Eric Wood A has obtained a variety of companies that assisted it in diversification and growth of its item's profile. This is the comprehensive description of the Porter's model of 5 forces of Eric Wood A Company, given up Exhibit B.
Competitiveness
There is severe competitors in the market of food and drinks. Eric Wood A is among the leading company in this competitive market with a variety of strong rivals like Unilever, Kraft foods and Group DANONE. Eric Wood A is running well in this race for last 150 years. Each company has a guaranteed share of market. This rivalry is not simply limited to the cost of the product but likewise for quality, development and variation. Every industry is aiming hard for the maintenance of their market share. However, the competition of other business with Eric Wood A is quite high.
Threat of New Entrants
A number of barriers are there for the new entrants to occur in the consumer food industry. Only a few entrants succeed in this industry as there is a need to understand the customer need which needs time while recent rivals are aware and has actually progressed with the consumer commitment over their products with time. There is low hazard of brand-new entrants to Eric Wood A as it has quite big network of distribution globally dominating with well-reputed image.
Bargaining Power of Suppliers
In the food and drink industry, Eric Wood A owes the largest share of market needing greater number of supply chains. In action, Eric Wood A has also been worried for its suppliers as it thinks in long-lasting relations.
Bargaining Power of Buyers
There is high bargaining power of the buyers due to fantastic competitors. Switching cost is rather low for the consumers as many companies sale a variety of comparable products. This appears to be a terrific risk for any business. Hence, Eric Wood A ensures to keep its consumers pleased. This has led Eric Wood A to be among the faithful business in eyes of its buyers.
Threat of Substitutes
There has actually been an excellent threat of alternatives as there are substitutes of some of the Nestlé's items such as boiled water and pasteurized milk. There has also been a claim that some of its items are not safe to use resulting in the decreased sale. Thus, Eric Wood A started highlighting the health benefits of its products to cope up with the substitutes.
Competitor Analysis
It has actually become the second largest food and beverage market in the West Europe with a market share of about 8.6% with just a distinction of 0.3 points with Eric Wood A. Eric Wood A brings in regional costumers by its low cost of the item with the local taste of the products maintaining its very first place in the global market. Eric Wood A company has about 280,000 workers and functions in more than 197 countries edging its rivals in lots of regions.
Note: A short comparison of Eric Wood A with its close competitors is given in Exhibit C.
Exhibit B: Porter’s Five Forces Model
