A Water Concessioners Porters 5 Forces Analysis Essay

1. Rivalry among existing competitors- small to Non-Existent. Since it is under(a) concession agreement, there is no other peeing utility comp any(prenominal) that can engage any business similar to A peeing utility-grade concessioner, unless granted by the government under finicky agreement and with full knowledge and approval of A peeing profit concessioner.2. scourge of new entrants- Low to Non-Existent. Companies that may want to apply for the concession essential first comply with government requirements and also must have a substantial amount of capital investment (around 6 Billion Dollars starting capital), not to mention the technical expertise to run and maintain a water utility company.3. Bargaining fountain of Supplier- Medium. Although the primary raw material of A Water good concessioner is water which is basically free, the materials utilize for distribution line maintenance and expansion are quite few. Though this is the case, A Water Utility concessioner still has a slight control on the pricing of these materials unless the raw materials for these items like resin, steel, grade coagulating chemical used in treating raw water), etc. increases.4. Bargaining Power of Customer- Medium. This is due to the regulated tax by the government under the MWSS Regulatory office which deals directly with A Water Utility 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 submissive bargaining power for both suppliers and customers and virtuall y 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.