Signha Beer: Boon Rawd Brewery. Thai Beer Industry with Five-forces and SWOT Analysis, TOWS Matrix, Perceptual Map, Positioning.

Essay by XxploreUniversity, Bachelor'sA+, September 2007

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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...