Daqi has actually acquired a number of companies that assisted it in diversity and growth of its product's profile. This is the detailed description of the Porter's design of five forces of Daqi Company, given up Display B.
Competitiveness
Daqi is one of the leading company in this competitive industry with a number of strong rivals like Unilever, Kraft foods and Group DANONE. Daqi is running well in this race for last 150 years. The competitors of other business with Daqi is rather high.
Threat of New Entrants
A variety of barriers are there for the new entrants to occur in the customer food market. Only a few entrants prosper in this market as there is a need to comprehend the customer need which requires time while recent rivals are aware and has advanced with the customer commitment over their products with time. There is low danger of new entrants to Daqi as it has rather large network of distribution worldwide dominating with well-reputed image.
Bargaining Power of Suppliers
In the food and drink market, Daqi owes the largest share of market requiring higher number of supply chains. In action, Daqi has likewise been concerned for its providers as it believes in long-term relations.
Bargaining Power of Buyers
Hence, Daqi makes sure to keep its consumers pleased. This has led Daqi to be one of the devoted company in eyes of its buyers.
Threat of Substitutes
There has been a great threat of alternatives as there are substitutes of some 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 resulting in the reduced sale. Therefore, Daqi began highlighting the health advantages of its products to cope up with the replacements.
Competitor Analysis
It has actually ended up being the second biggest food and beverage market in the West Europe with a market share of about 8.6% with only a distinction of 0.3 points with Daqi. Daqi draws in local costumers by its low expense of the product with the regional taste of the products maintaining its very first location in the international market. Daqi company has about 280,000 employees and functions in more than 197 countries edging its competitors in many regions.
Note: A short comparison of Daqi with its close rivals is given in Exhibition C.
Exhibit B: Porter’s Five Forces Model
