Essay: Structure of the Industry affecting Competitive Forces

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Essay: Structure of the Industry affecting Competitive Forces

Sample Essay

HOW DOES THE STRUCTURE OF THE INDUSTRY AFFECT COMPETITIVE FORCES IN THE FUTURE?

The future of the soft drinks industry is very bright. However, with the recurring economic recession in the globe, the manufacturers of these drinks need to analyse the global economic trends before making any financial decision. As much as firms globalize, they need to invest in countries that have good economic policies and stable economy. For instance, Middle East can be a great opportunity for many soft drinks manufacturers, however, the economic instability posses a major economic risk.

It is also imperative for a firm to consider the political forces within any economy are very importance. The firm, needs to invest in economies that have a history of political stability. The legal and regulatory forces posses a major threat to the soft drinks industry. With many lobby groups calling for controlling the availability of fast foods to the citizens, first, it will be hard to explain the difference of Balanced Forever and other fast food products. The fast foods have been associated with increased rate of obesity and overweight which has further catalysed many diseases.

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