Five Forces Of Coffee

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The Five Forces Model (developed by Dr. Michael Porter of Harvard University) is a powerful tool for evaluating the competitiveness of your business environment and for identifying your business‘s potential risks and profitability.
The Five Forces Model Analysis is assumed that to analyze five areas of competition in the marketplace. It is analyzing the elements:
- Competitive Rivalry
- Bargaining power of Supplier
- Bargaining power of Buyer
- Threat of New Entrants
- Threat of Substitutes
Competitive Rivalry:
According to statistical metrics in six major cities (only branded products), instant coffee current market share accounts for 62% in volume and 65% in value compared to 38% in volume and 34% in value of branded roasted coffee. Particularly in Hanoi market and four major cities (Hai Phong, Da Nang, Nha Trang, Can Tho), the proportion of instant coffee accounts for the majority (91%) compared to roasted ground coffee (73%). In the roasting ground coffee market, besides absolute leading in comparison with rivals (> 80%), this product development strategy is heavily dependent on inputs (soil, the macro development policy in general, international …show more content…

NesCafe is the leader with market share accounted for nearly 60% of the market. With the absolute position of NesCafe, consumers were imposed to quality, taste because there were not many other options. Standing behind NesCafe was VinaCafe with 38.45% market share. The remaining 5.6% of the market share is reserved for other brands. However, since Trung Nguyen Joint Stock Company launched G7 Instant Coffee on November 23, 2003, the Vietnamese market since then began to play out more actively as Trung Nguyen repeatedly launched marketing strategies to attract many customers and officially announced face-to-face with

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