Compared with the rest of the world the UK beer consumption was on rank 5 in 2001 what shows its significance. Within the overall market value of 15,473.8 million pounds (2004), premium lager was the leading segment with a value share of 39.2 %. All in all 5,454.7 million litres of beer have been sold in 2004.
Below you will find a Porter`s five forces analysis of the UK beer industry which deduces the attractiveness of the industry from its structure. The structure itself influences the corporate strategy which is responsible for corporate success finally. Attractiveness in Porter`s view depends on five forces which influence an industry. Porter says that “the collective strength of these forces determines the ultimate profit potential of an industry.” (Porter 1980, p. 21) In order to detect the importance of a single force Porter provides some indicators which will be highlighted.
I have chosen this external analysis tool because it covers a wide range of important influences affecting the UK beer industry. To anticipate the later shown results it will become ob-vious that some of the forces provided by Porter have a massive effect on the industry especially intensity of rivalry and bargaining power of buyers. Companies acting in the industry have to have good knowledge of the industry structure and its threats to defend or favourably influence it to stay competitive and earn profits. The stronger the forces are the more the industry becomes unattractive.
Inhaltsverzeichnis (Table of Contents)
- A) Introduction
- B) Porter's Five Forces Analysis
- 1. Intensity of rivalry
- 2. Bargaining power of buyers
- 3. Bargaining power of suppliers
- 4. Threat of entry
- 5. Threat of substitutes
- C) Critique of Porter's Five Forces
- D) Conclusion
- E) Appendix
- F) References
- G) Bibliography
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This analysis aims to apply Porter's Five Forces framework to the UK beer industry to assess its attractiveness and understand the structural factors influencing corporate strategy and success.
- The intensity of rivalry among competitors
- The bargaining power of buyers and suppliers
- The threat of new entrants and substitute products
- The influence of industry structure on corporate strategy
- The impact of these forces on the profit potential of the industry
Zusammenfassung der Kapitel (Chapter Summaries)
The "Introduction" chapter sets the context by highlighting the significance of the UK beer market and provides an overview of Porter's Five Forces framework. The analysis begins with a detailed examination of the "Intensity of rivalry" in the UK beer industry, highlighting the presence of dominant players, market maturity, and strategies employed by both large and smaller breweries to differentiate themselves.
Schlüsselwörter (Keywords)
This analysis primarily focuses on the UK beer industry, utilizing Porter's Five Forces framework as a lens to understand the structural forces influencing competition and profit potential. Key concepts explored include industry structure, rivalry, bargaining power, threat of entry, threat of substitutes, differentiation, and brand marketing.
- Quote paper
- Mark Dinkhoff (Author), 2007, UK Beer Industry Analysis, Munich, GRIN Verlag, https://www.grin.com/document/89692
