Case Study Of Porter's Five Forces Model Of Angostura Limited

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Register to read the introduction… * Smaller distribution centres primarily for Port of Spain. * Endeavour into a wider selection of world recognized branded products. * Facilitate further sales through new distribution channels such as online sales or an outlet at the airport. * Developing tourism sector. | Threats * High levels of competition * Current implementations on alcohol prices and taxes * High levels of imported items into the country. * There are illegal industries selling alcohol cheaper. * Availability of substitute products such as the de-criminalization of marijuana. * Swift changes in taste and preference of consumers with increasing trends and seasonality. …show more content…
Forces | Strength | Observations | BARGAINING POWER OF SUPPIERS | Medium | * Competitive pressure is relatively low however, switching costs are high. * Rising raw material costs. * Molasses is being imported from Fiji and the Dominican Republic. (www.Trinidadexpress.com) | THREAT OF SUBSITUTE PRODUCTS | Low | * The decriminalization of marijuana. * Substitute products because of rising health fears of the consumers. | BARGAINING POWER OF CUSTOMERS | Medium to High | Buyers can be placed into three categories:. 1.- Distributors/ wholesalers is essential in the market channel for Angostura products for e.g. Stackhouse has two prime locations in South Trinidad.- Wholesalers can influence market share through marketing, and promotions. * 2.Retailers/ Restaurants: The prime social location in Trinidad and Tobago, Ariapita Avenue is an economic model and driving force in sales of Angostura products. (guardian.co.tt) * 3. Consumers: One of the ultimate drivers for both the distributor and retailer channel. * Creativity, experimentation with unusual flavours, trends are what pushes users to purchase alcohol. * Taxes excised impacts the affordability of the products. …show more content…
Customers make judgements about the organization based on its physical evidence. Angostura Limited is located on a 20 acre complex and includes a state of the art rum distillery, administration offices, a museum, an art gallery, wine and spirits retail outlet, dining room and hospitality suites (www.angostura.com). The property welcomes all consumers respectively with great notice of the new product being available at Angostura both on the exterior and the interior using proper signage, lighting equipment, creative colours and extensive

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