The following research paper involves what our group has learned about the competition, profit, risk, and evolution of two companies. The companies we researched are Sysco and U.S Foods. Both companies are in the food industry and they are each other’s biggest competitors. We have worked over the past week to gather as much information as possible involving these two companies.
Competition
U.S Foods is a very similar business to Sysco, both being food distributors. U.S Foods is one of the nation's largest food distributor. Since U.S Foods is a similar business, it is considered to be a direct competition towards Sysco. U.S Foods comes in at the number two ranking with currently about half the sales …show more content…
Since both companies ship in large quantities, they don’t offer much off any BOGO type products. The way that each company competes at selling would make the two, U.S Foods and Sysco, non-price competitors. Instead of giving their customers big deals, they make sure their customers are getting the best quality food, great service, and always trying to be most convenient for their customers. So instead of always promising a great back-to-school deal, both companies will promise the best of the best for their customers.
Sysco wants to end the competition between U.S Foods and become one company, which is one way U.S Foods has an effect on Sysco. Sysco is currently looking at a $3.5 billion merger with U.S Foods. This will allow Sysco to have greater profit, along with the opportunities to spread and become larger, while getting rid of the biggest competitor. Since the two companies are so similar and they are almost always two of the nation's largest food distributor, Sysco thought it would be a good idea to try and become one. This would allow the companies to have greater opportunities being two companies in