Unilever Porter's Five Forces Analysis

The case is about Loblaw companies Inc., a highly successful grocery chain in Canada. Loblaw is Canada’s largest food distributor. The major issue is the emergence of Wal-Mart, who is looking to pursue expanding their grocery line chain in the Canadian market. According to Yunna (2014), porter’s five forces model has been widely applied to analyze industry competition in various markets. Using Porter’s 5 Forces to analysis the issues of the case can be a useful tool in summarizing the attractiveness of the market or industry. According to Dobbs (2012), the five forces are the threats posed by competitive rivalry, powerful buyers, powerful suppliers, potential new entrants, and substitute products. The analysis of Porter’s five forces framework can be viewed in figure 1. The case describes the retailer-supplier relationships as power plays. As the scale would tilt in favor of the one wielding the most clout at a point in time. There are numerous manufacturers with various substitutions among the grocery store. However, a supermarket would lease out shelf space for rent. The manufacturers would pay the grocery store a combination of different allowance to obtain secure shelf and warehouse positions for its products. Ultimately the category manager had the final word, which left the manufacturers with little to no bargaining power.

Due to globalization and this fast-growing business environment, firms struggle to earn above-average returns. They strive to establish a competitive advantage in order to earn higher returns. It is not enough for firms to establish a competitive advantage, they should also figure out ways to sustain it. There are several factors that can affect the competitiveness of a firm including customers, suppliers, existing rivals, new entrants, and substitutes. Firms should take into account these factors in order to sustain their competitive advantage. This paper analyzes Yoffie 's (2009) Cola War case, assesses concentrate producers, bottlers, and retailers in terms of Porter’s (2008) five forces of competition and provides recommendations to Coca-Cola.

Fresh Direct got their start in New York City in July 2001, when co-founders Joseph Fedele and Jason Ackerman started the company. Since the start of the company in 2001, they have been through many changes in the leadership of the business, eight changes to the CEO over the last thirteen years. The most current CEO that is leading the business through the industry is Richard Braddock, he took the position in 2008, he took the position after serving as CEO for priceline.com because, he saw the potential for increasing growth within the company (Strategic Manangement). After searching many sites such as yahoo and google finance, as well as etrade etc., I was unable to find any actual profit or losses data for the last year due to the fact

Porter’s Five Forces can be used to analyze the carbonated soft drink industry in the United States. The first force is the threat of new entrants. Essentially, this is an analysis of the level of difficulty and number of challenges for new businesses to enter the market. The second force is the threat of substitutes. This is a detailed description of potential substitutes for the products in the industry. The third force is the bargaining power of suppliers. This analysis shows the amount of power that suppliers have over the businesses in the industry. The fourth force is the bargaining power of buyers. This is a summary of the negotiating power of the buyers, and the power they have over the business. The final force is the level of rivalry among the competitors. This is a measure of the intensity of the rivalry between all competitors in the industry. Each of these factors influence the industry. Assessing each force will help a business develop a successful business strategy.

A key component of managing a business effectively is having an understanding of the competitive environment in which that company operates weather it’s a large or small business. A way to access the competitive environment is the use of Porter’s model also known as Five Forces Analysis. The Five Forces Analysis was developed by Michael Porter of Harvard business school back in the late 1970’s. Ideally this analysis should be done before starting up your business. It can show you the likelihood of success of the company before you start it up. Even if your company is established the Five Forces Analysis is still extremely valuable. Once you understand the forces that are acting on and affecting your business being a success you will be in a much better position to develop strategies to combat those forces that are working against you. Porter identifies

The five forces used to analyze the level of competition formulated by Porter are the threat of new entrants, the bargaining power of suppliers, the bargaining power of buyers, the threat of substitute products or services and rivalry among existing competitors (M. E. Porter, 2008). Two additional forces, proposed by Boehlje & Olson (2010), provide an external dynamic to Porter’s original five forces, namely technology and other drivers of change. In order to use the Porter five forces as an adequate backbone for describing the competition in our desired sector, we need thorough knowledge of the factors comprising these forces. We begin by providing an overview of general important factors used in recent literature.

Porter’s framework or also known as Porter's five forces model, introduced by Michael E. Porter who have well analyze and richly identifies five competitive forces that shapen every industry and able to determine an industry's strengths, weaknesses, threats and opportunities. Bargaining power of supplier, bargaining power of buyer, degree of market competitive rivalry, potential entrants and degree of substitute are the five forces of Porter’s framework.

The Royal Bank of Canada (RBC) is the largest bank in Canada based on market capitalization. The bank was founded in Halifax, Nova Scotia in 1864 with the name, Merchants’ Bank of Halifax. Throughout the years, it has expanded globally through their offices in Canada, the U.S. and 49 other countries around the world. Royal Bank entered the 1990’s financially stable regardless of the severe economic challenges of the 1980’s. This allowed them to make strategic acquisitions of companies which paved the way for their transformation from retail bank to global financial services.

Porter’s five forces model describes 5 components. Buyer power, supplier power, threat of substitute products or services, threat of new entrants and rivalry among existing competitors. Using this scenario, I will explain every of these components.

Porter 's Five Forces Model is a critical instrument to break down an outer aggressive environment of the business. The model incorporates threat of entry, the threat of rivalry, the threat of suppliers, the threat of purchasers and threat of substitutes.

BEVERAGES: PEP and KO dominate the market globally and enjoy huge scale economies. Moreover, high entry costs, massive CAPEX requirements, strong brands coupled with huge advertising budgets, plus established distribution channels are material deterrents to new entrants.

Porter’s five model is defined as the framework that evaluate the position of a company in the external environment with focus drawn on the level of competitiveness (Roy 2011). The framework considers factors such as rivalry, substitute goods, the power of suppliers and buyers as well as new entrants. Four forces can influence the success of Michael Kors. The first one is competitive rivalry. Here, the struggle is about maintaining performance despite different tactics used by different companies to increase sales. For instance, Ralph Lauren uses premium prices for quality products to differentiate itself, while Coach uses product variety within the line of handbags to remain competitive (Stewart 2016). Also, when the industry is flooded with similar companies producing similar merchandise, the probability of a company stagnating is high because consumers have a variety to pick from. Hence, the need to establish loyal customers.

Michael Porter provided a framework that models an industry as being influenced by five forces. The strategic business manager seeking to develop an edge over rival firms can use this model to better understand the industry context in which the firm operates.

In the case of PepsiCo, analyzing the non-alcoholic beverage industry using Porter’s Five Force Analysis allows for assessment and adjustment to the strategic plans implemented to sustain competitive advantage. Porter’s Five Forces model helps outline the competitiveness of the current market through analysis of the industry rivalry between companies, supplier power, buyer power, threat of substitution, and the threat of new entries (Strategic Planning Tools, 2009). All of these forces affect not only a company but an industry. To begin, competitive rivalry within an industry analyzes the current competition within that market. When a market is competitive it “encourages companies to innovate, utilize production capacity, reduce costs and

Coca Cola is the largest company of the non-alcoholic beverages industry, controlling about 40% of the industry, followed by Pepsi with 20% control (Maverick 2015). Both companies are fully international, with a presence in over 200 countries, and are composed of numerous brands. Coca Cola, for example, owns about 500 brands, although the largest part of its profits stems from 21 of these brands. Overall, in 2016, the global non-alcoholic beverages industry was valued at $967.3 billion (Grand View Research 2017). Other key players in the industry include Nestle, Kraft Heinz Company, and the Pepper Snapple Group.