Seitel Inc has actually obtained a variety of business that assisted it in diversification and development of its product's profile. This is the extensive explanation of the Porter's model of 5 forces of Seitel Inc Business, given in Exhibit B.
Competitiveness
Seitel Inc is one of the leading company in this competitive industry with a number of strong rivals like Unilever, Kraft foods and Group DANONE. Seitel Inc is running well in this race for last 150 years. The competition of other business with Seitel Inc is quite high.
Threat of New Entrants
A variety of barriers are there for the new entrants to occur in the customer food industry. Just a couple of entrants succeed in this market as there is a requirement to comprehend the customer need which requires time while recent rivals are well aware and has progressed with the customer loyalty over their items with time. There is low hazard of new entrants to Seitel Inc as it has quite large network of circulation worldwide controling with well-reputed image.
Bargaining Power of Suppliers
In the food and drink market, Seitel Inc owes the largest share of market requiring higher number of supply chains. In reaction, Seitel Inc has actually also been concerned for its suppliers as it thinks in long-term relations.
Bargaining Power of Buyers
Thus, Seitel Inc makes sure to keep its clients satisfied. This has actually led Seitel Inc to be one of the devoted company in eyes of its purchasers.
Threat of Substitutes
There has been a fantastic risk of replacements as there are replacements of some of the Nestlé's items such as boiled water and pasteurized milk. There has actually likewise been a claim that a few of its items are not safe to use leading to the reduced sale. Hence, Seitel Inc began highlighting the health benefits of its items to cope up with the replacements.
Competitor Analysis
Seitel Incs covers many of the popular customer brand names like Set Kat and Nescafe and so on. About 29 brand names amongst all of its brands, each brand earned a revenue of about $1billion in 2010. Its huge part of sale remains in The United States and Canada constituting about 42% of its all sales. In Europe and U.S. the top significant brands sold by Seitel Inc in these states have a fantastic reliable share of market. Seitel Inc, Unilever and DANONE are two large markets of food and drinks as well as its primary competitors. In the year 2010, Seitel Inc had earned its annual earnings by 26% boost since of its increased food and drinks sale specifically in cooking stuff, ice-cream, beverages based upon tea, and frozen food. On the other hand, DANONE, due to the increasing rates of shares resulting a boost of 38% in its profits. Seitel Inc lowered its sales expense by the adjustment of a brand-new accounting treatment. Unilever has number of staff members about 230,000 and functions in more than 160 nations and its London headquarter also. It has 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 Seitel Inc. Unilever shares a market share of about 7.7 with Seitel Inc ending up being first and ranking DANONE as third. Seitel Inc draws in local clients by its low cost of the item with the regional taste of the items keeping its top place in the international market. Seitel Inc company has about 280,000 employees and functions in more than 197 nations edging its rivals in lots of regions. Seitel Inc has likewise reduced its expense of supply by introducing E-marketing in contrast to its rivals.
Keep in mind: A quick contrast of Seitel Inc with its close rivals is given in Exhibition C.
Exhibit B: Porter’s Five Forces Model
