Uk Cheese Industry Analysis

Topics: Porter five forces analysis, Cheese, Strategic management Pages: 22 (7563 words) Published: July 29, 2013
Business Analysis Report
The UK Cheese Industry

Written by Jiayun Shen

Content
1、Introduction ........................................................................................................... 3 2、Remote Environment ............................................................................................ 3 2.1 Industry Introduction ....................................................................................... 4 2.2 PEST Analysis ................................................................................................ 5 Political/Legal factors ............................................................................................... 5 Economic factors ..................................................................................................... 6 Social/Cultural factors .............................................................................................. 7 Technological factors ............................................................................................... 8

3、Operating Environment ....................................................................................... 10 3.1 Industry Structure ......................................................................................... 10 Applying Porter's model to the UK cheese industry ................................................. 11

3.2 Porter's Five Forces Analysis ....................................................................... 12 Threat of entry ........................................................................................................12 Threat of Substitutes ...............................................................................................13 The power of Suppliers ...........................................................................................15 The power of Buyers ...............................................................................................15 Rivalry among existing competitors .........................................................................16

4、Conclusion .......................................................................................................... 20 5、Limitations ........................................................................................................... 21 6、Appendices ......................................................................................................... 22 7、References.......................................................................................................... 23

2

1、Introduction
"Many consumers appear to increasingly view cheese as a small indulgence for which health is not a major consideration.” said Chris Wisson, Senior Food Analyst. The UK cheese industry embraces a mature market which has been fairly stable and has continued improving year on year. A recent survey reveals that 99% of households in UK regularly purchase cheese and indicates that cheese remains a popular fridge staple, with consumers using it in a variety of ways (British Cheese Board, 2011). This report analyse the UK cheese industry based on the UK retail market. The definition includes all types of cheese sold through the grocery retail channel for home use, excluding the consumption for catering or other food service usages. The purpose of this report is to determine the attractiveness and competences of the UK cheese industry. And since the cheese industry is stable but also stagnant, this report is trying to figure out if there exist any future opportunities to boost the industry. In this report, an industry analysis has been undertaken in the framework of a PEST analysis. The PEST analysis exposes factors in the remote environment that affect the business’s capability to operate effectively and efficiently within the industry. More importantly, the PEST analysis has been used to predict to what extent the significant factors could possibly impact the UK cheese industry...
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