Wework has actually acquired a number of business that helped it in diversification and development of its product's profile. This is the extensive description of the Porter's design of 5 forces of Wework Business, given up Exhibit B.
Competitiveness
There is severe competition in the market of food and beverages. Wework is among the top business in this competitive industry with a number of strong competitors like Unilever, Kraft foods and Group DANONE. Wework is running well in this race for last 150 years. Each business has a guaranteed share of market. This competition is not just restricted to the cost of the item but likewise for quality, innovation and variation. Every industry is striving hard for the upkeep of their market share. However, the competition of other business with Wework is rather high.
Threat of New Entrants
A number of barriers are there for the new entrants to take place in the consumer food market. Just a couple of entrants be successful in this industry as there is a requirement to understand the consumer need which requires time while current rivals are well aware and has advanced with the customer commitment over their items with time. There is low risk of new entrants to Wework as it has quite big network of distribution worldwide controling with well-reputed image.
Bargaining Power of Suppliers
In the food and drink market, Wework owes the biggest share of market needing higher number of supply chains. In response, Wework has likewise been worried for its suppliers as it thinks in long-term relations.
Bargaining Power of Buyers
Hence, Wework makes sure to keep its consumers satisfied. This has led Wework to be one of the faithful company in eyes of its buyers.
Threat of Substitutes
There has actually been a terrific risk of alternatives as there are alternatives 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 products are not safe to utilize leading to the reduced sale. Therefore, Wework started highlighting the health advantages of its items to cope up with the replacements.
Competitor Analysis
It has become the second biggest 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 Wework. Wework attracts local costumers by its low cost of the item with the local taste of the items keeping its first place in the global market. Wework company has about 280,000 workers and functions in more than 197 nations edging its competitors in many regions.
Note: A brief comparison of Wework with its close competitors is given in Display C.
Exhibit B: Porter’s Five Forces Model
