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Global Spirits Industry: Porter’s Five Forces Analysis

  • January 2014
  • 20 pages
  • Aruvian's R'search
Report ID: 1937937

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The global spirits industry can be defined as the market for liquors, specialty spirits, brandy, rum, vodka whisky, and others spirits such as gin, tequila, amongst others. Having posted moderate growth in the last couple of years, the global spirits industry came out of the recent financial recession with not much of an impact on the market’s performance and it is likely that the industry will continue to grow at a moderate pace in the next couple of years.

Aruvian Research analyzes the Global Spirits Industry in Michael Porter’s Five Forces Analysis. It uses concepts developed in Industrial Organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Porter referred to these forces as the microenvironment, to contrast it with the more general term macro-environment. They consist of those forces close to a company that affect its ability to serve its customers and make a profit. A change in any of the forces normally requires a company to re-assess the marketplace.

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