Buy custom Ccu - The Pisco Opportunity
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| Topic: |
Business
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| Number of pages / Number of words: |
4 / 942 |
Essay's paper body
Apply the five forces model to the industry that CCU is considering entering.
Threat of Entry – Medium
y Huge capital investment is required, but for big players like CCU it is of no significance
y Distribution channels are vital for the industry but with CCU’s domestic & international network, the risk is low...
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Non-Alcoholic beverages like juice, aerated drinks, water etc. can also be considered as substitute.
y It is a price sensitive market. Hence, due to the new tax policies in place where the taxes on other alcoholic beverages will lower down to the level of Pisco, there are high chances of customers switching to substitutes...
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General points of the essay
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