[Abstract] According to Michael Porter's theory of enterprise competitive strategy, the competitive advantage of an enterprise is determined by the industrial structure, which is determined by five competitive forces in an industry (namely, the threat of entry, the threat of substitution, the bargaining power of buyers, the bargaining power of suppliers and the competition of existing competitors). In order to counter these competitive forces, enterprises should adopt corresponding development strategies and establish their own competitive advantages. This paper attempts to use Michael Porter's five competition models.

[Keywords:] Five-force model; Competitive situation; Development strategy; Fruit juice beverage enterprises

In 1980s, Michael E. Porter published Competitive Strategy (1980), Competitive Advantage (1985) and National Competitive Advantage (1990), which formed the famous "Porter Trilogy". Michael Porter's theory is based on the paradigm of "Structure-Behavior-Performance (SCP)" in industrial organization economics, and holds that the competitive advantage of an enterprise is determined by the industrial structure and five competitive forces in an industry, namely, the threat of entry, the threat of substitution, the bargaining power of buyers, the bargaining power of suppliers and the competition of existing competitors. The situation and comprehensive intensity of these five basic competitive forces determine the competitive intensity of the industry, thus determining the ultimate profit potential of the industry. In order to counter these competitive forces, enterprises must adopt corresponding development strategies and establish their own competitive advantages. This paper attempts to use Michael Porter's five competitive models to analyze the competitive situation of China's fruit juice and beverage industry, and in view of the current difficulties faced by fruit juice and beverage enterprises, puts forward their own views on how to grasp the competition and choose the correct development strategy.

First, the competitive situation of fruit juice and beverage industry

In recent years, fruit juice drinks have been gradually accepted and recognized by consumers with their characteristics of "green, nutritious, environmental protection and health", and the market has developed widely. The growing prosperity of the fruit juice market has brought about the differentiation of consumption patterns and methods, which are mainly manifested in the following characteristics: First, the fruit juice beverage consumption market is obviously younger. According to the survey results of the new generation of CMMS2000, the consumer groups of fruit juice drinks are younger. Consumers aged 20-40 account for 6 1.3% of the market share of fruit juice drinks. Second, the variety of fruit juice drinks is diversified. Enterprises have developed new fruit juice drinks according to consumers' consumption concept of pursuing health and nutrition, and gradually formed a pure fruit juice drink market, a low-concentration fruit juice drink market favored by young consumers, a children's fruit juice drink market and a compound fruit juice drink market. Third, the consumption brand characteristics of fruit juice drinks are obvious. Consumers pay attention to the basic elements such as product taste, price and brand awareness. Domestic fruit juice brands have moderate prices, good reputation and great brand advantages. Consumers are satisfied with most brands, but their brand loyalty is low.

In the 1980s, there were also fruit juice beverage brands in China, but due to the lack of market cultivation and self-management, they gradually withdrew from the market, or were confined to a certain regional market, and basically lacked the strength to launch a nationwide market offensive. It was not until 200 1 that the "fresh orange duo" of pet packaging was successfully launched, and domestic and foreign brands such as Coca-Cola, Master Kong and Yangshengtang followed suit, showing a competitive pattern in which many brands seized the fruit juice and beverage market.

1. The market structure of fruit juice drinks presents monopolistic competition. According to the statistical report of China Beverage Industry Association, by 2005, the market penetration rate of fruit juice beverage reached 36.5%, ranking fourth in the beverage industry. At the end of the same year, according to the sales statistics of juice drinks in key large-scale retail malls in China by the National Commercial Center, the top three were Uni-President, Huiyuan and Master Kong in turn, based on the comprehensive market share. According to the "Three-Four Laws" proposed by Boston Consulting Group, in a stable competitive market, there will never be more than three influential competitors, and the market share of the strongest competitor will not exceed four times that of the smallest competitor. It can be seen that the concentration trend of fruit juice beverage market is obviously rising, and the market structure of monopoly competition is present at present. The products of different enterprises in the market have strong substitutability, and the leading position in the industry is not high.

2. Every market segment is king. The competition in the fruit juice and beverage market is also reflected in different market segments. The first category is low-concentration juice drinks with a juice content of only 5- 10%. In this camp, Uni-President "Fresh Orange Duo" and Master Kong's "Fresh Daily C" are representatives, both of which occupy a high share in the market segment. The market segment of children's juice drinks is dominated by "Queer" of Coca-Cola Company. The other is the compound juice market with a very hot juice concentration of about 30% in recent years, mainly represented by "Mr. Juice" of Watsons and "Farmer Orchard" of Yangshengtang. These products are sought after by fashionable young people for their novel product characteristics. However, because the price of "Mr. Juice" is much higher than that of "Farmer Orchard", the sales volume of "Farmer Orchard" is better than that of "Mr. Juice" in consumption. In addition, as a leader in the pure juice market, Huiyuan's brand and reputation are deeply trusted by Chinese people. However, with the impact of international professional pure juice brands such as Connor, the competition in this market segment will be more intense in the future.

The competition is fierce, but there is great room and opportunity for development. There are many brands and varieties in the fruit juice beverage market, and the advertising of each brand is strong and the competition is fierce. However, from the perspective of product life cycle, the fruit juice beverage market is currently in the growth stage, and there is huge room for development. In terms of market share, no brand has an absolute advantage and become a leading brand.

Secondly, it analyzes Porter's five-force competition model in juice and beverage industry.

1. Competition among existing competitors. From the life cycle of the industry, with the improvement of people's living standards and consumption power, the fruit juice and beverage industry has entered a period of rapid development, and its products have been recognized by the public, and the market demand is great. At present, there are many powerful competitors in the fruit juice and beverage market, with diverse product categories and leaders in various market segments, but they lack strong brands. However, with its superb copying and imitation technology, it also has certain influence in market segments. These enterprises often compete with well-known brands for the market by price competition. Large enterprises are facing the dilemma of falling profits, and small and medium-sized enterprises are under great competitive pressure in terms of funds, channels and products. Coupled with the influence of price war, it can be predicted that the competition between existing competitors will continue to intensify for a long time to come.

2. The threat of new entrants. The threat of new entrants mainly depends on the barriers to entry and the counterattack of existing enterprises. In my opinion, the threat of new entrants in the juice and beverage industry is as follows:

First, economies of scale. Generally speaking, the barriers to entry formed by economies of scale are either large-scale production by new entrants who have braved the strong counterattack of existing enterprises, or small-scale entry by enduring the disadvantage of high product cost for a long time. Fruit juice and beverage enterprises belong to "equipment production" enterprises, with good equipment production line and excellent processing technology. This means higher production efficiency and lower production cost. According to the sales data of national key large-scale retail enterprises in 2005, Uni-President's comprehensive share in the fruit juice and beverage market is 20. 17%, which is in a leading position. One of the important reasons why Uni-President can gain such a high market share is its perfect production line.

Second, the counterattack of existing enterprises in the industry. The huge market development potential of fruit juice drinks attracts more and more new entrants. Market leaders use existing superior resources to fight back, such as controlling raw materials, increasing the cost of new entrants, controlling terminal sales, blocking competitors, and increasing the sales cost of competitors. , forming barriers to entry.

Third, the demand for funds. Entering the market requires a lot of investment, which constitutes an entry barrier. At present, the cooperation and alliance between Uni-President and Huiyuan in the fruit juice and beverage market, the joint efforts of Master Kong and Asahi of Japan, and the acquisition of international fruit juice brands by Liangle have brought great pressure to new entrants, making it difficult for new entrants to compete in capital operation.

3. The threat of substitutes. The substitutes of fruit juice beverage industry are not only other types of beverages, but also face the impact of other nine categories of beverages. If the price of substitutes is low, the upper price limit of juice drinks can only be at a low level, which limits the income of juice drinks. The more attractive and restrictive the price of substitutes is, the greater the pressure on the fruit juice beverage market. This will intensify industry competition. Enterprises must pay attention to the threat of substitutes. 4. The buyer's bargaining power. Generally speaking, buyers in the juice and beverage market have strong bargaining power. First of all, from the perspective of sales model, in first-tier cities, dealers have more information and less product differentiation, so their bargaining power is relatively large. In second-tier cities, enterprises mainly rely on dealers to gain market, but the profitability and enthusiasm of dealers are low. Secondly, from the retail terminal, for supermarkets such as Wal-Mart and Carrefour, the berth fee and entrance fee are very high, and the selection of PET bottles for juice drinks on the shelves is very strict. Most of them choose fruit juice drinks with considerable brand effect, and such supermarkets also participate in the formulation of retail prices of products according to their own interests. As for small and medium-sized shops, they are very sensitive to prices, with many substitutes and strong bargaining power.

5. The bargaining power of suppliers. The threat of suppliers is mainly to raise the supply price or reduce the quality of products and services provided. From the perspective of raw material supply, China is rich in fruit resources, and many fruit juice and beverage enterprises have their own production bases, so the bargaining power of suppliers is not strong. However, with the low-cost, high-quality and highly competitive juice entering the international market, the industry has attracted a lot of domestic and foreign funds. Over the years, a large amount of capital investment has made China's concentrated juice overcapacity, and the shortage of raw materials has led to an increase in the purchase price and the production cost of enterprises. On the other hand, the reduction of profits requires enterprises to reduce production costs, and the most effective way to reduce costs is to reduce the purchase price of raw materials. Reducing the purchase price will harm the interests of farmers, seriously damage the production factors of juice production enterprises, and lead to the gradual loss of competitive advantage in the industry. PET bottles used for packaging have the characteristics of small unit value, light weight, large volume and centralized use by manufacturers, which makes their transportation cost high and once led to strong bargaining power of PET suppliers. In this regard, many enterprises have adopted alternative methods such as PP bottles and aseptic cold filling to reduce packaging costs. The strict control of packaging cost by fruit juice and beverage enterprises has squeezed the profits of upstream industries (raw materials), competition in the same industry and downstream enterprises (customers).

Third, the development strategy of fruit juice and beverage enterprises

How to develop their own competitive advantages, fight against five kinds of competition, or influence the functions of five kinds of competition according to their own wishes is based on the formulation and implementation of enterprise development strategies. Generally speaking, a successful strategy needs a long-term, simple and consistent goal, closely combining with the surrounding environment, objectively evaluating resources and effectively combining resources to implement the strategy. Based on the above analysis, in view of the competitive situation of fruit juice and beverage industry, the following strategic suggestions for enterprise development are put forward.

1. Differentiation strategy. Differentiation strategy means that the products or services provided by enterprises have unique advantages in the same industry compared with other competitors, and for a long time, competitors can't or can't provide this advantage. For the market competition pattern of fruit juice and beverage industry, if enterprises can find a new entry point according to market demand and realize differentiation, their development will have a sustainable competitive advantage. Fruit juice enterprises can implement the differentiation strategy from the following aspects: First, grasp the market changes, adjust measures to local conditions, seize the opportunity, develop new beverages, rationally position and realize product category differentiation. Second, when implementing the product differentiation strategy, we should pay attention to the enterprise's own resource conditions. It is best to operate in a small market, realize regional differentiation first, and then enter the big market to achieve differentiation. When promoting a new product, in addition to keen market tentacles, flexible mind, effective differentiation means and strong brand concept, it is also necessary to establish a strict standard promotion department to implement effective marketing programs for sellers, merchants and consumers according to standards to maximize differentiation. Finally, enterprises realize that product differences are only temporary, and the key to maintain their own uniqueness and lasting competitiveness is brand culture construction. Products can be imitated, but brand differences and differences.

2. Low-cost competitive strategy. Low-cost competitive strategy refers to the strategy that enterprises can gain competitive advantage by reducing costs and having more profit space with competitors under the same circumstances. The price sensitivity of beverages is high, and the price is the main factor for consumers to decide to buy. The basis of realizing low price is low cost. Cost advantage can be achieved through lower raw material price, higher production efficiency, lower labor cost or distribution cost advantage in the region, etc. Fruit juice and beverage enterprises can achieve low-cost competitive advantage by integrating organizational resources and reducing activity costs in the value chain. By sharing resources with existing businesses, such as production equipment, distribution channels, convertible brands, etc. The cost will be greatly reduced. In addition, the cost advantage can also be obtained through OEM. On the one hand, enterprises can produce high-quality and high-quality products through professional OEMs. On the other hand, economies of scale can be formed in a short time. Huiyuan also chose to cooperate with multinational companies to produce and sell branded products when entering the international high-end market, which effectively supplemented its own brands.

3. Brand management strategy. Brand building is the key for fruit juice and beverage enterprises to achieve rapid development. Only based on the brand can consumers' cognition of products rise from perceptual to rational, from impulsive purchase to selective purchase, and form brand loyalty. Fruit juice and beverage enterprises can adopt the following brand management strategies:

(1) leads the brand development with accurate image positioning. Accurate image positioning is the basis of successful brand management. Consumers choose a brand precisely because its image positioning meets the psychological needs of consumers. Looking at the successful enterprises in the juice and beverage market, Huiyuan stands for 100% juice, Mr. juice stands for highly concentrated juice, and the farmer's orchard stands for mixed juice. These are the best proof of accurate image positioning. Inaccurate brand image positioning, including too many products, will inevitably lead to product image confusion. In addition, it will cover products with brand advantages. Therefore, accurate positioning is the basis of brand management.

(2) Franchising is an effective way to improve brand value. This is mainly for the international operation of fruit juice and beverage enterprises. Franchising plays a very important role in brand expansion. Through unified brand operation and management, all resources will be accumulated to meet the needs of consumers to the greatest extent. For example, Coca-Cola signs franchise contracts with local excellent beverage enterprises, and then sells products in specific fields. * * * Maintain product brand development. This strategy skillfully combines brand expansion with enterprise expansion, creating the brilliance of Coca-Cola and achieving great success in international operation. Fruit juice and beverage enterprises can learn from this practice, by cooperating with local excellent enterprises, signing local distributors, making use of existing brands, going deep into the local market, implementing brand expansion, extending brand value and exploring the international market.

(3) Internal brand spirit is the core of the brand. The real core of a brand lies in its inner brand spirit. When consumers buy brand products, they also buy trust in the enterprise. When a brand becomes the brand spirit of the target group, it reaches the highest level of the brand, which is the fulcrum to form high brand loyalty. At present, the biggest problem in brand building of fruit juice and beverage enterprises is that they are easily imitated or replaced by new products appearing in the market. In fact, in the early stage of development, enterprises should not launch different products in different market segments at the same time, which is not only costly, but also risky in market segments. Carefully managing a product, using it to build brand culture, conveying corporate philosophy, and then using the already stable product image and brand culture to open up new markets will get twice the result with half the effort.

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