Porter's Five Forces For Bread Cake

1981 Words8 Pages
AB is a bakery; it is a most popular cake production company in Sri Lanka, Colombo district. The company introduces a new product to the market and it is a Bread Cake which is healthy and tasty. And the product can be used for any purpose birthdays, gifts and etc. It is a product that all the age group will like it, and it is a most popular item in the industry. There are many types of cakes available in the market but Bread Cake is a new product in the market so definitely it will have a god expectation in the market. FAB arrange take away system and door to door delivery but the only case is FAB is only situated in Colombo district not in any other places. The vision of the company is to be the leader in Srilankan food industry.…show more content…
Since this is a new product there are alternatives for this so there will be a heavy competition so it is a challenge to the business to get customers to the innovated product. Threats of substitutes The existence of products outside of the realm of the common product boundaries increase the propensity of customers to switch to alternatives. In this method the threat of substitutes usually impacts an industry through price competition. Bargaining power of buyer The bargaining power of customers is also described as the market of outputs; the ability of customers to put the firm under pressure, which also affects the customer’s sensitivity to price changes. This is a new product so the company will start with a lower price so if the company maintains a reasonable price definitely the customers will come buy the product. Bargaining power of supplier The bargaining power of suppliers is also described as the market of inputs. Suppliers bargaining power impact the cost of the product. Segmentation criteria to be used for products in different

More about Porter's Five Forces For Bread Cake

Get Access