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Female Health Company Case Porter’s Five Forces Analysis

Case Study Solution And Analysis


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Female Health Company has actually gotten a variety of companies that helped it in diversification and growth of its item's profile. This is the extensive description of the Porter's design of 5 forces of Female Health Company Business, given in Exhibition B.

Competitiveness

Female Health Company is one of the top business in this competitive industry with a number of strong competitors like Unilever, Kraft foods and Group DANONE. Female Health Company is running well in this race for last 150 years. The competition of other business with Female Health Company is rather high.

Threat of New Entrants

A variety of barriers are there for the brand-new entrants to occur in the consumer food market. Only a few entrants prosper in this industry as there is a requirement to understand the consumer need which needs time while current rivals are aware and has advanced with the customer commitment over their items with time. There is low risk of brand-new entrants to Female Health Company as it has rather big network of circulation globally controling with well-reputed image.

Bargaining Power of Suppliers

In the food and beverage market, Female Health Company owes the largest share of market needing greater number of supply chains. In action, Female Health Company has actually also been worried for its providers as it thinks in long-term relations.

Bargaining Power of Buyers

There is high bargaining power of the buyers due to great competition. Changing expense is rather low for the consumers as numerous companies sale a number of comparable products. This seems to be a great hazard for any company. Thus, Female Health Company makes certain to keep its customers satisfied. This has actually led Female Health Company to be among the devoted company in eyes of its purchasers.

Threat of Substitutes

There has actually been a great hazard of alternatives as there are alternatives of some of the Nestlé's items such as boiled water and pasteurized milk. There has actually also been a claim that some of its items are not safe to use leading to the reduced sale. Thus, Female Health Company began highlighting the health advantages of its items to cope up with the replacements.

Competitor Analysis

Female Health Companys covers a lot of the popular consumer brands like Set Kat and Nescafe and so on. About 29 brands among all of its brands, each brand name earned an income of about $1billion in 2010. Its major part of sale is in North America making up about 42% of its all sales. In Europe and U.S. the top major brand names sold by Female Health Company in these states have a fantastic respectable share of market. Also Female Health Company, Unilever and DANONE are 2 big markets of food and drinks along with its main rivals. In the year 2010, Female Health Company had actually made its annual earnings by 26% boost since of its increased food and drinks sale specifically in cooking stuff, ice-cream, drinks based on tea, and frozen food. On the other hand, DANONE, due to the increasing costs of shares resulting a boost of 38% in its earnings. Female Health Company lowered its sales expense by the adjustment of a brand-new accounting treatment. Unilever has number of employees about 230,000 and functions in more than 160 nations and its London headquarter. It has become the second biggest food and drink market in the West Europe with a market share of about 8.6% with only a difference of 0.3 points with Female Health Company. Unilever shares a market share of about 7.7 with Female Health Company ending up being very first and ranking DANONE as third. Female Health Company attracts local customers by its low cost of the product with the local taste of the items maintaining its first place in the global market. Female Health Company business has about 280,000 workers and functions in more than 197 nations edging its rivals in many areas. Female Health Company has actually likewise minimized its expense of supply by introducing E-marketing in contrast to its rivals.
Note: A quick comparison of Female Health Company with its close competitors is given up Display C.

Exhibit B: Porter’s Five Forces Model