What is competition like in the alternative beverage industry? Which of the five competitive forces is strongest? Which is weakest? What competitive forces seem to have the greatest effect on industry attractiveness and the potential profitability of new entrants?
Since the recession in 2008 in the U.S., the alternative beverage industry has been negatively influenced. Consumers then realized the high price of soft drinks, which made the sales dropped every year. Sociologically, consumers are concerned about health problems that they can get from soft drinks. In particular, energy drinks with mixed alcohol effects became physician's warnings and caused consumers to raise awareness and demand innovation. In addition, companies have to improve their technological advances in order to promote their brands. Many companies became more innovative and competitive by producing products with advanced chemicals to lower calories and health issues. To become the leading sellers in the alternative beverage industry, companies have to advance their competitive prestige.Substitutes are a strong competitive force. If buyer's bargaining power gets stronger, substitutes will be introduced. Substitutes can attract buyers with competitive price, They also join the market after so companies can adapt positive feedback from consumers to advance substitutes.Supplier bargaining power is the weakest. Unique improved supplements can only be found from a few sources. There are plenty of packaging suppliers. Most alternative drink brands contracted bottles to specifications. Competitive forces that can greatly affect industry attractiveness and potential profitability of new entrants are buyers. Buyer's bargaining power is strong. They try the products and decide which is good to keep purchasing. They can be price sensitive and willing to switch to other products or even other segments. They