The Tea Industry is characterized by oversupply, with a surplus of about 80,000 tonnes a year. Tea estates swallow capital, and the return is not as attractive as in industries such as technology or services. There are also a number of substitutes including coffee. Tea is auctioned in London and prices are the same in absolute terms as they were 15 years ago. Tea is produced in Africa and India, Sri Lanka and China. Because of the huge capital investment involved, the most recent investments have been quasi-governmental, such as those by the Commonwealth Development Corporation in ailing estates in East Africa. There is no simple demarcation between buyers and sellers. Tea bag manufacturers own their own estates, as well as buying in tea from outside sources. In 1997 tea prices were described in India at least as being 'exceptionally firm. The shortage and inspite of the recent rise in prices, demand from Russia, Poland, Iran and Iraq are expected to rise.'

QUESTION

(a) Carry out a five forces analysis on the above case.