Diageo Competitor Analyses

Micro Environment analyses

PORTER'S 5 FORCES

Analyzing micro environment and industry conditions of the business is curtail for determining firm's current position and foreseeing the potential opportunities that should be reaped and not passed by. For this purpose we turned to Porters 5 forces analyses according to which there are 5 major pressures a firm is facing during the business processes: Pressure from competitors/rival sellers, from suppliers, from buyers, from firms in other industry having substitute products and threats from potential new entrants. Hereafter we will discuss each of them sequentially.

Forces from Competitors/Rival Sellers

The strongest of the five competitive forces is nearly always the market maneuvering and jockeying for the buyer patronage that goes on among rival sellers of a product. Current position of Diageo in the competitive battlefield looks like the following:

In spirits, Diageo's (Johnnie Walker, Smirnoff, Baileys) major global competitors are Pernod Ricard (Chivas Regal, Absolut Vodka) Bacardi & Limited Company (Bacardi, Martini), Brown-Forman (Jack Denials, Finlandia), Beam Global Spirits & Wine (Jim Beam) each of which has several brands that compete directly with Diageo brands. In addition, Diageo faces competition from local and regional companies in the countries in which it operates.

In beer, the Guinness brand competes in the overall beer market with its key competitors varying by market. These include Heineken in Ireland and both Heineken and SABMiller (second large beer producer in volume) in several markets in Africa, Coors Brewing (Carling) in the United Kingdom and Carlsberg in Malaysia.

In wine, the biggest competitor in this sector is Constellation Brands which is having more than 52 wine brands in the