Porters five forces model on fmcg

Post on 16-Apr-2017

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Transcript of Porters five forces model on fmcg

Bijoy Singha

Bikram Singha Roy

Rajib Chowdhury Rameez Ahmed

Biswarup Mondal

PresentedBy

High volume business - Sold in large quantities

Sold at relatively low cost

Fast Moving Consumers Goods also known as Consumer Packaged Goods

(CPG)

Extensive

distribution

networks

Less Shelf Life- Sold quickly

FMCG Industry

Personal Care

Food & Beverag

es

Fabric Wash & Household

Cleaner

Oral Care, Hair Care, Skin Care, Cosmetics etc.

Health Beverages, Staples, Bakery, Tea, Coffee, Soft

Drinks etc.

Major Segments In FMCG Sector

Buyers

Suppliers

Potential Entrants

Substitutes

Porter's Five

Forces Model

Rivalry Among Existing Players

Rivalry Among Existing Players

Rivalry among players are very high in FMCGPrice competitionAdvertisement & Promotional StuffDistributionNew productStorageExit Barriers are lowWarranty & Guarantee

Potential Entrants

POTENTIAL ENTRANTS

POTENTIAL ENTRANTS

Barriers Government Rules & Regulations

Government Service And Tax

Food Security Bill

FDI

Licensing Rules

Strong Distribution Network RequiredHigh Capital RequirementAlready Existing Strong Brand Names

Raw Material AvailabilityLow Labor Cost

Buyers

Buyers

Bargaining power is low

Concentration

Suppliers

SUPPLIERS

Bargaining power is low

Switching cost

Relative supply

Importance of input

Substitutes

substitutes

substitutes

Substitutes Utility Switching Cost

Utility

Threat-More

Switching Cost

Threat-Less

Conclusion