A star in the national beverage industry Company strategy and risk management analysis

1. Analysis of potential entrants

Juice drinks industry is the key development industry of the Eleventh Five-Year Plan, the state issued the relevant policies for the industry to bring great opportunities, especially in recent years, the level of consumption and nutritional concepts of health, but also the development of the juice soft drinks industry has laid a very good foundation, which attracted a lot of new entrants to join the industry.

And the new entrants for Huiyuan juice drinks, the relative threat is still not too big, relative to other industries, although the cost of the product itself is not high, but Huiyuan's production and operation over the years, has formed more production lines, and the distance from the market is relatively close to reduce the cost of transportation, has a clear advantage of scale, and has been recognized by many dealers, agents, has its own distribution Channels, for new entrants to invest a lot of money to build factories, but also to create a brand, the need for a lot of advertising investment, and gradually develop their own marketing channels, is somewhat difficult.

The counterattack of existing enterprises in the industry. Juice drinks huge market development potential, attracting more and more new entrants, market leaders to use the existing advantages of resources to counterattack, such as the control of raw materials, increase the cost of new entrants. Control of terminal sales, blockade of competitors, increase the cost of sales of rivals, etc., the formation of barriers to entry.

This for Huiyuan Juice, to establish a high degree of customer loyalty is extremely important, for such a large-scale enterprises, one word and action are extremely important, the enterprise should be recognized as a national industry for many years, Huiyuan still has a good reputation, should be more to grasp the quality of the product, the development of a good corporate culture, such as more investment in public welfare, etc., to expand brand awareness! The company's brand awareness, so that it will not be impacted by new entrants, and should occupy a greater degree of sales channels, now a wide variety of beverages, so as to reduce the threat from new entrants to a greater extent, and have a more loyal customer base.

2. The bargaining power of the supplier

Huiyuan's product direction is mainly for fruit and vegetable drinks, China as a large country of fruits and vegetables, the bargaining power is still relatively strong, the types and quantities of fruits and vegetables are relatively large, the choice of a larger margin, due to the provision of the product is not unique, the switching cost is not too high, and because Huiyuan is a large enterprise, the amount of procurement needed to be larger, for the fruit farmers is a larger. larger, more important orders for fruit farmers, and therefore, necessarily have a strong bargaining power.

From the supply of raw materials, China is rich in fruit resources, many fruit juice beverage companies have their own production base, the supplier bargaining power is not strong. However, with China's low-cost, high-quality, highly competitive juice into the international market, attracting a large number of domestic and foreign capital to the industry aggregation. On the one hand, a large amount of capital investment over the years, so that China's concentrated fruit juice overcapacity, the lack of supply of raw materials led to the purchase price increases, the enterprise production costs increased. On the other hand, the reduction of profits and require enterprises to reduce production costs, and cost reduction is the most effective way to reduce the purchase price of raw materials, suppressing the purchase price will lead to the interests of farmers to be harmed, and seriously damage the production factors of juice production enterprises, resulting in the gradual loss of competitive advantage of the industry. In addition, PET bottles used for packaging, with a small unit value, light weight, large volume, the producers of centralized use of the characteristics, making its transportation costs higher, once led to PET suppliers bargaining power.

3. Bargaining power of buyers

In the face of a wide variety of beverage products on the market, available to consumers to choose from a wide range of manufacturers and types are extremely large, low cost products, so the difference between the price is small, and only need to pay a small conversion costs can be achieved. To further segmentation of the consumer population, like juice drinks are mostly women, children also prefer carbonated drinks, and the main consumer concentrated in the city, according to the taste of the Oriental people, more inclined to orange juice and apple juice, the sales of the juice industry in the past few years was a high growth trend, but also mainly because of the people for the importance of the concept of health, the drink contains trace elements and vitamins, so it should more Enhance the advantages in this regard to enhance the bargaining power in front of consumers, in addition to more consumers in front of health, reduce the price requirements.

4. The threat of alternative products

With the improvement of living standards, people have higher requirements for the quality of life, for drinks, not satisfied with the basic functions, and put forward in the health of more functional needs, so in addition to diversification, Huiyuan need to be on their own products, more perfect function on the demand for more features. In addition, in recent years, due to the prevalence of the concept of environmental protection, consumers are more inclined to choose paper packaging products to replace the harm of non-biodegradable plastic, no doubt in recent years, the rapid development of dairy products, carbonated beverages and so on have occupied a large market share, so Huiyuan need to be in the taste and so on, the nutritional aspects of the *** with the proceeding to be able to fight with it.

If the price of alternatives is low, the price ceiling of juice drinks can only be at a lower level, which limits the revenue of juice drinks. The more attractive the price of the substitute product, the greater the limiting effect and the more pressure it will pose on the juice drink market. This will intensify competition in the industry and companies must be aware of the threat of substitutes. Leading brand development with accurate image positioning. Accurate image positioning is the foundation of successful brand management, consumers choose a brand, precisely because its image positioning meets the psychological needs of consumers. Throughout the juice drink market, successful enterprises, Huiyuan represents 100% juice, a good management of a class of products, the use of which to create a brand culture, to convey the concept of enterprise, and then, and then use the product image has been firmly established and brand culture to open up new markets, so that instead of playing a multiplier effect.

5. Competition in the same industry

The number of competitors in the same industry, and with the improvement of consumption levels, the juice beverage industry into a period of rapid development, there is no obvious brand advantage, most of them are just the price of the competition, and the existence of a relatively strong large-scale enterprises, the competitiveness of the industry is not a big gap between the cost, with the continuation of price wars, the industry's profit margins continue to decline, at this stage of the growth rate. Profit margins continue to decline, the growth rate at this stage there is no obvious trend of growth, so it shows more intense competition, it can be seen that the concentration trend of the juice drinks market is rising significantly, and currently presents a monopoly competition market structure. The product substitutability between different enterprises in the market is strong, and the position of industry leaders is not too solid and easy to be replaced. Competition is fierce, but there is more room and opportunity for development. There are very many brands and types in the juice drink market, and the advertising efforts of each brand are strong, so the competition is relatively fierce, but from the point of view of the product life cycle, the juice drink market is currently in the growth stage, and there is huge room for development. From the market share point of view, there is no one brand has absolute advantage and become the dominant brand. Huiyuan need to comprehensively analyze the market after the development of a reasonable development direction, and further characteristics of the expansion of market share, is expected to be more severe competition in the industry in the future.