PORTER’S FIVE FORCE MODEL

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Transcript of PORTER’S FIVE FORCE MODEL

PORTER’S FIVE FORCE MODELPORTER’S FIVE FORCE MODEL

About Parle About Parle • India's largest manufacturer of biscuits and confectioneryIndia's largest manufacturer of biscuits and confectionery

• Established in 1929 Established in 1929

• 35% share of the total biscuit market35% share of the total biscuit market

• Good And Reliable QualityGood And Reliable Quality

• Cater to all tastes from kids to senior citizensCater to all tastes from kids to senior citizens

• Products to the mass with the affordable rangeProducts to the mass with the affordable range

BISCUIT INDUSTRY BISCUIT INDUSTRY PROFILEPROFILE

Two Sectors of Biscuit Industry

Organised Sector60%

Un Organised Sector40%

Organised : Unorganised :: 40 : 60

BISCUIT INDUSTRY BISCUIT INDUSTRY MAJOR PLAYERSMAJOR PLAYERS

Major Mkt Share ( Organised Sector)

Parle G35%

Britania31%

Sunfeast9%

Priyagold15%

Others10%

RIVALRY AMONG

COMPETING FIRMS IN

INDUSTRY

COMPETITORSCOMPETITORS

• BRITANNIA AND ITC MAJOR BRITANNIA AND ITC MAJOR COMPETITORS.COMPETITORS.

• SIMILAR PRICINGSIMILAR PRICING

• SIMILAR PRODUCTSSIMILAR PRODUCTS

• DISTRIBUTION NETWORKDISTRIBUTION NETWORK

THREAT OF NEW

ENTRANT

THREAT OF NEW THREAT OF NEW ENTRANTENTRANT

• BARRIERS TO NEW ENTRANT BARRIERS TO NEW ENTRANT

• FINANCIAL STRENGTH FINANCIAL STRENGTH

• DISTRIBUTION NETWORKDISTRIBUTION NETWORK

• SWITCHING COST OF CUSTOMERSSWITCHING COST OF CUSTOMERS

THREAT OF SUBSTITUTES

SUBSTITUTESSUBSTITUTES• Size of the SNACKS INDUSTRY Size of the SNACKS INDUSTRY

• Changing needs of the consumerChanging needs of the consumer

• Switching cost of consumers is highSwitching cost of consumers is high

• Other substitutes like home made snacks, Other substitutes like home made snacks, chips, packed foods etc. chips, packed foods etc.

BARGAINING POWER OF

BUYERS

Bargaining Power Of Bargaining Power Of BuyerBuyer

• Large number of buyers for biscuitsLarge number of buyers for biscuits

• Most of the Parle biscuits are undifferentiated and can be Most of the Parle biscuits are undifferentiated and can be replaced by substitutes.replaced by substitutes.

• Customers liking of bakery products like pudding, toast, Customers liking of bakery products like pudding, toast, butter etc. butter etc.

• Customer can switch to other products easily.Customer can switch to other products easily.

BARGAINING POWER OF SUPPLIERS

Bargaining Power Of Bargaining Power Of SuppliersSuppliers

• EASY AVAILABILTY OF RAW EASY AVAILABILTY OF RAW MATERIALS.MATERIALS.

• INCREASING PRICE.INCREASING PRICE.

RIVALRY AMONG

COMPETING FIRMS IN

INDUSTRY

Threat of new

entrant

Threat of substitutes

Bargaining power of buyers

BARGAINING POWER OF SUPPLIERS

ROLL NO. NAME

71 NIRAJ HARKHANI

86 ABHISHEK PAI

94 YASHICA SALIAN

102 SUSHANT SHETTY

115 BHAVNA AILSINGHANI

SUBMITTED BYSUBMITTED BY