Frozen Food Five Force Analysis

Topics: Food, Food preservation, Material Pages: 2 (416 words) Published: September 16, 2008
1. Bargaining power of suppliers < Low >
In food business, there are plenty of suppliers who sell raw material such as vegetables, meats, and other ingredients that used in the process of producing frozen foods. Since lots of supplier who sell the same kinds of raw materials, all of these suppliers must compete against each other to get the customers because we have the same target market. They suppliers sell them at the low price because when the frozen food companies purchase the raw materials, they must be in large quantities.

As the reason provide above, the company has the solution to prevent the situation that compete against each other by joining the company together to purchase the raw material. So, we will get the lower price because we purchase large volume than the past.

2. Bargaining power of buyers < low > (อำนาจการต่อรองของลูกค้า) The same type of company join together to purchase the raw material so they get the same price. As this reason the power of the customers for bargaining will be low. Because the suppliers sell the product at the same price.

3. Rivalry < Low >
When mentioning about the frozen food that sells the ready meal to the customers in the USA, it is considered to be less number of Frozen Foods Company. There are not many companies that provide Pat-Thai ready meal to the customers.

4. Substitute products < High >
As the Ok company is in the food industry, there are so many substitute products that can provide the same need to the consumers such as other types of food and will replace the demand for our products. For example, the restaurant, the Canned Fruit beverages that are sold in retail shops for food industry; there are a lot of foods that can substitute the dishes of our frozen foods, which can easily find everywhere.

5. Threats of new entrance < High > (ภัยคุกคามจากผู้แข่งขันหน้าใหม่) There are some competitors who are willing to operate the same business as Ok company which produce Pad...
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