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Essay / ospm assignment section 4 - 687
global call. These factors show that the industry enjoys high global appeal, with above-average financial stability and growth opportunities. Although growth opportunities are above average, continued mergers and acquisitions will eventually result in lower growth as a market share cap is reached. Competitors will attempt to outwit each other to increase their limited share. The analysis concludes that the type of business or industry is desirable with an average rating of five out of seven possible. The overall strength of the industry is directly related to the stability of the environment. Instability within an external environment would have a negative impact on the strength of the industry. The criteria and rating of the external environment are determined using a combination of processes. Three of the measured factors are determined by the preceding Porter's Five Forces analysis. These forces are: the threat of substitutes, the bargaining power of the customer and competitive advantage (Porter, 1998, c1980: 447). The last two factors are: the inflation rate and the price. elasticity of demand. These factors have an economic impact on the company's ability to make a reasonable profit. The threat of substitutes is particularly high within the industry, with hot drinks, soft drinks and other alcoholic beverages competing to meet consumer demand. Competitive rivalry is also intense, with few competitors offering similar products and capabilities competing in a declining market. Added to this is the fact that the brewer cannot deal directly with the retailer or consumer, which increases the bargaining power of distributors. The overall results indicate that the environment in which the company operates is very competitive with disadvantages partially offset by price controls and low entry...... middle of paper ......anburn, J ., 2014. Business . [Online] Available at: http://business.time.com/2012/07/03/one-company-will-soon-control-half-of-the-us-beer-market/[Accessed February 20 2014].Stanford, DD, 2014. Business Week – Articles. [Online] Available at: http://www.businessweek.com/articles/2014-01-30/miller-fortune-a-bourbon-like-beer-targeted-at-whiskey-drinkers [Accessed February 18, 2014 ]. Themba, M., nd SAAFoST - Home - Events - 2013 - SAAFoST Congress 2013: Congress Presentations. [Online]Available at: http://www.saafost.org.za/Events/BRANCH_All/2013/Oct7-9/CongressPresentations/SAAFoST%20Congress%202013%20-%20Final%20Distribution_PDF.pdf[Accessed February 21 2014].Wyatt, E., 2014. Dealb%k. [Online]Available at: http://dealbook.nytimes.com/2013/04/19/anheuser-busch-reaches-deal-with-antitrust-regulators/?_php=true&_type=blogs&_r=0[Accessed February 20 2014].