Summary Of Kampar's Five Forces In Food And Beverage Industry

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Threats of new entrants In Kampar, the treat of new entrants in the food and beverage industry is high as the barriers to enter are low. There are many similar products about the coffee and the taste of the product are likely the same. We are hard to break the strong brand without spending heavily advertising. So, it is very important to have an innovative product to attract more customers. Besides that, there are low cost advantages independent of size in the food and beverage industry. Those new industry may have cost advantages that are not related to the size of the company. The existing firm in an industry may have to purchase land when it was less expensive than it is today. Furthermore, there are high capital requirements barriers…show more content…
There are willing to accept the cost disadvantage, if the economics of scale is good. Rivalry among existing firms The threat of rivalry among existing firm in the food and beverage industry is high. The number and balance of competitor in the industry is large which affect the rivalry among existing firm. The more competitors there are, the more likely it is so that it will threaten our business. Besides that, the degree of difference between the product compare with other company is small. The degree of the competition will be strong since there are few differences between the products, it will affect our industry rivalry. The cost of the industry may higher than other competitor, because they may use the good quality of the beans and the fresh food to make their product. Furthermore, in Kampar the growth rate of industry is fast-growth. As the industry is fast-growth industry, there will be weak than slow-growth industry because they want earn back their capital fast as possible and the profit or revenue as much as the industry can do it. The slow-growth industry will be stronger than other industries those who are

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