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1. Problem/Key Issue
How can Boon Rawd Brewery maintain its competitiveness in Thailand's alcoholic beverages market as the legal enforcement of total ban regulations on alcoholic drink advertisements become effective?
Porter's Five Forces Analysis of Beer Industry in Thailand (as Consolidated Industry)
Threat of new entrants - Low
Entry barriers (i.e. huge capital investments in breweries) are high resulting in low threat of new entrants.
Threat of substitute products - High
Other types of alcoholic beverages such as wine, spirit and liquor represent the substitutes of beer, though not perfectly substitutable.
Threat of buyers' growing bargaining power - Low
Wholesalers and agents are considered as buyers for Boon Rawd Brewery in which they have to follow the predetermined prices.
Threat of suppliers' growing bargaining power - Low
Suppliers who mainly provide key ingredients for beer (i.e. hops and bottles) tend to be not powerful since they are neither concentrated nor organized and the costs of switching suppliers are not high.
Threat of intense segment rivalry - High
Beer market in Thailand contains some strong and aggressive incumbents such as Boon Rawd Brewery, Thai Beverage and Thai Asia Pacific Brewery.
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Boon Rawd Brewery Co., Ltd. TOWS Matrix
STRENGTHS In-depth beer industry experience and insight Well-managed and established distribution channels Top quality ingredients used to produce Singha beer Brand image strength associated with "International Thai" identity | WEAKNESSES High production costs of Singha beer Singha beer is priced higher than economy beers | |
OPPORTUNITIES Taxation according to alcohol degree Overseas markets Light beer trend | Offer premium beer (i.e. Kloster) to capture premium segment (S1, S2, O1) Foreign markets expansion (S1, S3, S4, O2) | Develop light beer (i.e. Singha Light) and price lower than Singha (W2, O1, O3) |
THREATS Total ban regulations on alcoholic drink advertisements Adverse economic recession... |