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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.
Boon Rawd Brewery Co., Ltd. TOWS Matrix
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
High production costs of Singha beer
Singha beer is priced higher than economy beers
Taxation according to alcohol degree
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)
Total ban regulations on alcoholic drink advertisements
Adverse economic recession...