What is manufacturing? The production of tangible things planned to be sold or leased for final use or consumption or the production of tangible things pursuant to a contract with the Federal Government. This can be done by mechanical, physical or chemical means. Plants, factories and mills that use power-driven machinery and equipment are typical in the manufacturing industry. However, it also includes home-based businesses that make hand-crafted goods, as well as bakeries, candy stores and custom tailors that produce and sell their goods onsite. The manufacturing industry is a great tool that drives the nation's economy; it can eliminate the unemployment rate of the country and increase the GDP at the same time. In the past decade it has been an instrument for economic growth for some countries. They own a large share in the market. They are the ones who utilize the use of technology that is available. Scientific and technological breakthroughs are stirred by linking creative minds. This things will boost up foreign investment in the country. In few years time, the Employment in manufacturing is likely to grow at about the same rate as in the rest of the economy during the next few years. In terms of GDP, the industry is anticipate to slightly outpace mainly economic growth. Industries within manufacturing that are forecast to show stronger-than-average growth include food, beverage and computers, electronic products and other forms of manufacturing.
I. Threat of new Entry
New entry barriers are very low since manufacturing industry is very big. It is expensive to enter the industry since the technology being used is advance. Many threats to long run survival come from companies that do not yet exist or have a presence in a given industry or market. The threat of new entrants forces top management to monitor the trends, especially in technology, that might give rise to new competitors. II. Competitive Rivalry
The large number of firms makes the Competitive Rivalry Intensive. The low switching cost of customers increase the rivalry since they easily switch from one brand to another. In mature industries, existing competitors are not much of the threat: typically each firm has found its "niche". However, changes in management, ownership, or "the rules of the game" can give rise to serious threats to long term survival from existing firms. III. Supplier Power
The supplier power is weak since there are many players in this industry. There is a small factor of backward integration in which the suppliers go directly to purchasers. Suppliers with access to key or limited resources, or who dominate their industries, may exert undue influence on the firm. Many firms seek to reduce their dependence on a single firm to limit the suppliers' bargaining power. IV. Buyer Power
The buyers possess a credible backward integration threat. Customers can grow large and powerful as a result of their market share. For example, Wal-Mart is the largest customer for consumer package goods and often dictates terms to the makers of those goods -- even a giant like Proctor & Gamble. V. Threat of Substitutes
It exists due to the fact that product's demand is affected by the price change of a substitute product. To the extent that customers can use different products to fulfill the same need, the threat of substitutes exists.
A.S. Watson Group was established in 1828 and through the years has evolved into an retail and manufacturing business, operating in 36 markets worldwide. As of today, A.S Watson group is operating over 7,900 retail stores running from health & beauty, luxury perfumeries & cosmetics to food, electronics, fine wine and airport retail arms. They are also an established player in beverage industry. They can provide a full range of beverages from bottled water, fruit juices,...