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Satisfactory Essays
Threat of Entry
Threat of Substitutes Power of suppliers
Power of Buyers
Competitive Rivalry
When there are large numbers of customers, no one customer tends to have bargaining leverage.
Buying power is low-medium as Heinz products are very evenly distributed between large players in the market and small distributors.
Entry barriers are law as raw materials are easily accessible, and there is no government policies prohibiting entry into the market
Exit barriers are low: When exit barriers are low, weak firms are more likely to leave the market, which will increase the profits for the remaining firms. The power of suppliers is low because Heinz doesn't depend on any particular supplier i.e. row materials are easily obtained. Many of Heinz suppliers may depend more on Heinz than Heinz depends on them.
The Competitive Rivalry is medium to high. There is a threat of substitute products not only from the Heinz. Number of Competitors is high in the market but however product differentiation is low between competitors.
A lower quality product means a customer is less likely to switch from Heinz to another product or service. of different companies like Del Monte Foods Company, Tesco or Nestle. Heinz has good quality brand name.

Threat of Entry
Threat of Substitutes Power of suppliers
Power of Buyers
Competitive Rivalry
When there are large numbers of customers, no one customer tends to have bargaining leverage.
Buying power is low-medium as Heinz products are very evenly distributed between large players in the market and small distributors.
Entry barriers are law as raw materials are easily accessible, and there is no government policies prohibiting entry into the market
Exit barriers are low: When exit barriers are low, weak firms are more likely to leave the market, which will increase the profits for the remaining firms. The power of suppliers is low because Heinz doesn't depend on any particular supplier i.e. row materials are easily obtained. Many of

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