Consumer Goods Industry Analysis Paper

By upgrading their brand, it will help to identify the qualities of the products that set it apart from the competition. They have to make the

Bargaining Power of Suppliers: The bargaining power of suppliers in the industry is low. There are numerous suppliers in this industry, and the large department stores have the ability to negotiate for the lowest prices. In addition, the switching costs are low, as the products are not highly differentiated. There are a large volume of purchases in the industry, allowing the department stores to exert even more power over the suppliers.

new brands are at very high risk of failing, as the consumer is more reachable when

Power of Suppliers - This is how much pressure suppliers can place on a business. If one supplier has a large enough impact to affect a company's margins and volumes, then it holds substantial power. Here are a few reasons that suppliers might have power:

In analyzing the market/industry, the company was able to see some things that helped shape their plan. The first was rivalry among competing sellers. Our analyses indicated that there were 9 companies in the shoe industry that Competitive Shoes considered rivals. These companies were relatively new in the industry and produced the same types of shoes as Competitive Shoes. Due to this fact, they knew that the rivalry would be fierce since Competitive Shoes was going to produce a product that was like theirs, and the difference between the products would diminish as the products of industry rivals became strongly differentiated. This indicated to Competitive Shoes that brand loyalty would be minimal and buyers could easily switch brands at will. Competitive Shoes felt that they could produce the same quality shoes as the high-end producers, while at the same time lowering its production cost and offering the product at a lower price. This would make it easy for buyers to switch brands at will.

The corporation I chose to discuss is McDonald’s. McDonald’s is a publicly traded corporation that includes the following domestic companies, McDonald’s, Chipotle Mexican Grill, and Boston Market. This paper will discuss the following:

In this instance, consumers would spend a greater amount of time researching the various competing brands before settling on a purchase. Products that fall into this category are computers, hand-phones, refrigerators etc. For me, this would be for skincare. If I had to switch from Brand A to Brand B,

The industry I have chosen for my paper is the Specialty retail industry or the clothing industry which has the SIC code of 5651. This industry consists of companies that are primarily in the business of clothing and accessories for men, women and children. These companies include unisex clothing stores and jeans stores for all ages instead of stores aimed at a particular age group or sex.

Supplier Power: This highlights that it is easy for suppliers to rise up their prices. This is determined by the number of suppliers, the uniqueness of their product, their control over the buyer, and the cost of changing from one buyer to another. The scarcer the supplier choices you might have, and the more you need the help and that

The risk of generic substitution is also increasing with especially China dominating the production market. Customers will substitute for a generic product if the disposable incomes of the customers reduce resulting in customers willing to trade down for a inferior but cheaper product.

Marketing has evolved through a change in production and consumption due to the advent of new technology (Ranchhod, 2004). The development of technology has also driven the globalisation of communication. During this period, consumers are facing a variety of choices (Jackson and Shaw, 2009). Thus, companies need to actively embrace these changing factors to grow their business and succeed in the marketplace.

Bargaining power of suppliers is low due to large number of suppliers of raw materials, low switching cost and availability of attractive substitutes. (Jim Wilkinson, 2013) Therefore, we could control the price of raw materials because we can easily switch to different suppliers with lower price and higher quality, increasing our profit consequently.

Procter & Gamble (P&G) is a world-leading producer of consumer goods. Today, it consists of over 20 million dollar brands (like Gillette) and operates in 42 countries

➢ Product differentiation - Products that are relatively the same will compete based on price. Brand identification can reduce rivalry.

Consumer behaviour is complex and a company has to fit their product more closely and satisfy their customer needs more fully than the