Pestle Anaylsis of Snack Food

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Five Force Analysis
1. Suppliers
|Analysis Criteria |Risk Rating | | |High |Medium |Low | |Differentiation of Inputs |  |  |V | |Switching Costs |  |V |  | |Substitute Products |  |  |  | |Importance of volume to the supplier |  |  |V | |Impact of inputs on cost or differentiation |V |  |  | |Threat of forward integration |  |  |V | |Overall Risk Rating |  | | V |

Raw materials can be changed to other suppliers, but high costs of time & money are needed for searching new suppliers and to do the “quality check” on the raw materials to make sure they are in stable high quality. Even we have to bulky purchase from suppliers, it does not affect us so much since the production of preserved fruits is most important part and we own the formula ourselves.

2. Substitutes
|Analysis Criteria |Risk Rating | | |High |Medium |Low | |The relative price performance of substitutes |V |  |  | |Switching Costs |V |  |  | |Buyer propensity to substitute |  |  |V | |Overall Risk Rating |V |  |  |

Preserved fruits are not the compulsory daily items, they can be substituted by any snacks like candy, chips etc. Most of the substitutes are lower price than ours, the product types are more diversified and the packages are fancier as well. More, the promotion are all around us, for example, TV advertisement, magazines, internet etc. Therefore, there are easy to get the information from the substitutes. However, there are several types of people are quite high loyalty on the preserved fruits such as 60’s-70’s people and the Chinese traditional preserved fruits which are HK-made seekers. 3. Buyers

|Analysis Criteria |Risk Rating | | |High |Medium |Low | |Differentiation of outputs |  |  |V | |Switching costs |V |  |  | |Presence of Substitutes |V |  |  | |Industry concentration relative to buyer concentration |V |  |  | |Importance of volume to...
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