The brewing industry in 1985 can be analyzed using Porter's five competitive forces: threat of new entrants, bargaining power of suppliers, bargaining power of buyers, substitutes and rivalry among existing competitors. All five competitive forces jointly determine the intensity of industry competition and profitability. Furthermore, the five forces narrow in on why the brewing industry became more concentrated and key features defining industry success. In the brewing industry, barriers to entry were high. Fixed costs increased …
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…the growing population of drinkers who consumed at home. The analysis presented above using Porter's Five Forces Model clearly highlights the brewing industry trends where barriers to entry are low, bargaining powers of suppliers is medium, bargaining power of buyers is high, substitutes are low, and rivalry among existing competitors is high. These trends provide a basis as to why the brewing industry became more concentrated in 1985 and define key success factors in the industry.