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Essay text:
CCU is leader in domestic as well as international markets with its several brands. Its stocks are traded on Chilean Stock Market. CCU is vying a potential opportunity to enter the Pisco Liquor (brandy like beverage distilled from muscatel grapes) market.
1. Apply the five forces model to CCU’s major industry.
Threat of Entry – Low
y Huge capital investment is required, but for big players comparable to CCU, it will not be a major issue.
y Distribution channels are vital for the industry and with CCU’s spread it wouldn’t be hard to find adequate strength of Distributors/Retailers.
y Though the product lines are monotonous and CCU exist in both Alcoholic & Non-alcoholic beverage market, but they all fall under the same broad category and it will be hard to differentiate between two same scale competitors...
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