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    Power of Suppliers

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    Patrixia Nyah Miflores
    This document discusses Porter's Five Forces analysis of the food industry in the Philippines. It notes that contracts and relationships with suppliers can help small producers manage uncertainty. New entrants face significant capital requirements to establish brands and compete. Buyers have many options in the saturated Philippine food market, giving them power over sellers. Rivalry in the industry is high as it grows and competitors change prices and strategies to attract customers. The threat of substitutes occurs as competitors alter prices, allowing customers to easily switch between similar undifferentiated products.

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    Power of Suppliers

    Uploaded by

    Patrixia Nyah Miflores
    17 views2 pages
    This document discusses Porter's Five Forces analysis of the food industry in the Philippines. It notes that contracts and relationships with suppliers can help small producers manage uncertainty. New entrants face significant capital requirements to establish brands and compete. Buyers have many options in the saturated Philippine food market, giving them power over sellers. Rivalry in the industry is high as it grows and competitors change prices and strategies to attract customers. The threat of substitutes occurs as competitors alter prices, allowing customers to easily switch between similar undifferentiated products.

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    Power of suppliers

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    This document discusses Porter's Five Forces analysis of the food industry in the Philippines. It notes that contracts and relationships with suppliers can help small producers manage uncertainty. New entrants face significant capital requirements to establish brands and compete. Buyers have many options in the saturated Philippine food market, giving them power over sellers. Rivalry in the industry is high as it grows and competitors change prices and strategies to attract customers. The threat of substitutes occurs as competitors alter prices, allowing customers to easily switch between similar undifferentiated products.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    17 views2 pages

    Power of Suppliers

    Uploaded by

    Patrixia Nyah Miflores
    This document discusses Porter's Five Forces analysis of the food industry in the Philippines. It notes that contracts and relationships with suppliers can help small producers manage uncertainty. New entrants face significant capital requirements to establish brands and compete. Buyers have many options in the saturated Philippine food market, giving them power over sellers. Rivalry in the industry is high as it grows and competitors change prices and strategies to attract customers. The threat of substitutes occurs as competitors alter prices, allowing customers to easily switch between similar undifferentiated products.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Power of suppliers

    Low – Contracts and positive relationship with the suppliers and producers are another way a small
    agricultural producers can manage uncertainty and power of suppliers.

    New Entrants

    Food industry requires huge capital investment in order to be competitive and to establish a good brand
    name in the market.

    Be able to compete with other food businesses, new entrants need to have a huge amount of capital
    investment to stand out than other food businesses. Also, it is a challenge for entrants to give their
    innovative and creativity ideas to attract consumer and to establish a good reputation of the company.

    Power of Buyers

    Transaction between the seller and the buyer creates value for both parties. In the Philippines food
    industry or businesses are everywhere, that gives the buyer a lot of option to choose what kind of food
    they want to buy. It is advantage for all consumers but a huge threats and challenge for the business
    owners especially to those business that have the same product.

    Rivalry

    Food Industry is one of the fast-growing businesses worldwide, in the Philippines there is a lot of local
    and international food businesses that establish this year and it continuously growing yearly. Since, food
    industry is growing, the competition in food industry is also increasing.

    Food industry prioritize on gaining a competitive advantage by changing prices. Other businesses
    change their strategy on how they will be able to gain consumers and attract them than their
    competitors with the same product with theirs.

    Threats of substitutes

    The threats of substitutes in food industry occurs usually due to the competition in the price. Like for
    example in fast food chains if they able to maintain an average checked price, they will not lose
    consumers. If fast food chains produce a commodity product that is undifferentiated, customers can
    easily switch away into competitors product.

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