Tuborg

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TUBORG|
BEER|
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Globsyn Business School|
11/11/2012|
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The Project Members are enlisted below:-

Name Enrollment No.
Prasanta Paul 030101001
Sambit Das 030101006
Amit Kumar Yadav 030101008
Sandeep Roy 030101017
Anand Kumar Jha 030101021
Tanumoy Saha 030101031

Explanation of Porter’s Five Forces Theory a the Particular Company:: Threat of New Entrants
Threat of New Entrants
Bargaining Power of Buyers
Bargaining Power of Buyers
Industry Rivalry
Industry Rivalry
Threat of Substitute
Threat of Substitute
Bargaining Power of Suppliers
Bargaining Power of Suppliers

This model was made by Michal Porter, a professor at Harvard Business School. He identifies 5 basic forces in connection with the organization. We have chosen to use this model because we want to examine the forces influencing the company. The model has been subject to some criticism with regards to the model being too static, whereas the competitive environment is changing constantly, but it still provides an overview of the external environment. Industry Rivalry:

In relation to the competition on the Indian market, Kingfisher must be considered the most direct competitor. The competition in the Indian market is fierce though, and the big beer companies like United Breweries Limited and SABMiller want to sell to the Indian consumers, since they consider this an important market. Keeping up with trends is important. Thus, Tuborg have to follow the development in the market and invest heavily in advertisement as it is doing and innovation such as introduction of “Tuborg Zero” is needed

to be perform so that people with every mind set can have their choice of product available and marketing campaigns to maintain their market shares around India, as this is one of the most essential markets for Tuborg. Threat of New Entrants:

When entering the beer production market, the entry barriers are relatively high and a lot of capital is required to get started in the industry. Capital is required to purchase plant, equipment and machinery and your product needs to be marketed for it to sell. This requires a heavy capital investment from the start that can take years to regain. Besides this you will need connections in the industry and a well-established distribution network for your products to be delivered. This is very time consuming and it might also be a long process when you want to build a good relationship with your customers. There are already many well-known and established beer brands and one can assume that consumers tend to buy products that are made by a brewery that they are familiar with. Tuborg recently launched its “Tuborg Zero” which is a non-alcoholic beer. Thus the type of market share Tuborg along with Carlsberg is grabbing, can ensure their place in the higher rankings in the future as per market share is concerned and restrict new entrants to enter the market. Bargaining Power of Buyers:

When looking at the buyer’s bargaining power we assume the buyers to be supermarkets, bars, restaurants and Foreign Liquor Off-shop as well as On-Shop buying directly from distributors of Carlsberg because Tuborg is hereby distributed altogether with Carlsberg, as we find it very unlikely for consumers to buy directly from Carlsberg. Since there is a Head to Head competition of beer in India, the bargaining power of Buyer is a vital area to think about. If the buyers are not satisfied in terms of incentives and percentage, there will be problems in introducing the product to the end users. These buyers are the ones who introduce the product to the end users and make it available for final consumption. Since Tuborg is introduced in the year 2009 in India, therefore to earn market share, it has be present in every possible outlets. It would be catastrophic for Tuborg to become unpopular among the buyers. Threat of...
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