Flagstar Cos Inc has gotten a variety of business that helped it in diversification and development of its product's profile. This is the comprehensive description of the Porter's design of 5 forces of Flagstar Cos Inc Company, given up Exhibit B.
Competitiveness
Flagstar Cos Inc is one of the leading business in this competitive industry with a number of strong rivals like Unilever, Kraft foods and Group DANONE. Flagstar Cos Inc is running well in this race for last 150 years. The competitors of other companies with Flagstar Cos Inc is rather high.
Threat of New Entrants
A number of barriers are there for the new entrants to happen in the consumer food industry. Just a few entrants prosper in this industry as there is a need to comprehend the customer need which requires time while recent rivals are well aware and has advanced with the consumer commitment over their items with time. There is low threat of brand-new entrants to Flagstar Cos Inc as it has quite large network of distribution worldwide controling with well-reputed image.
Bargaining Power of Suppliers
In the food and drink industry, Flagstar Cos Inc owes the biggest share of market requiring greater number of supply chains. This triggers it to be a picturesque buyer for the suppliers. Any of the supplier has never expressed any complain about cost and the bargaining power is likewise low. In action, Flagstar Cos Inc has likewise been worried for its suppliers as it thinks in long-lasting relations.
Bargaining Power of Buyers
Therefore, Flagstar Cos Inc makes sure to keep its consumers satisfied. This has led Flagstar Cos Inc to be one of the loyal company in eyes of its purchasers.
Threat of Substitutes
There has been a terrific threat of substitutes as there are alternatives of a few of the Nestlé's products such as boiled water and pasteurized milk. There has likewise been a claim that some of its items are not safe to use resulting in the reduced sale. Thus, Flagstar Cos Inc began highlighting the health benefits of its items to cope up with the substitutes.
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 just a distinction of 0.3 points with Flagstar Cos Inc. Flagstar Cos Inc brings in local clients by its low expense of the item with the local taste of the items maintaining its first place in the worldwide market. Flagstar Cos Inc business has about 280,000 employees and functions in more than 197 nations edging its rivals in lots of areas.
Note: A brief comparison of Flagstar Cos Inc with its close rivals is given in Exhibition C.
Exhibit B: Porter’s Five Forces Model
