Porter’s Five-Forces’ Analysis of the Spanish Olive Oil Industry

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  • Topic: Olive, Olive oil, Vegetable oils
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| Alicia Monzón|
| Strategic Management
2ºA
|

|
PORTER’S FIVE-FORCES’ ANALYSIS OF THE SPANISH OLIVE OIL INDUSTRY | The Spanish Olive Oil Industry

The Spanish Olive Oil Industry

Index

Introduction2
1.Intensity of current competence2
2.Menace of New Entrance3
3.Menace of substitute products3
4.Bargaining power of suppliers/ 5. customers4
Bibliography4

Introduction

The cultivation of olives and the production of olive oil have deep roots in the history of Spain. The olive, a symbol of peace, and the tree which produces olives (olea europea) are known to have been cultivated around the Mediterranean about 6000 years ago. Its origin could be the eastern Mediterranean, but most probably it originated in Greece. Stone tablets found dating back to 2500 BC from the court of King Minos of Crete make reference to this plant. The olive tree was brought to the Iberian Peninsula by the Phoenicians and the Greeks. Olive cultivation was expanded considerably by the Romans, who also improved the techniques of oil production. Olive oil from Hispania was highly regarded by the inhabitants of Old Rome, as well as by the rest of the Roman Empire, that considered it of superior quality.

Nowadays Spain is the world’s biggest producer of olive oil. With an average annual production of 700,000-800,000 tons, and more than 300 million olive trees covering more than 2 million hectares, its acreage represents more than 25% of the world's olive surface. The EU/27 production of olive oil accounts for about 73% of the world’s production of which Spain has a share of a 46%. Spain is also the first exporter worldwide, with an annual average in the last 10 years of about 400,000 tons exported. Spanish olive oil is exported to more than 100 countries on 5 continents to: EU, Australia, USA, Brazil, Japan and recently China as main destinations.

1. Intensity of current competence

Nowadays there are more than 44...
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