Porter Five Forces Analysis: The Kraft Foods Company

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Porter 5-Forces analysis: Kraft Foods Company The bargaining power of suppliers The beverage and food sector appear to be extremely competitive in nature. The suppliers are offering competitive prices that make it difficult to remain in the industry. In this industry, the suppliers are not holding much power needed to drive Kraft Foods as a hub for their profits. The bargaining power of buyers The preferences of buyers are constantly changing as time pass and customers are likely to shift from sellers who offer poor quality to sellers who provide high quality at a low price. In this case, Wal-Mart has been a major player. The company is offering low prices at high quality products thus attracting the attention of buyers. The opportunity is evident for buyers to extract firm and industry profits (Rieple & Haberberg, 2010). The threat of new players The market already has too many competitors and the chances for new comers to step their foot are very minimal. New comers do not have an opportunity to obtain a market share in this industry. The current players in the industry have already spent extensively on their positioning, brands and quality. Thus has made it difficult for any new comer to attract and convince consumers to switch companies (Luffman, Lea & Kenny, 2011). Rivalry among existing players The beverage and food industry is well known to have harsh competition. The only infrastructure through which players in this industry can retain their market share

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