Porter’s Five Forces Model
For evaluating Porter’s Five Forces Model on Shan Food Industries, we will discuss about the following:
1. Bargaining power of Suppliers
2. Bargaining power of Customers
3. Threat of New Entrants
4. Threat of Substitute Product
5. Rivalry among existing Competitors
Bargaining power of Suppliers
Bargaining power of Suppliers within this industry is low, because there are so many suppliers who are providing food related products especially spices and ready to cook products within Pakistani market.
Bargaining power of Customers
Bargaining power of Customers within this is industry is high, because there so many option which are available for the customers in this market. In other words, there are huge numbers of suppliers in the same line of industry. Customers as they have high bargaining power they will easily switch over to another product if prices are increased.
Threat of New Entrants
For the spices industry in Pakistan, there are 2 types of competitors. Firstly, for the packaged spices it is very difficult to break the market of Shan Foods. New companies emerging in this …show more content…
In spice sector, as shown above, National Foods is leading the market, therefore currently falling in stars. Shan Foods is right on second number with market share of 0.85; also falling in Stars. Mehran Foods with a market share of 0.2 and other companies with a market share of 0.1; falling in question marks. Shan Foods, not being the market leader, will adopt the strategy of market penetration. Through adopting this strategy, Shan will penetrate more in the audience and capture the lost or untapped market. Reducing profits and working on more promotional activities will lead to entering more segments of the markets within less time. In return not only increasing the market share but also developing a sense of loyalty in the untapped
For evaluating Porter’s Five Forces Model on Shan Food Industries, we will discuss about the following:
1. Bargaining power of Suppliers
2. Bargaining power of Customers
3. Threat of New Entrants
4. Threat of Substitute Product
5. Rivalry among existing Competitors
Bargaining power of Suppliers
Bargaining power of Suppliers within this industry is low, because there are so many suppliers who are providing food related products especially spices and ready to cook products within Pakistani market.
Bargaining power of Customers
Bargaining power of Customers within this is industry is high, because there so many option which are available for the customers in this market. In other words, there are huge numbers of suppliers in the same line of industry. Customers as they have high bargaining power they will easily switch over to another product if prices are increased.
Threat of New Entrants
For the spices industry in Pakistan, there are 2 types of competitors. Firstly, for the packaged spices it is very difficult to break the market of Shan Foods. New companies emerging in this …show more content…
In spice sector, as shown above, National Foods is leading the market, therefore currently falling in stars. Shan Foods is right on second number with market share of 0.85; also falling in Stars. Mehran Foods with a market share of 0.2 and other companies with a market share of 0.1; falling in question marks. Shan Foods, not being the market leader, will adopt the strategy of market penetration. Through adopting this strategy, Shan will penetrate more in the audience and capture the lost or untapped market. Reducing profits and working on more promotional activities will lead to entering more segments of the markets within less time. In return not only increasing the market share but also developing a sense of loyalty in the untapped