Road Well Traveled Condensed Case Porter’s Five Forces Analysis

Case Study Solution And Analysis

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Road Well Traveled Condensed Case Study Solution

Road Well Traveled Condensed has acquired a variety of business that assisted it in diversity and development of its product's profile. This is the thorough explanation of the Porter's model of 5 forces of Road Well Traveled Condensed Company, given in Exhibition B.


There is severe competitors in the industry of food and drinks. Road Well Traveled Condensed is one of the top business in this competitive industry with a number of strong competitors like Unilever, Kraft foods and Group DANONE. Road Well Traveled Condensed is running well in this race for last 150 years. Each company has a definite share of market. This competition is not just restricted to the rate of the product however likewise for quality, development and variation. Every industry is striving hard for the upkeep of their market share. However, the competition of other companies with Road Well Traveled Condensed is quite high.

Threat of New Entrants

A number of barriers are there for the new entrants to happen in the consumer food market. Only a few entrants succeed in this industry as there is a requirement to comprehend the customer need which requires time while recent competitors are well aware and has actually advanced with the customer commitment over their products with time. There is low risk of brand-new entrants to Road Well Traveled Condensed as it has quite large network of circulation internationally controling with well-reputed image.

Bargaining Power of Suppliers

In the food and drink industry, Road Well Traveled Condensed owes the largest share of market needing higher number of supply chains. In response, Road Well Traveled Condensed has actually also been worried for its providers as it believes in long-lasting relations.

Bargaining Power of Buyers

There is high bargaining power of the purchasers due to terrific competitors. Changing cost is rather low for the consumers as numerous companies sale a number of similar products. This seems to be a fantastic threat for any business. Therefore, Road Well Traveled Condensed makes sure to keep its consumers pleased. This has actually led Road Well Traveled Condensed to be one of the loyal business in eyes of its purchasers.

Threat of Substitutes

There has actually been a fantastic threat of substitutes as there are substitutes of a few of the Nestlé's items such as boiled water and pasteurized milk. There has actually also been a claim that a few of its items are not safe to utilize resulting in the reduced sale. Therefore, Road Well Traveled Condensed began highlighting the health advantages of its items to cope up with the alternatives.

Competitor Analysis

It has become the second largest 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 Road Well Traveled Condensed. Road Well Traveled Condensed attracts local costumers by its low expense of the item with the regional taste of the products keeping its first place in the international market. Road Well Traveled Condensed company has about 280,000 employees and functions in more than 197 countries edging its competitors in many regions.
Note: A brief comparison of Road Well Traveled Condensed with its close rivals is given in Exhibit C.

Exhibit B: Porter’s Five Forces Model