The uncertainty, inflation, legislation and import duties have adverse affect on raw material for the brewery, as price of raw material fluctuate constantly. Fullers can get more advantage by utilizing the local raw material as much as possible. Secondly, the rising trend of health conscious lifestyle adopted among the drinkers might lose the customers in the long run. As Fullers operates in niche market, so there won’t be a massive loss, but after a longer period, there might be noticeable decrease in sales. As Fuller also operates in its hotel chains, so will not be affected much by this consumer trend.
Alcohol seems bypass the fact that it’s still a drug but it’s socially acceptable. In spite of this, in the long run many problems occur with the consumption of alcohol like high blood pressure, different type of cancer, permanent affect on vital organs, sexual dysfunction etc. (http://www.gdcada.org) where company needs to invest and new products to be created which affects less to the customers. Recent Government survey states that underage drinking is increasing every year and it is increasing more in the age group of 14-15 (office of children commissioner). Fullers have 362 pubs in UK, which need to tighten their rules to counteract underage purchases. (Think 25 not 18 campaign).
Technology affects very little in brewery industry as ale production is very much traditional. Unless new technology is introduced by competitors for cheaper production, then it needs to be considered by Fullers.
3.2 Porter’s 5 forces analysis evaluation.
Porter’s 5 forces analysis allows us to understand the overall market and its forces affecting the Fullers, as well give us a better understanding where company sits in.
According to porter’s 5 forces analysis (appendix 2) the evaluation figured out is that many suppliers are available in market and there is low differentiation in raw product, moreover suppliers have more of a need of fullers than fullers need them....
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