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    MS Porter Analysis

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    Zaira
    The document analyzes the competitive environment for Nestle Milk Pak in the flavored milk subsector in Pakistan. It finds that: 1) The threat of new entrants is low due to the high costs of entry including building a production plant and obtaining regulatory licenses. 2) The bargaining power of suppliers is high because flavor suppliers can demand higher prices as demand for their products increases to make flavored milk. 3) Rivalry among existing competitors in the packaged milk industry is high because there are no significant competitive advantages and competition is based primarily on price.

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    MS Porter Analysis

    Uploaded by

    Zaira
    16 views1 page
    The document analyzes the competitive environment for Nestle Milk Pak in the flavored milk subsector in Pakistan. It finds that: 1) The threat of new entrants is low due to the high costs of entry including building a production plant and obtaining regulatory licenses. 2) The bargaining power of suppliers is high because flavor suppliers can demand higher prices as demand for their products increases to make flavored milk. 3) Rivalry among existing competitors in the packaged milk industry is high because there are no significant competitive advantages and competition is based primarily on price.

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    Porter Analysis on Nestle Flavored Milk

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    The document analyzes the competitive environment for Nestle Milk Pak in the flavored milk subsector in Pakistan. It finds that: 1) The threat of new entrants is low due to the high costs of entry including building a production plant and obtaining regulatory licenses. 2) The bargaining power of suppliers is high because flavor suppliers can demand higher prices as demand for their products increases to make flavored milk. 3) Rivalry among existing competitors in the packaged milk industry is high because there are no significant competitive advantages and competition is based primarily on price.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    16 views1 page

    MS Porter Analysis

    Uploaded by

    Zaira
    The document analyzes the competitive environment for Nestle Milk Pak in the flavored milk subsector in Pakistan. It finds that: 1) The threat of new entrants is low due to the high costs of entry including building a production plant and obtaining regulatory licenses. 2) The bargaining power of suppliers is high because flavor suppliers can demand higher prices as demand for their products increases to make flavored milk. 3) Rivalry among existing competitors in the packaged milk industry is high because there are no significant competitive advantages and competition is based primarily on price.

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    Threat of new Entrants - LOW:

    Cost of entry is quite high as it requires installation of a complete


    plant and regulatory licenses that make entry for a new comer hard.
    Therefore it would be safe to say that with a history
    of strong market share, a potentially sustainable
    brand and the existing success story of Milo, with a
    hefty 20% chunk of the overall flavored milk
    subsector, Nestle Milk Pak will remain a secure

    entity with less threats of new entrants to


    Bargaining Power of Suppliers HIGH:
    Flavor
    is
    product
    differentiation and a value
    addition by adding a product to
    the portfolio. Thus the bargaining
    power of suppliers remain high
    as additional milk supply is
    demanded from them in order to
    make flavored milk. Already the
    suppliers enjoy huge bargaining
    power, an increase in demand
    will strengthen their position in
    the supply chain of the industry.

    Rivalry among Competition - HIGH:


    Rivalry is high amongst the
    competitors of the packaged milk
    industry as there is no competitive
    edge which a company enjoys and
    the competition is highly revolving
    around price factors.

    Bargaining Power of Buyers


    MODERATE TO HIGH:
    The bargaining power of
    consumers may be high, but
    this is moderate for Milk Pak
    as it overtime has established
    brand
    loyalty
    &
    enjoys
    consumers top of mind. The
    bargaining
    power
    of
    customers is same for the sub
    sector of the flavored milk
    market.

    Threats of Substitutes MEDIUM:


    Open threat could be from cannibalization of the
    newly launched product by Milo as it enjoys a strong
    market share and a history while other threat could
    be from the fizzy drinks with different flavors.
    Although milk is a different category but a strong
    marketing campaign where a perception built that
    flavored milk is better for the children, offering health
    benefits as it has fortified iron and Vitamin A and C,
    the threat of substitute products could be lowered
    down.

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