Food industry - Five Forces Analysis

Food industry - Five Forces Analysis

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Intensity of Existing Rivalry

Government limits competition (Food industry) Government policies and regulations can dictate the level of competition within the industry. When...
Large industry size (Food industry) Large industries allow multiple firms and produces to prosper without having to steal market share...
Fast industry growth rate (Food industry) When industries are growing revenue quickly, they are less likely to compete, because the total...

Bargaining Power of Suppliers

Low concentration of suppliers (Food industry) A low concentration of suppliers means there are many suppliers with limited bargaining power. Low...
High competition among suppliers (Food industry) High levels of competition among suppliers acts to reduce prices to producers. This is a positive...

Threat of Substitutes

Substantial product differentiation (Food industry) When products and services are very different, customers are less likely to find comparable product...
High cost of switching to substitutes (Food industry) Limited number of substitutes means that customers cannot easily switch to other products or...
Limited number of substitutes (Food industry) A limited number of substitutes mean that customers cannot easily find other products or services...

Bargaining Power of Customers

Low buyer price sensitivity (Food industry) When buyers are less sensitive to prices, prices can increase and buyers will still buy the product....
Product is important to customer (Food industry) When customers cherish particular products they end up paying more for that one product. This...
Large number of customers (Food industry) When there are large numbers of customers, no one customer tends to have bargaining leverage....

Threat of New Competitors

Strong distribution network required (Food industry) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
High capital requirements (Food industry) High capital requirements mean a company must spend a lot of money in order to compete in the...
Strong brand names are important (Food industry) If strong brands are critical to compete, then new competitors will have to improve their brand...
Advanced technologies are required (Food industry) Advanced technologies make it difficult for new competitors to enter the market because they have to...
Patents limit new competition (Food industry) Patents that cover vital technologies make it difficult for new competitors, because the best...
High switching costs for customers (Food industry) High switching costs make it difficult for customers to change which products they normally...
High learning curve (Food industry) When the learning curve is high, new competitors must spend time and money studying the market...
Entry barriers are high (Food industry) When barriers are high, it is more difficult for new competitors to enter the market. High entry...

What is Porter's Five Forces Analysis?

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