Degree of Rivalries: drivers of Power Strategies

1) Degree of Rivalries: Drivers of Power Strategies

Few competitors, low threat 2 The competition in the industry is high. The company could engage in price cutting/ price war against the competitors since the chance for differentiation is very limited or they can also try to promote the image of healthy products or engage in price incentives promotions.

Large size of competitor, high threat 5

Industry sales growth slowly, high threat 5

Easy to expand, high threat 4

Less differentiation, high threat 4

Moderate fixed cost, moderate threat 3

Moderate exit barriers, moderate threat 3

High Intensity of rivalries 3.71

Analysis

The threat of segment rivalry is considered to be High with an average score of 3.71. The competitors in the industry are large-sized company having similar resources, targeting the same customer base, offering non-differentiated product. In addition, the industry has moderate growth rate in terms of sales. With no opportunities for differentiation, the players in the industry compete with each other by lowering the price and engage in price war.

2) Potential Entrants: Drivers of Power Strategies

High economies of scale, low threat 1 The product itself allows no more room for differentiation. However, Tipco could operate or engage in activities with Fruits provider who is protected by the government to promote the quality and increase in sales of Thai fruits. By doing this, Tipco can block new comers by having better publicity and brand image. Also to exploit from the opportunity of Economies of Scale to lower the unit cost as much as they could.

Few product differentiation, high threat 4

High capital requirements, low threat 2

Low cost of switching costs, high threat 5

Difficult access to distribution channels, low threat 5

Low government regulation, high threat 4

Moderate to high threat of entrants 3.5

Analysis

The threat of new entrants for Tipco is moderate with the average score of 3.5. For Food and Beverage Industry, the opportunity for differentiation is very limited which imposes high threat for Tipco. The product does not have any unique characteristic which is an advantage to those who want to enter the market. However, the new comers must be able to generate enough demand to be able to exploit the Economies

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