Cante Case Study

711 Words 3 Pages
Del Monte is part of the vegetable and fruit canning industry. There are multiple name brand companies as part of this industry such as; Libby’s and Green Giant. There are also many store brand companies that also produce canned fruits and vegetables. There are many ways consumers can attain fruits and vegetable such as growing them their selves, buying them fresh, buying the frozen, or buying them fresh. The great thing about buying fruits and vegetables from a canned is you do not need a freezer or fridge to keep them fresh and they have a very long shelf life. There is positive and negative factors that influence the competitive rivalry in the fruit and vegetable canning industry. Companies in this industry need a massive source to obtain the fruits and vegetables needed, a factory that processes the fruits and vegetables, and of course they need the machinery …show more content…
All companies in this industry use raw fruits and vegetables to create their products. These big canning companies have contracts with farmers to purchase the supplies needed for canning. If the companies want to change suppliers they will have to either not renew the contract with the farmers or break the contract. The companies can also build their own farms and grow the fruits and vegetables needed. The bargaining power of buyers in the canning industry is influenced by many factors. There are millions of buyers relative to the handful of firms in this industry. The buyers have no switching costs. The buyers only need to pick up a different brand. The buyers can also decide to grow their very own fruit and vegetables. The buyers can even can their own fruits and vegetables so they will be able to store them. A lot of buyers do not see any difference between the brands and usually choose the

Related Documents