porter’s five force model

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PORTER’S FIVE FORCE MODEL PORTER’S FIVE FORCE MODEL

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Page 1: PORTER’S FIVE FORCE MODEL

PORTER’S FIVE FORCE MODELPORTER’S FIVE FORCE MODEL

Page 2: PORTER’S FIVE FORCE MODEL

About Parle About Parle • India's largest manufacturer of biscuits and confectioneryIndia's largest manufacturer of biscuits and confectionery

• Established in 1929 Established in 1929

• 35% share of the total biscuit market35% share of the total biscuit market

• Good And Reliable QualityGood And Reliable Quality

• Cater to all tastes from kids to senior citizensCater to all tastes from kids to senior citizens

• Products to the mass with the affordable rangeProducts to the mass with the affordable range

Page 3: PORTER’S FIVE FORCE MODEL

BISCUIT INDUSTRY BISCUIT INDUSTRY PROFILEPROFILE

Two Sectors of Biscuit Industry

Organised Sector60%

Un Organised Sector40%

Organised : Unorganised :: 40 : 60

Page 4: PORTER’S FIVE FORCE MODEL

BISCUIT INDUSTRY BISCUIT INDUSTRY MAJOR PLAYERSMAJOR PLAYERS

Major Mkt Share ( Organised Sector)

Parle G35%

Britania31%

Sunfeast9%

Priyagold15%

Others10%

Page 5: PORTER’S FIVE FORCE MODEL

RIVALRY AMONG

COMPETING FIRMS IN

INDUSTRY

Page 6: PORTER’S FIVE FORCE MODEL

COMPETITORSCOMPETITORS

• BRITANNIA AND ITC MAJOR BRITANNIA AND ITC MAJOR COMPETITORS.COMPETITORS.

• SIMILAR PRICINGSIMILAR PRICING

• SIMILAR PRODUCTSSIMILAR PRODUCTS

• DISTRIBUTION NETWORKDISTRIBUTION NETWORK

Page 7: PORTER’S FIVE FORCE MODEL

THREAT OF NEW

ENTRANT

Page 8: PORTER’S FIVE FORCE MODEL

THREAT OF NEW THREAT OF NEW ENTRANTENTRANT

• BARRIERS TO NEW ENTRANT BARRIERS TO NEW ENTRANT

• FINANCIAL STRENGTH FINANCIAL STRENGTH

• DISTRIBUTION NETWORKDISTRIBUTION NETWORK

• SWITCHING COST OF CUSTOMERSSWITCHING COST OF CUSTOMERS

Page 9: PORTER’S FIVE FORCE MODEL

THREAT OF SUBSTITUTES

Page 10: PORTER’S FIVE FORCE MODEL

SUBSTITUTESSUBSTITUTES• Size of the SNACKS INDUSTRY Size of the SNACKS INDUSTRY

• Changing needs of the consumerChanging needs of the consumer

• Switching cost of consumers is highSwitching cost of consumers is high

• Other substitutes like home made snacks, Other substitutes like home made snacks, chips, packed foods etc. chips, packed foods etc.

Page 11: PORTER’S FIVE FORCE MODEL

BARGAINING POWER OF

BUYERS

Page 12: PORTER’S FIVE FORCE MODEL

Bargaining Power Of Bargaining Power Of BuyerBuyer

• Large number of buyers for biscuitsLarge number of buyers for biscuits

• Most of the Parle biscuits are undifferentiated and can be Most of the Parle biscuits are undifferentiated and can be replaced by substitutes.replaced by substitutes.

• Customers liking of bakery products like pudding, toast, Customers liking of bakery products like pudding, toast, butter etc. butter etc.

• Customer can switch to other products easily.Customer can switch to other products easily.

Page 13: PORTER’S FIVE FORCE MODEL

BARGAINING POWER OF SUPPLIERS

Page 14: PORTER’S FIVE FORCE MODEL

Bargaining Power Of Bargaining Power Of SuppliersSuppliers

• EASY AVAILABILTY OF RAW EASY AVAILABILTY OF RAW MATERIALS.MATERIALS.

• INCREASING PRICE.INCREASING PRICE.

Page 15: PORTER’S FIVE FORCE MODEL

RIVALRY AMONG

COMPETING FIRMS IN

INDUSTRY

Threat of new

entrant

Threat of substitutes

Bargaining power of buyers

BARGAINING POWER OF SUPPLIERS

Page 16: PORTER’S FIVE FORCE MODEL

ROLL NO. NAME

71 NIRAJ HARKHANI

86 ABHISHEK PAI

94 YASHICA SALIAN

102 SUSHANT SHETTY

115 BHAVNA AILSINGHANI

SUBMITTED BYSUBMITTED BY