Industry Analysis of Britvic Assignment

Industry Analysis

Table of Contents
INTRODUCTION...........................................................................................................................1
a. Analysis of the macro environmental factors using Porter's five forces model......................1
b. Value chain analysis of the firm..............................................................................................3
c. Explanation of appropriate adaptations of the selected firm...................................................5
d. Reflection on the usefulness of an academic model...............................................................6
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Modern business environment is being defined as both internal along with the external
factors which impacts upon businesses to a range of extent (Abidi, De Leeuw and Klumpp,
2015). Basically both of these factors consist with a range of elements which could be from
customer's expectations, market trends, social trends, employees, innovation in technology,
economical changes, including owners and so on. Along with this, business environment
basically needs proper analysis when it comes to enter a whole new market or to enhance the
sales of existing products and services.
Specifically, organisation which is being chosen i.e. Britvic which is coming under soft
drink sub sector of United Kingdom. Company has headquartered in Hemel Hampstead. Away
with this, essay is going to be enclosed with identification of external macro factors that affect
business, a detailed analysis of micro environmental factors considering the Porter's five forces
model and lastly, a detailed explanation has been given of appropriate adaptations of business
organisation which will aid in grabbing the benefits in much more effective and efficient manner
than the existing ones.
a. Analysis of the macro environmental factors using Porter's five forces model
Organisations within the soft drinks sub sector basically operates considering the
surroundings which mainly stays enclosed with a range of different factors. These elements
could be considered as macro factors (Bosch-Mauchand and et. al., 2013). Basically, there are
two tools which can be utilised in order to analyse the external business environment within the
Soft Drinks sub sector and these PESTLE Analysis and Porter's five forces model. In present
context, in order to measure the current environmental influences within the United Kingdom of
Soft Drinks sub sector, Porter's five forces model has been utilised.
Porter's five forces model :-
This being considered as one of a crucial model which basically aid in identifying the
exact situation of external environment. This consist with five basic forces which influence or
impacts upon different range of strategies or products and services of a business organisation.
Considering this approach, it can easily be said that a company might gain competitive
advantages. On the other side, this type of a model may also aid in analysing the whole sector or
a sub sector which might aid a business organisation in taking right decisions as per the
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requirements. Since Porter's five forces model, is consist with five forces which are specifically
utilised to examine or to identify the competitive intensity within a business sector, attractiveness
and profitability within a sub sector and so on (Bunse and et. al., 2011). Specifically, these five
forces are : competition in the industry, potential of new entrants into the industry, power of
suppliers, power of customers and threat of substitutes and these are discussed in a detailed
manner regarding UK's Soft Drinks sub sector, underneath :-
Competition in the industry- Basically, this is being considered as one of a crucial force
within Porter's model, which consist with a range of competitors and helps in identifying the
competitiveness among different organisations that are coming under an industry. If it is talked
about power of companies within UK's Soft Drinks sub sector, is lesser when the number of
rivals are larger to an extent. Under this, both the buyers and suppliers look forward to identify
competitive level within a sub sector at the time of offering them with different range of services
among lower prices (Burns, 2012). It is being found that, within the United kingdom's Soft
Drinks sub sector competitive rivalry is very low, which means a company like Britvic may
consist with a power to charge individuals (customers) with higher prices of different range of
products.
Potential of new entrants into the industry- Another crucial force where power of a
business organisation basically gets affected due to new entrants within a market. It is being
found that an organisation cannot afford to adopt all the changes within a industry that are
coming as it requires heavy investments. Therefore, it is may be possible that an organisation's
reputation and its market share might get affected. If it is talked about United kingdom's Soft
Drinks sub sector, it is not really very easy for a company to enter this market as it consist with a
range of barrier to enter. Due to Brexit, UK has made itself as an upon trade centre, which now
basically could be considered as one kind of an opportunity, which many business organisations
has grabbed. Therefore, it can easily be said that for a company like Britvic which is performing
operations in United kingdom's Soft Drinks sub sector that, there is a high risk which is
presented in front of Britvic within United kingdom's Soft Drinks sub sector.
Power of suppliers- This type of force basically shows easily suppliers can drive up the
cost of inputs. This is affected by a number of suppliers of key inputs of new service or good,
uniqueness of these inputs, cost of the company in switching from one supplier to other (Charles
and Zegarra, 2014). When the number of suppliers within the United kingdom's Soft Drinks sub
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