BUSINESS AND
ACCOUNTING
STRATEGIC MARKETING
B7-SMK-13
END ASSESSMENT
MOGOMOTSI MOREMI
1924102
MR TAWANDA GOMBIRO
, SECTION A
Question
a. Five Porter’s Forces Analysis on Beef Industry in Botswana
Porter’s five forces model is an industry analysis which companies/firms use to analyze the
industry there are about to enter. This forces includes threat of substitutes, bargain power of
suppliers, threat of rivals, bargain power of buyers and threats of new entrants. This forces helps
the company to make a decision in terms of staying or joining the industry, or leaving or not
entering the industry.
Below are Porter’s five model analysis on the beef industry in Botswana;
i. Threats of substitutes products
Substitutes are defined as products or services that serve the same need or purpose to
the customer as another product or service offered in the market such as tea and
coffee.
In the beef industry, the substitutes for beef includes, chicken meat, pork, turkey in
Botswana. It is easy for consumers to get chicken meat compared to other substitutes
such as turkey and pork. It is not easy for customers to switch from beef to other
substitutes since most of them have a high price than beef. In terms of the availability
of the beef substitutes in Botswana is high but for the customers to switch the
probability is very low.
ii. Threats of new entrants
For every industry, there is possibility for new entrants. In the beef industry in
Botswana, the possibility to enter is very low because of the laws and the capital
needed to start. The requirements in the industry makes it difficult for new entrants to
enter. This is shown by the only meat processing firm in Botswana which is
Botswana Meat Commission, which is the only major beef processing firm available
while butcheries (process beef) covers the whole meat industry not only beef
industry. The start-up capital to enter the beef industry seem high thus resulting in
low possibility for new entrants.
ACCOUNTING
STRATEGIC MARKETING
B7-SMK-13
END ASSESSMENT
MOGOMOTSI MOREMI
1924102
MR TAWANDA GOMBIRO
, SECTION A
Question
a. Five Porter’s Forces Analysis on Beef Industry in Botswana
Porter’s five forces model is an industry analysis which companies/firms use to analyze the
industry there are about to enter. This forces includes threat of substitutes, bargain power of
suppliers, threat of rivals, bargain power of buyers and threats of new entrants. This forces helps
the company to make a decision in terms of staying or joining the industry, or leaving or not
entering the industry.
Below are Porter’s five model analysis on the beef industry in Botswana;
i. Threats of substitutes products
Substitutes are defined as products or services that serve the same need or purpose to
the customer as another product or service offered in the market such as tea and
coffee.
In the beef industry, the substitutes for beef includes, chicken meat, pork, turkey in
Botswana. It is easy for consumers to get chicken meat compared to other substitutes
such as turkey and pork. It is not easy for customers to switch from beef to other
substitutes since most of them have a high price than beef. In terms of the availability
of the beef substitutes in Botswana is high but for the customers to switch the
probability is very low.
ii. Threats of new entrants
For every industry, there is possibility for new entrants. In the beef industry in
Botswana, the possibility to enter is very low because of the laws and the capital
needed to start. The requirements in the industry makes it difficult for new entrants to
enter. This is shown by the only meat processing firm in Botswana which is
Botswana Meat Commission, which is the only major beef processing firm available
while butcheries (process beef) covers the whole meat industry not only beef
industry. The start-up capital to enter the beef industry seem high thus resulting in
low possibility for new entrants.
