If there is one merchandise made in Lebanon that is indisputably of international criterion. it’s vino. At a clip of recession. when many industries in Lebanon are fighting. the vino concern is in good wellness and in procedure of increasing end product. Wine is one of the few merchandises. which Lebanon exports in greater measures than it imports. I-A brief history about the industry: In Bekaa Valley. on a high tableland. stands the Roman God of vino where the ruins of the temple of Bacchus prevarication.

In 1857. Gallic Jesuit missionaries built a convent. and the production of vino started on a graduated table that satisfies their ain demands every bit good as gross revenues. They ran the vinery until 1973 when it was bought as a large investing that bing $ 5million including equipment and general outfit. Forty per centum of the entire production was exported. harmonizing to Mr. Zafer Chaoui. one of the proprietors who became president of what is now Chateau Ksara. At that point in clip. they used to aim Lebanese consumers populating abroad. Recently. they integrated non-traditional vino markets.

In Ksara & A ; s caves. more than 2 million bottles are maturating together with some that day of the month back to the Ottoman epoch. The first International vino carnival in Bristol. Britain introduced Lebanese vino abroad. it was in 1979. In the South of Bekaa. lies Chateau Kefraya that was established in the 1950s by Michel de Bustros. He imported assortments of grapes and planted them along 300 hectares. This harvest was sold and another wine maker was built in 1978. In 1996. a successful merchandise. “Comte de M” . was released and won awards from wine critics. Other Kefraya vinos won monetary values at different international vino exhibitions.

In 1988. three shareholding spouses joined. Kefraya and Ksara became the top vino manufacturers in Lebanon. II- Overview of the macro environment: A- General Economic Conditionss: The recent outlooks about the Lebanese economic system are going clearer. harmonizing to the Business Monitor International. The GDP growing is expected to alter from 3. 5 % to 3 % . the Central Bank head Mr. Riad Salameh projected that the GDP growing is 2 % . but recent indexs have shown some developments in the economic system which made increase our outlooks to 3 % .

The outlooks for 2006 & A ; 2007 are expected to go on at 2. 5 % GDP growing. The touristry sector which is considered really sensitive to perceptual experiences of hazard is the most affected by the recent political state of affairs in the state. Harmonizing to the curate of touristry MR. Sarkis Said the touristry degree has decreased by 20 % from 2004. The Lebanese debt has come to about $ 35. 6 billion which is equal to 180 % of the GDP. Although the economic state of affairs in Lebanon has been hazardous recently. the outlooks for an improved economic system still exist.

The vino industry was affected by the recent economic conditions. but because a large part of the industry production is exported the industry was non truly affected. In add-on due to the recent publicities that most of the companies have conducted led to better the state of affairs. B- Population Demographics: The industry is truly affected by the country’s demographics. particularly by the distribution of the faiths in the state from Christians. to Muslims. Most of the company’s gross revenues are sold in the eastern Beirut. matin. Kisrwan. and the least in south Lebanon and Bekaa. while west Beirut and north semen in the center.

C- Societal Values and Lifestyles: The industry is affected by the Lebanese values in footings of faith. such as the Christianity and one that forbids it like the Islamic faith. The new approaching life manners move towards cheese and wine assemblages. the fact that helped out developing and spread outing the market. III- Economic characteristics of the industry: Identifying the economic characteristics of an industry sets up a program of analysis and provides us with an apprehension of the strategic moves that different participants will utilize. Many characteristics should be analyzed as follows:

? Market size and growing rate Lebanese vino industry market size varies. since most of the company’s sell a major portion of their production sometimes making 50 % in foreign markets. At the same clip the Lebanese market is really old and good established where the consumers are good cognizant of the different merchandises and qualities. The market contains a large figure of consumers known for their high gustatory sensation. The Lebanese has been witnessing changeless growing in the past few old ages in the exclusion of 2005 due to the recent political activities ; ne’er the less the companies have been able to about make 2004 gross revenues volumes through the intensive promotional and advertisement runs.

The local market is expected to confront changeless growing in the hereafter although the grade of growing will change from one company to another. The 2nd market is the foreign markets. the Lebanese manufacturers has been witnessing a really large addition in their gross revenues abroad particularly in France. because of the high Lebanese wine high repute. The export gross revenues are expected to increase on a higher rate in the hereafter after the remotion of duties between Lebanon and the European Union. ?

Number of purchasers: Buyers in this industry are classified into two major classs: the single purchasers. and the distributers or jobbers. Some companies have a major distributer who is the lone purchaser and histories for the major fraction of their gross revenues in Lebanon as Chateau Kefraya and its distributer Fattal. This company’s besides depend on distributers in the foreign markets. Others like Ksara. distributes themselves to jobbers. retail merchants and persons. Such company’s have a really large figure of clients where no one purchaser will represent a large part of the gross revenues.

? Buyer needs and demands: Buyer demands do non alter significantly in wine demand. because it is a merchandise known for its particular gustatory sensation and age. Wine is wine. Of class purchaser demands change from a season to another due to the alteration in clime: demand for ruddy vino additions in winter. whereas demand for rose and white vino additions in summer. Overall there has been a tendency by consumers towards better and higher quality wine through? Number of challengers and range of their fight: Market is dominated by two major vino manufacturers Ksara & A ; Kefraya.

Other Lebanese manufacturers account for merely 24 % of the market gross revenues and the remainder of the market portion is dominated by the foreign vino. This means that fight is important merely between the chief leaders ; others compete every bit good between themselves. but within anther range. They all compete in the same national and regional country and besides have common international markets. The industry have non late witnessed any consolidation between providers. this is largely due to the fact that most of the companies are household 1s. and it is from the family’s traditions to salvage the company and spread out it.

The company has been witnessing changeless growing late but due to the high barriers to entry the figure of challengers is non increasing really much. the lone new entrant is by Chateau Khoury. ? Degree of merchandise distinction: Merchandises are extremely differentiated when we move from a trade name to the other. Some houses like Kefraya. pass more money on their packaging and labelling in order to pull new clients. And most of all on distinguishing their merchandises in footings of quality and gustatory sensation others like Chateau Ksara distinguish some of their merchandises in footings of quality others in footings of monetary value. the remainder in footings of targeted clients.

Most of the merchandises in the industry are differentiated in gustatory sensations. vino ages and production is strong between different wine makers. each one seeking a certain quality degree. There are no similar or “look-alike” merchandises. chiefly because of the large spread between the monetary value to choice ratios among the different challengers. ? Product invention The industry is non characterized by rapid merchandise invention and short life rhythm. On the contrary. companies are known for their long periods in research in all facets of the merchandises. such as the Consumers demand. vines used. the Outer bundle. the Brand image. and the selling methods used.

All of this makes new merchandise debut to the market a really long procedure. This industry is know for intensive research and development specially in the field of production in order to happen the best vines that deliver the requested gustatory sensation and suites the clime. land. and Natural resources. The industry is characterized by long life rhythm of merchandises. Normally companies introduce their merchandises and spend old ages in bettering its quality. trade name image. and production technique. Wine is a merchandise that will populate for long old ages.

Rivals opportunity of catching cardinal rivals by invariably presenting new merchandises is low. since vino entreaties to users in footings of quality and trade name image and non of continues new good looking merchandises. ? Production capacity: Most of the companies in the industry have excess capacity some making about 50 % as Chateau Kefraya. But such high category companies are non seeking to maximise their production and taking it to the bounds. On the contrary they are traveling after better quality and image. which they will endanger merely to bring forth at lower cost and hike gross revenues.

Recently the major providers went after increasing their production capacities because of their long tally schemes to fulfill the local growing and be able to take advantage of spread outing into the foreign market chances. ? Vertical integrating: The figure one participant in the market. chateau ksara. is the manufacturer and distributer of its merchandises it has integrated in backward to have its ain agribusiness land and forward to have its distribution system which ksara thinks gives it a competitory advantage because it enables it to cognize its clients and at the same clip increasing its net incomes by deriving from both distributer and manufacturer borders.

On the other manus most of the other manufacturers have integrated to have their ain agribusiness land but they have chosen to outsource distribution to a specializer. for illustration. Kefraya has outsourced to FATTAL. Harmonizing to these companies the advantage of outsourcing is by doing they focus on production. Vertical integrating involves both advantages and disadvantages. Vertical integrating in other stuffs such as the packaging is non possible since the industries as production of bottles requires high capital and economic systems of graduated table.

? Economies of scale Economies of graduated table do non play a major function in the industry. Most of the companies including the market leaders have large per centum of extra capacity and they are non willing to increase production for the interest of maintaining the quality high. Wine industry companies don’t vie on the base of monetary values where cost and economic systems of graduated table are of import. but they compete on the base of quality and image. ? Learning-and-experience-curve effects:

The acquisition and experience curve is really of import in the vino industry. since the quality and gustatory sensation is non perfect from the first clip. it depends in long old ages of experience to cognize the exact ingredients and their degrees. in add-on the long experience is needed to make the same gustatory sensation every clip. Such experience can non be copied from other rivals or from any topographic point. because every manufacturer will hold to cognize how to bring forth his merchandise harmonizing to his land. clime. and vines.

IV- Nature and strength of porters’ competitory forces: A- Rivalry among Sellerss Two major participants dominate the vino industry: Chateau Kefraya and Chateau Ksara. organizing 66 % of the entire market portion. Ksara is the figure one participant in footings of value and volume. Other local manufacturers that we will speak about have really little market portions comparatively 24 % . The remainder of the market ( 10 % ) is controlled by the imported trade names particularly from France. This is doing the major competition to be concentrated between chateau Kefraya and chateau ksara.

As ksara and Kefraya are going more and more equal in size and capabilities the competition is increasing between them but non on the degree of monetary value competition or publicities. the competition between them is traveling after quality and trade name image. Chateau Kefraya follows a alone scheme to invariably better its quality on all degrees of the value concatenation. Where on the other manus Chateau Ksara is utilizing a scheme to diversify its merchandise line and aim a broad assortment of clients. Other challengers are traveling after lower cost but normally these challengers don’t own a large market portion and miss the needful capital or resources to better their place.

The competition is expected to increase in the hereafter when the Lebanese market becomes unfastened to the European vino. This is why most of the industry leaders are utilizing schemes to increase trade name trueness and better quality in order to vie with the coming companies with elephantine resources. at the same clip the Lebanese manufacturers are working to increase their capacities and bettering quality to derive a better place in these state. The Lebanese companies are wagering on the Lebanese people loyalty to their place state trade names and on the Lebanese vino first-class repute to prolong and even better their place against future competition.

The alone features of this industry where each company has a different scheme is forcing competition but non escalating it. Rivals are invariably seeking to increase their market portion through advertisement and seasonal publicities particularly in November and December when the companies sell about 50 % of their production. but these activities by one challenger does non force other manufacturers to immediately answer at this offer because every company has its ain alone degree of clients which is aiming. so non straight impacting the others.

But the addition in the market portion of one company will be on the disbursal of the others normally the market leaders. ( Chateau Kefraya & A ; Chateau ksara ) which requires revenge but non needfully immediately and in the same manner or at the same degree of clients.

The industry members has good outlooks about future growing in their gross revenues which is turning invariably in local market and turning on a faster gait in the international markets where the Lebanese manufacturers are come ining new geographic parts. but the addition of distinction of company’s merchandises through image. gustatory sensation. and quality are doing the competition to free portion of its border.

Some of the little challengers go after monetary value cuts in order to increase their market portion. but this viing tool is non widely used by the large rivals although they have extra production capacity. but since these companies schemes depend chiefly quality they are non willing to endanger their high quality trade names merely to increase the volume of their gross revenues. At the same clip some taking companies such as ksara is seeking to present some low priced merchandises to pull the immature people.

Overall the rival competition is considered to be moderate between the challengers. with outlooks for addition in the coming hereafter between Ksara and Kefraya. the two market leaders and between the current industry members and the coming 1s due to the gap of the Lebanese markets for the European manufacturers. The cardinal rivals in the market and their information are as follows: Wardy It is one of the newest Lebanese wine makers. It was launched in 1999 by Salim Wardy. the General Director of “Solifed” company. known as an Arak manufacturer.

He imported the vines from France and planted it in the vale 11 old ages ago along 50 hectars. All the vines planted by Wardy are imported and they use 8 sorts of grapes. Wardy produces 5 merchandises between rose. ruddy and white. What differentiates Wardy from other Lebanese vinos is the manner of the bottles. called “Bourguignon Elegance” and the wax cap over the cork. This manner reflects a seal of high quality and breaks the common visual aspect of other wine bottles and besides satisfies international criterions.

Its programs for the hereafter are to maintain the production of Arak. to increase the production of vino. and to export to Europe and USA. Massaya de Tanail Massaya entered the spirits’ market in 1995 by bring forthing its Arak in elegant bluish glass bottles. Two old ages subsequently. the first Massaya vino was on the shelves. The company was established by the two brothers. Sami and Ramzi Ghosn as advised by the Gallic vino specializer. Dominique Hebrard. who happened to see Lebanon so. seeing the possible success that they would meet.

They started the production with minor measures. Just like many of their rivals. they produce wine and Arak every bit good. Management is carried out by the two proprietors. Sami and Ramzi Ghosn. who have even to the full immersed themselves in their wine making. They are ever supported by the thoughts of Gallic spouses. However. the fermentologists are responsible for the engineering and agitation. As for the distribution. it is handled by G. Vincenti and Sons. that has made a great impact with liquors such William Lawson’s Whisky and Bacardi Rum.

In the international market. Massaya has entree to the responsibility free stores at the Charles du Gaulle Airport in Paris. every bit good as. the world’s good known vino basements. such as Fauchon. Massaya holds a competitory advantage in being present in universe celebrated markets as mentioned above. and the great feeling it leaves behind by leting all sorts of visits to its wine maker. Massaya’s scheme is to keep a high criterion. first category quality. every bit good as good conceived image It plans in the hereafter to increase its production of vino. yet Arak will stay to be at a high profile.

Chateau Musar Musar was founded by the Gallic Serge Hochar. an fermentologist trained in Bordeaux and an adept active in viniculture since 1959. Although Musar is non the lone representative of Lebanon found in celebrated vino lists worldwide any longer. for old ages. it has been the keeper of the tradition. Although Musar has a certain regard for its aging procedure. that the vino is released from the basements merely after a lower limit of seven old ages. it has reached a point where it needs to sell younger vino to younger drinkers. As a consequence. the Musar Jeune was introduced in to the market.

What differentiates Musar is that it has proved itself by its more than one edition making the stock list lists of the universe celebrated vino bargainers and auction houses. In add-on. nine of its editions are listed in Wiggles deserving Winelist. right following to Mouton Rothschild and Chateau d’Yquem. Ksara Ksara is by far Lebanon’s largest manufacturer of vino and is the oldest name among Lebanon’s largest present wine makers. and heritage from Jesuit male parents who started to work in the Bekaa in the last century. Ksara is the lone wine maker that produces and distributes itself without intervention of any distributer.

Its scheme is to ever make added value with the consumers. please them with the betterments made with each edition and create religion in Ksara’s merchandise compared to other best vinos in the universe. Its freshly implemented scheme is to bring forth premium quality vino by keeping the same monetary value. What give Ksara’s a competitory advantage: The legion awards won by their vino and being Lebanon’s domestic market leader? Adopting direct selling scheme histories for their success since they know the market from its smallest eating house to its largest supermarket. Kefraya.

Kefraya is the 2nd largest manufacturer of vino in Lebanon after Ksara as we already mentioned. The good thing about this company is that its merely 25 old ages old and it acquired a high market portion to vie with the figure one vino manufacturer that age 150 old ages old. It produces vino and distributes it through Fattal. Harmonizing to Kefraya. holding a separate distributer is an advantage because their chief focal point is on production. Red vino constitutes 80 per centum of the entire production. Exports and imports are about equal this twelvemonth as opposed to last old ages where exports were 40 per centum.

This twelvemonth. Kefraya exported 150. 000 bottles of vino. i. e. 13. 000 instances to France. doing it the figure one exporter of wine comparative to its production agenda. It exports to forty states around the universe. France being the primary market. so US. Sweden. England. Belgium. Syria and so forth. They import around 20 sorts of grapes from France and are differentiated due to these assortments. and they have 10 sorts of vino. Their chief scheme is to “SEEK FOR QUALITY” as quoted from Mr. Emil Majdalani. gross revenues director.

They merely look for the better in footings of quality. while others look for higher gross revenues volume. Nakad The concern started in 1923 in Jdita. The infinite bounds due to the propinquity of lodging make it impossible to spread out the industrial activity further. The vinery at Jdita has fallen down the rankings since the pre-war when it was the adult male challenger to Ksara. But gross revenues and production started to pick up in the ninetiess. Nakad counts more on its exports to France where this trade name is rather popular. The direction is held by the four boies of Joseph Nakad. distribution is handled by Geadah Brothers.

Heritage Heritage has been steadily constructing its vino capacity. and is another company from its established turnover of its Touma Arak. Heritage has introduced the Chateau 1992 bottle. one of the best Lebanese vinos. Its hereafter programs are to import and cultivate new assortments of grapes in order to make higher criterions of wine production. B- The Potential Entry of New Rivals: The addition or lessening of possible new entrants depends on the expected growing. sum of net incomes. and the chief barriers to entry.

The Lebanese vino industry has been witnessing continues changeless local market growing and an addition credence abroad for the Lebanese vino. therefore increasing the exportation and bettering most of companies net incomes. These high growing outlooks and market growing are pulling members from outside the industry to come in it for illustration chateau Khoury late and some major international companies are seeking to come in the market and increase their market portion. On the other manus these possible entrants face some high barriers to entry: 1-Cost and Resource disadvantages: most of these costs are related to larning curve.

Producing vino is a procedure that takes old ages of experience and experiments in order to take the best vines that suit the land and produces the right gustatory sensation for the merchandise image. Besides experience is needed to bring forth the best agitation procedure and the exact clip needed for the merchandises to derive their gustatory sensations. 2-Brand Preferences and client trueness: the most of import barrier to come in the Lebanese market is Lebanese people penchants for their place state made merchandises and their trade name penchants.

The new entrants will hold to take the market portion of the biggest Lebanese manufacturers. These manufacturers such as ksara and Kefraya are utilizing schemes to increase their customer’s trueness and ever go after quality to better their places against any menace of possible new entrant. 3-Capital Requirements: Entering the vino industries requires heavy initial capital investings. The new entrant will hold to put in purchasing proper land with suited whether clime. The 2nd investing is in research to happen the best vines that suit the land and bring forth the requested gustatory sensation.

The 3rd investing is in marketing in order to present a new trade name name to vie with already established trade names universe broad. In add-on some capital investings are needed in selling and gross revenues services in some foreign markets because a company can non sell all of its production in the local markets. 4-Access to distribution channels: most of the Lebanese companies are concentrating their beginnings in the production procedure and outsourcing their distribution services to specializers. for illustration Chateau Kefraya has outsourced its gross revenues and distribution services to FATTAL.

This increases the barriers to entry because new possible entrants will hold to either construct their ain distribution system which will increase the needful capital investings. or outsource it to some distributer who will administer the new merchandise to retail merchants. In add-on the new entrant will hold to vie with distributers in foreign companies. 5-One of the chief barriers to entry in Lebanon is the scarceness of available lands in the Bekaa vale to bring forth high quality merchandises and compete with existing houses.

6-Tariffs and international trade ordinances: they used to be considered a barrier to entry into the Lebanese market. but late these duties have been diminishing and shortly will vanish to open the Lebanese market for full foreign competition. Although the company has good hereafter outlooks the above barriers to entry factors make it harder for new wine makers to come in the market particularly that this market is controlled by two major participants with whom competition is non an easy game. C- Competitive force per unit areas of replacement merchandises:

Substitutes have a important impact when clients are attracted to the merchandises of houses in other industries. In our deep survey of this industry. we found out that there is merely one direct replacement of vino which is Champaign. The alone character of vino makes it consumable merely in certain occasions and by certain type of people. which makes vino non replaceable by other by other alcoholic drinks such as whisky. Vodka or beer. or even by the non alcoholic drinks such as sodium carbonate. and juice. Wine is consumed during particular occasions like Christmas. New Year. and other jubilations.

Merely Champaign is consumed in such occasions and enjoys the high epicurean character. Although these alcoholic and non-alcoholic drinks are readily available in the market and at lower monetary values. they are non made of grapes and hence can non replace vino. Merely Arak is made up of grapes and is consumed in different occasions and aim another category of clients. It is the life style that affairs here. So the competitory force of replacement is really weak in the vino industry except for vino. But wine depends on the character of its consumers who are normally loyal to it. D- Suppliers dickering power:

For the vino industry. providers are chiefly supplying each wine maker with bottles. labels. caps. and carton. For the purpose of better quality and public presentation many of the industry rivals started importing these points from assorted European states where the providers enjoy better public presentation and higher criterions than the Lebanese providers. Others. that follow low cost scheme utilize local manufacturers. One of the chief providers in this industry is the glass bottle provider. These providers should hold good economic systems of graduated table and high criterions doing them few in the market but non monopolist.

The imported bottles should hold certain makings in footings of volume size. dimensions and weight. Most of the companies in the industry usage at least two bottle providers for their different merchandises each specialized in bring forthing bottles for specific merchandises. It is changeless instead easy and inexpensive for companies to alter providers. but they try to lodge with one provider to profit from better relationship. recognition benefits. and faster bringings taking to a lessening in providers power. The bottles supplied constitute a big portion of the cost of production therefore increasing the influence of its providers.

The manufacturers of vino constitute merely a little fraction of the bottle provider gross revenues. therefore increasing the suppliers’ power and the high fixed capital needed to get down a bottle mill and the high volume of production needed to run expeditiously makes it harder for the vino manufacturers to incorporate power. The 2nd major providers are the label providers. harmonizing to Kefraya and ksara most of the labels are printed and imported from Spain and Italy in order to see the high quality of their merchandises. Most of the industry manufacturers use the same method although some particular labels which need continues alterations are printed locally.

At him same clip some wine manufacturers who go after lower costs print their labels locally. It is considered really easy and inexpensive for the vino manufacturers to alter organize one publishing imperativeness to another. therefore diminishing the supplier’s power. The purchased merchandises from these providers although sometimes required certain inside informations are considered standard therefore diminishing the providers power. These labels constitute a moderate part of the cost therefore giving the providers moderate power. As in bottles the high fixed costs and the economic systems of graduated table needed to run expeditiously makes it difficult for providers to incorporate backward.

The 3rd portion of the packaging procedure is carton. normally fabricated locally in mills like UNIPAK S. A. L and GEMAYEL FRERES. These constitute the 3rd major beginning of costs giving the providers some power. The supplied outer bundles are considered really of import for the manufacturers because they constitute the first contact with the clients. Some other merchandises such as the vines are imported from Europe specially France. These vines are considered really of import for the production procedure. And they constitute a large part of the production costs giving its providers high bargaining power.

Most of the vino manufacturers are seeking to construct good relation ship with their providers through trueness to them and increasing the sum purchased from one provider to profit from the purchaser providers relation ship such as cut downing stock list and logistics costs through better coordination of cargos and heightening the quality of the parts and constituents. The overall bargaining power of providers is considered moderate to low since most of the providers could be replaced with low exchanging cost. E- Buyers dickering power:

There are two sorts of purchasers for most of the vino manufacturers. the first sort of manufacturers are the distributers who buy the production either locally or in international markets and so administer them. These sort of purchasers have first-class relationship with manufacturers in footings of coordination through continues communicating and meetings. to present the company’s merchandises and put to death the selling which the company and the distributer engage in. this sort of purchaser have some bounds that the purchaser have to stay to such as the minimal measure purchased and distributed.

But overall the purchasers and the manufacturers have first-class spouse relation ship. These sorts of purchasers have high power on the distributer. The 2nd type of purchasers is the retail merchants who either purchase from the distributers or straight from the company’s distribution system as in ksara’s vino instance. These retail merchants are considered to be little with jurisprudence bargaining power due to their low demanded measures. On the other manus these purchasers have really low exchanging cost to other viing trade names giving them higher power over wine manufacturers.

Besides the large figure of large retail clients is high diminishing the consequence of any of these clients Buyers’ power. The purchasers turning demand and low information they have about the production costs and their inability to incorporate backward makes are all assisting in diminishing the bargaining power. The over all power of these purchasers is considered high for the individual distributers. at the same clip this bargaining power is diminishing because of the first-class spouse relation ship between the distributers and the vino distributers.

On the other manus the retail purchasers have well low bargaining power. F-Collective Strength for the five competitory forces: The five forces each add certain sum of hazard to the industry. But the alone relationship between the challengers and the bettering relation ship with providers are presenting moderate degree of hazard. at the same clip the replacement merchandises are taking to a low degree of hazard due to the deficiency of direct replacement except for Champaign.

The purchasers hazard varies harmonizing to the distribution system used. if the company outsourced distribution system or the company straight distribute to retail merchants. in the ulterior one the hazard will diminish because of the less impact the purchasers will hold. on the other manus the first system of distribution adds more hazard but this hazard is decreased by the continues cooperation between the manufacturer and distributer.

The possible new entrants are attracted by the increasing and changeless growing in the market. but the considerable high barriers to entry diminish the hazard of new entrants. Overall the industries hazard varies around moderate hazard. V- Driving Forces: Industries c.