Saturday, February 23, 2019

A Water Concessioners Porters 5 Forces Analysis Essay

1. Rivalry among existing competitors- Low to Non-Existent. Since it is under concession agreement, thither is no other peeing utility comp both that can engage any business similar to A irrigate armed service program concessioner, unless granted by the brass under special agreement and with full knowledge and encomium of A Water avail concessioner.2. Threat of unexampled entrants- Low to Non-Existent. Companies that may want to apply for the concession must first comply with government requirements and excessively must have a substantial amount of hood investment (around 6 Billion Dollars starting capital), not to mention the technological expertise to run and maintain a water utility company.3. negotiate Power of Supplier- Medium. Although the primary knifelike material of A Water advantage concessioner is water which is basically free, the materials used for distribution line aliment and expansion are quite few. Though this is the case, A Water advantage concessio ner still has a slight control on the set of these materials unless the raw materials for these items like resin, steel, alum coagulating chemical used in treating raw water), etc. increases.4. Bargaining Power of Customer- Medium. This is due to the regulated tariff by the government under the MWSS Regulatory office which deals directly with A Water value concessioner.5. Threat of Substitute- Low. The small water refilling stations also get their water from A Water Utility concessioner. With regards to larger water bottling companies, this is just a small portion of the pie which A Water Utility concessioner can manage to absorb. Other than water for drinking purposes, there is no substitute for A Water Utility concessioners service.In summary, the water service providing business of A Water Utility concessioner is very viable with very little or non-existing threats of new entrants and rivals, with a very manageable bargaining power for both suppliers and customers and intimate ly no substitute. As a business strategy, A Water Utility concessioners main goal is to provide outstanding service to its customers for both water and waste water services and become a world class water utility company.

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