Big Bazaar has gotten a variety of companies that helped it in diversification and development of its product's profile. This is the extensive description of the Porter's design of five forces of Big Bazaar Business, given up Exhibit B.
Competitiveness
Big Bazaar is one of the top company in this competitive market with a number of strong competitors like Unilever, Kraft foods and Group DANONE. Big Bazaar is running well in this race for last 150 years. The competitors of other business with Big Bazaar is quite high.
Threat of New Entrants
A number of barriers are there for the new entrants to happen in the consumer food market. Just a couple of entrants succeed in this industry as there is a requirement to comprehend the consumer requirement which requires time while current competitors are aware and has actually progressed with the customer loyalty over their products with time. There is low risk of new entrants to Big Bazaar as it has rather big network of circulation globally controling with well-reputed image.
Bargaining Power of Suppliers
In the food and drink market, Big Bazaar owes the largest share of market requiring greater number of supply chains. In response, Big Bazaar has likewise been worried for its providers as it thinks in long-lasting relations.
Bargaining Power of Buyers
There is high bargaining power of the buyers due to excellent competitors. Switching cost is quite low for the consumers as lots of companies sale a number of comparable products. This appears to be a terrific hazard for any business. Thus, Big Bazaar makes certain to keep its consumers pleased. This has actually led Big Bazaar to be among the devoted business in eyes of its buyers.
Threat of Substitutes
There has been a fantastic hazard of replacements as there are replacements of a few of the Nestlé's items such as boiled water and pasteurized milk. There has also been a claim that a few of its items are not safe to utilize leading to the decreased sale. Hence, Big Bazaar began highlighting the health benefits of its items to cope up with the replacements.
Competitor Analysis
Big Bazaars covers a lot of the popular consumer brands like Package Kat and Nescafe and so on. About 29 brand names among all of its brand names, each brand name earned an income of about $1billion in 2010. Its huge part of sale is in North America constituting about 42% of its all sales. In Europe and U.S. the top significant brands offered by Big Bazaar in these states have a great respectable share of market. Likewise Big Bazaar, Unilever and DANONE are two big industries of food and drinks as well as its main competitors. In the year 2010, Big Bazaar had made its annual revenue by 26% boost because of its increased food and beverages sale particularly in cooking stuff, ice-cream, beverages based on tea, and frozen food. On the other hand, DANONE, due to the increasing costs of shares resulting an increase of 38% in its earnings. Big Bazaar lowered its sales expense by the adaptation of a new accounting procedure. Unilever has number of employees about 230,000 and functions in more than 160 nations and its London headquarter. 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 Big Bazaar. Unilever shares a market share of about 7.7 with Big Bazaar ending up being first and ranking DANONE as 3rd. Big Bazaar brings in local clients by its low cost of the product with the local taste of the products keeping its first place in the global market. Big Bazaar business has about 280,000 workers and functions in more than 197 nations edging its competitors in many areas. Big Bazaar has likewise lowered its expense of supply by presenting E-marketing in contrast to its rivals.
Keep in mind: A quick contrast of Big Bazaar with its close rivals is given up Exhibit C.
Exhibit B: Porter’s Five Forces Model
