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The University Of Notre Dame Endowment Case Porter’s Five Forces Analysis

Case Study Solution And Analysis


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The University Of Notre Dame Endowment has obtained a number of companies that assisted it in diversification and growth of its item's profile. This is the extensive description of the Porter's model of 5 forces of The University Of Notre Dame Endowment Company, given in Display B.

Competitiveness

The University Of Notre Dame Endowment is one of the top company in this competitive market with a number of strong rivals like Unilever, Kraft foods and Group DANONE. The University Of Notre Dame Endowment is running well in this race for last 150 years. The competition of other companies with The University Of Notre Dame Endowment is rather high.

Threat of New Entrants

A number of barriers are there for the new entrants to happen in the consumer food market. Just a few entrants prosper in this industry as there is a need to comprehend the consumer need which requires time while recent rivals are well aware and has advanced with the customer commitment over their items with time. There is low hazard of brand-new entrants to The University Of Notre Dame Endowment as it has rather big network of distribution internationally dominating with well-reputed image.

Bargaining Power of Suppliers

In the food and drink market, The University Of Notre Dame Endowment owes the largest share of market needing higher number of supply chains. This triggers it to be an idyllic purchaser for the providers. Any of the supplier has never ever expressed any complain about cost and the bargaining power is likewise low. In response, The University Of Notre Dame Endowment has actually also been concerned for its suppliers as it thinks in long-term relations.

Bargaining Power of Buyers

Hence, The University Of Notre Dame Endowment makes sure to keep its customers satisfied. This has actually led The University Of Notre Dame Endowment to be one of the devoted company in eyes of its purchasers.

Threat of Substitutes

There has actually been a fantastic threat of alternatives as there are alternatives of a few of the Nestlé's products such as boiled water and pasteurized milk. There has actually also been a claim that a few of its products are not safe to use leading to the reduced sale. Hence, The University Of Notre Dame Endowment started highlighting the health benefits of its items to cope up with the substitutes.

Competitor Analysis

The University Of Notre Dame Endowments covers a lot of the popular customer brand names like Kit Kat and Nescafe and so on. About 29 brands among all of its brand names, each brand earned a profits of about $1billion in 2010. Its major part of sale is in The United States and Canada constituting about 42% of its all sales. In Europe and U.S. the leading major brand names offered by The University Of Notre Dame Endowment in these states have an excellent reputable share of market. Likewise The University Of Notre Dame Endowment, Unilever and DANONE are two big markets of food and beverages in addition to its main competitors. In the year 2010, The University Of Notre Dame Endowment had made its annual revenue by 26% boost due to the fact that of its increased food and beverages sale particularly in cooking things, ice-cream, beverages based upon tea, and frozen food. On the other hand, DANONE, due to the increasing prices of shares resulting a boost of 38% in its revenues. The University Of Notre Dame Endowment decreased its sales cost by the adaptation of a 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 actually become the second largest food and beverage market in the West Europe with a market share of about 8.6% with just a difference of 0.3 points with The University Of Notre Dame Endowment. Unilever shares a market share of about 7.7 with The University Of Notre Dame Endowment ending up being first and ranking DANONE as 3rd. The University Of Notre Dame Endowment brings in regional clients by its low expense of the product with the regional taste of the products maintaining its top place in the international market. The University Of Notre Dame Endowment business has about 280,000 staff members and functions in more than 197 countries edging its rivals in lots of areas. The University Of Notre Dame Endowment has actually likewise decreased its cost of supply by presenting E-marketing in contrast to its competitors.
Keep in mind: A short comparison of The University Of Notre Dame Endowment with its close competitors is given in Exhibition C.

Exhibit B: Porter’s Five Forces Model