Case Study On Industry Attractiveness

Decent Essays
Investigating into Industry Attractiveness for Unilever Food Solutions
As mentioned in the Strategic Scope, UFS mainly caters to the B2B or the industry segment. This section assesses the industry and the attractiveness in which UFS operates in. The main players and giants in the industry are namely, Edinborough, Nestle and UFS. Considering the product portfolio, Edinborough is the market leader which has a strong customer base. Nevertheless, UFS holds the fifth revenue generator in the market and the fourth based on the customer base.
Porter’s Five Forces
Porter’s five forces model is used to assess the Industry in which UFS operated in. With this analysis, overall attractiveness of the industry is addressed. To do so, Porter’s criteria of industry attractiveness should be assessed, namely, the threat of new entrants, threat of substitutes, bargaining power of buy and supplier and the competitive players. Based on these criteria, the attractiveness is mapped onto the radar chart. This way, a brief view of industry attractive can be surmised by a simple Likert scale.
Threat of New Entrants
Threat level: Low
• Since industry consists of substantial number of buyers in markets HoReCa, streets stalls, cafeterias, bars, hospitals, “on the go” requires supply of bulk quantities. Therefore, an
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Since, UFS and Nestles are examples of the foreign investments, there are possibilities where this type of entrants would come at a large scale and dislodging the competitor in the current industry. However, since the UFS have differentiation and experience from past mass branding and advertising, UFS have grown to enforce the barrier to entry. Further, UFS are investigating and research of new way of reach its customer base by using mobile application, thus deterring aspiring entrant accessing to the established distribution
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