Porter’s Five Forces Model
- Bargaining power of buyers (high)
Buyers have the freedom to switch to
sellers who offer cream cheese substitutes of the acceptable quality
- Threat of new entrants (insignificant)
The industry is very competitive,
it will be difficult to make the buyer switch to a new and unknown brand if it
appears in the market
- Intensity of rivalry (high)
Despite the high competition in the
market Milka Philadelphia
is able to attract many customers because of the well-known brand and loyalty
among consumers
- Threat of substitutes (significant)
There is a wide range of substitutes of both Russian and foreign producers such as chocolate spreads, jam, honey, cream cheese
- Bargaining power of suppliers (low)
The
company can choose from a wide variety of both local and international
suppliers
Guys, could you please specify, whether you are going to produce Milka in Russia or you are going just to import?
ReplyDeleteAlina V.
Hi, I cannot quite agree with your statement that the threat of new entrants is insignificant as there is a strong competitor prepring to enter the market. See the comments in your article "7 reasons to enter Russia"
ReplyDeleteAlso I would like to ask whether you are thinking about creating an alliance with other producers as the production process will be very similar and you might cut cost and lover your proce to a wholy new and COMPETITIVE level.
Like your Porter´s model. good luck with presentation!