Hallstead Jewelers has acquired a variety of business that helped it in diversification and development of its product's profile. This is the thorough explanation of the Porter's design of five forces of Hallstead Jewelers Business, given in Exhibition B.
Competitiveness
Hallstead Jewelers is one of the leading company in this competitive market with a number of strong rivals like Unilever, Kraft foods and Group DANONE. Hallstead Jewelers is running well in this race for last 150 years. The competition of other companies with Hallstead Jewelers is rather high.
Threat of New Entrants
A variety of barriers are there for the new entrants to take place in the consumer food market. Just a couple of entrants prosper in this market as there is a need to comprehend the consumer need which needs time while recent competitors are aware and has progressed with the consumer loyalty over their items with time. There is low threat of brand-new entrants to Hallstead Jewelers as it has quite large network of circulation worldwide controling with well-reputed image.
Bargaining Power of Suppliers
In the food and beverage market, Hallstead Jewelers owes the biggest share of market requiring greater number of supply chains. In action, Hallstead Jewelers has also been concerned for its suppliers as it believes in long-term relations.
Bargaining Power of Buyers
Thus, Hallstead Jewelers makes sure to keep its customers satisfied. This has led Hallstead Jewelers to be one of the loyal company in eyes of its purchasers.
Threat of Substitutes
There has been a fantastic risk of replacements as there are substitutes of some of the Nestlé's products such as boiled water and pasteurized milk. There has likewise been a claim that a few of its items are not safe to use resulting in the reduced sale. Hence, Hallstead Jewelers began highlighting the health benefits of its products to cope up with the alternatives.
Competitor Analysis
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 Hallstead Jewelers. Hallstead Jewelers attracts local clients by its low expense of the item with the local taste of the products preserving its first location in the worldwide market. Hallstead Jewelers business has about 280,000 staff members and functions in more than 197 nations edging its competitors in many regions.
Keep in mind: A quick comparison of Hallstead Jewelers with its close rivals is given in Display C.
Exhibit B: Porter’s Five Forces Model
