007 nhu cầu tiêu thụ sản phẩm nước tốt cho sức khỏe, có nguồn gốc từ thiên nhiên tăng từ 30% lên
hơn 50%. Từ đó hàng loạt các đối thủ khác xuất hiện và tung ra thị trường các sản phẩm mới như: C2
của URC, 100 của Tribeco…. Khiến cho lượng tiêu dùng các sản phẩm original của ông lớn của ngành như
coca-cola, pepsico,... giảm nhẹ. Tuy nhiên hiện nay, xu hướng người tiêu dùng thay đổi chuyển sang ưa
thích những sản phẩm nước giải khát có gas không đường, không calo. Xu hướng này dường như khiến
thời hoàng kim của pepsi trở lại khi ra mắt pepsi không calo, hay pepsi vị chanh muối với hình ảnh quảng
cáo của nhóm nhạc nữ Hàn Quốc nổi tiếng hiện nay (BLACK-PINK).

Vậy: có thể nhận thấy rằng, ngành nước giải khát nói chung luôn mở ra một cơ hội cho các đối thủ mới
gia nhập ngành. Đó là: khả năng gia nhập ngành cao, và thị hiếu của người tiêu dùng là không khó để
thay đổi. Quan trọng các doanh nghiệp có thể:

+ Dự đoán được thị hiếu của khách hàng

+ Chiến dịch quảng bá sản phẩm

+ Hệ thống kênh phân phối và nhà máy sản xuất sao cho tiết kiệm chi phí

Tuy nhiên xét về tính kinh tế theo quy mô ( bao gồm cả hiệu quả giảm chi phí có được do sản xuất đại
trà những sản phẩm được tiêu chuẩn hóa) , các đối thủ mới có thể sẽ bị thiệt thòi so với các doanh
nghiệp lớn vì chi phí R&D, Marketing và chi phí sản xuất khiến giá thành cao từ đó lợi nhuận ít. Ngoài ra
các doanh nghiệp mới còn phải chấp nhận rủi ro trong việc sản xuất quy mô lớn và các rủi ro về vốn đầu
tư,..

The threat of the newcomers

Potential competitors include companies that are currently not able to compete, but that are still
capable in the future. The presence of potential competitors is accompanied by the risk of reducing the
market share of existing businesses in the industry, so the competition in the industry is even more
fierce.

1. Advantages

a. Development potential

- Soft drink is a commodity in the FMCG industry, it has a large consumption and is in the top of the
products with the most sales volume in this industry. In the world, this is also the product that is
invested and participated by many famous brands, in many countries, this is the item with the average
number of users per day at nearly 50%.

- The first place is the US with 2 times higher than the number 2 Japan is Japan (176,053.8 million USD
compared to 86,480.8 million USD). Ranked in the following positions are: China, Brazil, Germany,
Mexico ... Also according to statistics, the average beverage consumption of the American people
consumed 216 liters / year, the country followed by Ireland and Norway. in particular fruit juice
consumption was led by Canadians with 52.5 liters / person / year, followed by the US and Germany.

And in Vietnam, according to the available statistics, this industry has extremely high growth numbers.
When the average Vietnamese consumes over 23 liters of beverage / person / year. In addition, 85% is
the figure that beverage companies are holding the production rate in the entire beer and beverage
industry. In 2020, Vietnam's beverage market has an impressive growth rate of about 8.3 - 9.2 billion
liters / year.

b. The tastes of consumers

Before that, Vietnam was an attractive market for soft drinks. When consumers, big brands like Coca-
Cola, prefer Pepsi, number-one ... are dominant.
In 2006, Tan Hiep Phat launched a non-carbonated green tea product to the market, causing the taste of
consumers to change from carbonated soft drinks to non-carbonated soft drinks. According to consumer
statistics, in 2007, demand for healthy natural water products increased from 30% to more than 50%.
And now tea is a favorite item here, accounting for 36.97% market share. It can be seen clearly why,
Vietnam is an East Asian country and tea is a traditional drink from a long time ago that has been
ingrained in the minds of Vietnamese people. Energy drinks took the next position with 18.28%, fruit
juice was 10.91% and mineral water was 5.45%.

Since then, a series of other competitors appeared and launched new products such as C2 of URC, 100
of Tribeco…. Reducing consumption of original products of the industry such as Coca-Cola, PepsiCo ...

However, at present; Consumer trends are changing to prefer sugar-free and calorie-free carbonated
soft drinks. This trend seems to make Pepsi's golden age return when launching a `` calorie-free ''
product, or `` salt lemon '' with the advertising image of the popular Korean girl group today (BLACK
-PINK).

Therefore, it can be seen that the beverage industry always opens up opportunities for new competitors
to enter the industry. That is: the ability to enter the industry is high, the tastes of consumers are not
difficult to change.

2. Difficulty

a. Easy to join but hard to stay

Kido, Coca-Cola is one of the names that also have strong growth and occupy a certain position in the
total market share of this industry. Many Vietnamese brands also focus on exploiting and entering this
market, but only at a small scale. Consider the case of "Xa Xa Chuong Duong", this product once
dominated the southern market, but now it has become forgotten and its market share is almost 0%.

Although it is a delicious piece of cake, the race for market share requires many factors that, if it fails,
the business will easily tire. The issue of food safety and hygiene is an issue that is of great concern to
the public, so in order to build their brand, The new entrants must put "commitment to quality" on top
priority.

In addition to brand concern, currently on the market, users are interested in many things other than
branding issues. Consumers tend to start ch

b. Economical by scale

- in terms of economies of scale (including the cost-reduction impact of mass production of standardized
products), new competitors may be at a disadvantage compared to firms. Because of the high cost of
R&D, marketing and production costs, the cost is high, leading to less profit. In addition, new businesses
must also accept risks in large-scale production and investment risks.

c. Distribution channel system, factory and supplier

- The distribution of the distribution channels and the manufacturing plant is also a difficult issue for
new competitors to enter the market, as most of the expensive and favorable locations are occupied by
the companies that are ahead. . The same goes for working with suppliers. Normally, new entrants to
the industry with experience are still young, so it is not easy to gain advantages when exchanging prices
with suppliers.