Competitive Analysis of Cargills Food City

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[pic] [pic] [pic] CONTENT Page Porter’s five forces Model…………………………………………………………01 Factors affect Porter’s Five Forces Model ………………………………………02 Cargills Food City at a Glance……………………………………………………03 Analysis of porter’s five forces model in relation with cargills food city ……...03 Threats of New Entrants…………………………………………………………..03 Threat of Substitutes………………………………………………………………04 Degree of rivalry……………………………………………………………………05 Power of buyers…………………………………………………………………….06 Power of suppliers………………………………………………………………….07 References…………………………………………………………………………..07 Porter's five forces Model It is a framework for the industry analysis and business strategy development developed by Michael E.…show more content…
A retail chain requires a considerable amount of inputs such as workers, processed food items, milk products, fish & meat stuff, vegetables, fruits etc. There fore new firms will find it difficult to enable the access to those inputs quickly. This reduces the impact of a new entrant. Threat of Substitutes Cargills food cities existing substitutes are Keels Super, Arpico super center & Laugh sun up, co op cities of the government & recently established economic centers. Objective Analysis – Factors Degree of impact Switching costs 15 Number of substitutes available 15 Relative prices of substitutes 03 Perceived level of product differentiation 05 Buyer propensity to substitute 05 Overall impact 43% Switching cost is very low as customers of cargills do not have to do any additional sacrifice to switch for another substitute except for the additional price of the product. There for the switching cost has a considerable impact on cargills food city. Large scale self service retail chains like Keels Super, Arpico super center & Laugh sun up, are operating in almost all districts & cities of the country, further thare their are thousands of small scale retailers are operating around the country. As a result of that cargills food city face a fierce competition. There for the impact of Number of substitutes available in the market is very high for cargills food city. Compared
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