ENBUS302 Study Guide - Quiz Guide: Convenience Store, Fixed Cost, Traditional Food
2 May 2016
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Evaluate the competitive threat in the industry and conclude on prospects for profitability within the industry (3 points). When phoenix first starts up with their ginger fizz, they are facing a rather saturated beverage industry that is dominated by two giants: coca-cola and frucor. As a new entrant, phoenix, to begin with, does not have competitive advantage when it comes to popularity and brand awareness among customers. They have to build up their brand"s culture, reputation and customer loyalty from the beginning while these two companies have already craved up the beverage industry in new zealand. That is, phoenix needs to win over its own customers from its competitors. In order to do so, large amount of money is required to be contributed to product promotion and marketing, which can be overwhelming for a start-up. As is mentioned above, coca-cola and frucor are phoenix"s main competitors. Compared to these two companies, phoenix"s products have a higher fixed cost.
