Porters forces of competition:Supplier power:

i.
Nature has blessed Pakistan with an ideal climate fora wide range of delicious fruits.
So there will be nosuch thing as supplier monopoly, as we are notdealing with
something thats supplied by only acouple of people.ii.There might be some degree
of differentiation of theinputs as fruits from different territories have a bitdifferent
taste.
Buyer power:
i.
Buyer power in terms of volume buying is not high.But in terms of his or her
experience, because abuyer having a good or bad experience willimmediately share
it with others and may affectother buyers behavior.ii.The switching cost from one
product to another isalmost nonexistent which empowers the buyer.iii.The number
of substitutes is so much high that anymistake in distribution will make buyer to use
otherproduct to fulfill its need.iv.Buying behavior is inclined more towards
pricesensitivity rather than quality or brand loyalty.
Barriers to entry:
i.Luckily there are no barriers to enter the market onpart of the government.ii.The
industry is easy to enter as the technology is nota very complicated one and the
assets are not veryspecialized ones.
iii.
Considering that the behavior of general consumer isprice driven therefore it also
encourages others toenter the market.
Threat of substitutes:
i.A large number of substitutes are available inbeverage industry.ii.Because of
highly competitive industry there is noswitching cost of buyer from one product to
another.iii.The buying behavior of customers is more sort of price depended rather
than taste.
Degree of rivalry:
i.
Intensity of rivalry in beverage industry is very high.Big brands such as Coca-cola,
Pepsi, Nestle, Shezan,Country etc. are competing in this industry.ii.As the beverage
industry itself is very vast forinstance soft drinks, hot drinks, mineral water and

juices no of direct and indirect competitors is alsolarge.iii.Most of the brands in

competition are worldrecognized giants.
Opportunities
:
Product identification is the considerable factor affecting Gourmets competitive
position. Gourmets brand name is known well throughout Pakistan
today. The most important concern is that above the past few years has been to get
this name product to be even better standard. Packaging changes have also
affected determinant of productivity. The company can advertise and introduce its
outlets in other cities of Pakistan to gain more market share. As population of
Pakistan is increasing day by day, so there is great opportunity for gourmet to
attract new customers. Company may start entering rural areas also. The company
may also diversify its business in some other potential business. Increased interest
of people in musical groups, cultural shows and sports has provided an
opportunity for Gourmets to
increase its sales through them. Expanding the product/service lines by Gourmet
Baker Pakistan could help them raise sales and increase their product portfolio.
Gourmet Baker Pakistan has a number of highly skilled staff, which is an opportunity
for them to explore as expertise of their staff can help Gourmet Baker Pakistan to
bring the business forward.
`
Threats
:
One of the major threats that Gourmet Cola has to face is in the form of its two
competitors; Pepsi and Coca Cola. These two companies have a very strong hold in
the market and breaking their status is going to be very difficult by Gourmet Cola.
Gourmet needs to market their company in cities where they do not have outlets to
make consumers more aware about their product. Law and order situation of the
country. Oil pricing in the country. Political instability. Electricity shortage. Extra
competition and new competitors entering the market could unsteady Gourmet
Baker Pakistan and be a threat.