Musimundo has acquired a number of business that helped it in diversity and development of its product's profile. This is the extensive description of the Porter's model of 5 forces of Musimundo Business, given in Exhibition B.
Competitiveness
There is severe competitors in the market of food and drinks. Musimundo is among the leading company in this competitive industry with a number of strong rivals like Unilever, Kraft foods and Group DANONE. Musimundo is running well in this race for last 150 years. Each business has a certain share of market. This rivalry is not just limited to the rate of the item but also for quality, innovation and variation. Every industry is aiming hard for the maintenance of their market share. The competitors of other companies with Musimundo is rather high.
Threat of New Entrants
A variety of barriers are there for the new entrants to occur in the consumer food market. Only a few entrants prosper in this market as there is a need to comprehend the customer need which needs time while recent competitors are well aware and has progressed with the customer loyalty over their items with time. There is low threat of brand-new entrants to Musimundo as it has quite big network of circulation internationally controling with well-reputed image.
Bargaining Power of Suppliers
In the food and drink market, Musimundo owes the largest share of market needing greater number of supply chains. In action, Musimundo has also been worried for its providers as it believes in long-lasting relations.
Bargaining Power of Buyers
Therefore, Musimundo makes sure to keep its customers satisfied. This has actually led Musimundo to be one of the loyal business in eyes of its purchasers.
Threat of Substitutes
There has been a fantastic hazard of substitutes as there are replacements of some of the Nestlé's products such as boiled water and pasteurized milk. There has actually likewise been a claim that a few of its products are not safe to utilize resulting in the decreased sale. Thus, Musimundo began highlighting the health benefits of its items to cope up with the substitutes.
Competitor Analysis
It has ended up being the second biggest food and drink market in the West Europe with a market share of about 8.6% with just a difference of 0.3 points with Musimundo. Musimundo attracts local clients by its low expense of the item with the local taste of the products preserving its very first place in the worldwide market. Musimundo business has about 280,000 workers and functions in more than 197 countries edging its rivals in many areas.
Note: A short comparison of Musimundo with its close rivals is given in Exhibition C.
Exhibit B: Porter’s Five Forces Model
