Concordia Casting Co Case Porter’s Five Forces Analysis

Case Study Solution And Analysis

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Concordia Casting Co Case Study Analysis

Concordia Casting Co has actually acquired a variety of companies that assisted it in diversification and growth of its item's profile. This is the extensive explanation of the Porter's design of five forces of Concordia Casting Co Company, given in Exhibition B.


Concordia Casting Co is one of the top company in this competitive market with a number of strong competitors like Unilever, Kraft foods and Group DANONE. Concordia Casting Co is running well in this race for last 150 years. The competitors of other business with Concordia Casting Co is rather high.

Threat of New Entrants

A variety of barriers are there for the brand-new entrants to take place in the customer food industry. Only a few entrants succeed in this market as there is a requirement to understand the consumer requirement which requires time while recent competitors are aware and has actually advanced with the customer commitment over their products with time. There is low threat of new entrants to Concordia Casting Co as it has rather large network of circulation worldwide dominating with well-reputed image.

Bargaining Power of Suppliers

In the food and drink market, Concordia Casting Co owes the biggest share of market requiring higher number of supply chains. This triggers it to be a picturesque purchaser for the suppliers. Any of the supplier has actually never ever expressed any grumble about price and the bargaining power is likewise low. In reaction, Concordia Casting Co has actually likewise been concerned for its providers as it thinks in long-lasting relations.

Bargaining Power of Buyers

Therefore, Concordia Casting Co makes sure to keep its customers pleased. This has led Concordia Casting Co to be one of the faithful company in eyes of its buyers.

Threat of Substitutes

There has actually been a terrific threat of substitutes as there are replacements of some of the Nestlé's items such as boiled water and pasteurized milk. There has likewise been a claim that some of its products are not safe to utilize resulting in the decreased sale. Therefore, Concordia Casting Co started highlighting the health benefits of its items to cope up with the replacements.

Competitor Analysis

Concordia Casting Cos covers a number of the popular consumer brands like Package Kat and Nescafe and so on. About 29 brand names amongst all of its brand names, each brand name earned a revenue of about $1billion in 2010. Its huge part of sale is in The United States and Canada constituting about 42% of its all sales. In Europe and U.S. the leading significant brand names offered by Concordia Casting Co in these states have an excellent trusted share of market. Concordia Casting Co, Unilever and DANONE are two large industries of food and drinks as well as its primary rivals. In the year 2010, Concordia Casting Co had actually earned its annual profit by 26% boost due to the fact that of its increased food and beverages sale particularly in cooking things, ice-cream, drinks 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 earnings. Concordia Casting Co reduced its sales cost by the adjustment of a new accounting treatment. Unilever has number of workers about 230,000 and functions in more than 160 nations and its London headquarter. It has actually ended up being the second largest 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 Concordia Casting Co. Unilever shares a market share of about 7.7 with Concordia Casting Co becoming first and ranking DANONE as 3rd. Concordia Casting Co draws in local costumers by its low expense of the item with the regional taste of the products preserving its first place in the international market. Concordia Casting Co company has about 280,000 employees and functions in more than 197 nations edging its competitors in lots of regions. Concordia Casting Co has actually likewise minimized its expense of supply by presenting E-marketing in contrast to its rivals.
Keep in mind: A quick comparison of Concordia Casting Co with its close rivals is given up Exhibition C.

Exhibit B: Porter’s Five Forces Model