Competitive Analysis of Cargills Food City
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CONTENT Page
Porter’s five forces Model…………………………………………………………01
Factors affect Porter’s Five Forces Model ………………………………………02
Cargills Food City at a Glance……………………………………………………03
Analysis of porter’s five forces model in relation with cargills food city ……...03
Threats of New Entrants…………………………………………………………..03
Threat of Substitutes………………………………………………………………04
Degree of rivalry……………………………………………………………………05
Power of buyers…………………………………………………………………….06
Power of suppliers………………………………………………………………….07
References…………………………………………………………………………..07
Porter's five forces Model
It is a framework for the industry analysis and business strategy development developed by Michael E. Porter of Harvard Business School in 1979. It draws upon Industrial Organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Attractiveness in this context refers to the overall industry profitability. An "unattractive" industry is one in which the combination of these five forces acts to drive down overall profitability. A very unattractive industry would be one approaching "pure competition", in which available profits for all firms are driven down to zero.
Three of Porter's five forces refer to competition from external sources. The remainder are internal threats. It is useful to use Porter's five forces in conjunction with SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats).
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Factors which affect each force of the model
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Cargills Food City at a glance –
Cargills (Ceylon) PLC is a Sri Lankan corporate established in 1844 and built on a strong foundation of values and ethics. Guided by trusted leadership it spearheads the sustainable development of the food industry in Sri Lanka.
Its continuous investment in retail has made the Cargills retail arm Cargills Food City the largest retailer in the
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CONTENT Page
Porter’s five forces Model…………………………………………………………01
Factors affect Porter’s Five Forces Model ………………………………………02
Cargills Food City at a Glance……………………………………………………03
Analysis of porter’s five forces model in relation with cargills food city ……...03
Threats of New Entrants…………………………………………………………..03
Threat of Substitutes………………………………………………………………04
Degree of rivalry……………………………………………………………………05
Power of buyers…………………………………………………………………….06
Power of suppliers………………………………………………………………….07
References…………………………………………………………………………..07
Porter's five forces Model
It is a framework for the industry analysis and business strategy development developed by Michael E. Porter of Harvard Business School in 1979. It draws upon Industrial Organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Attractiveness in this context refers to the overall industry profitability. An "unattractive" industry is one in which the combination of these five forces acts to drive down overall profitability. A very unattractive industry would be one approaching "pure competition", in which available profits for all firms are driven down to zero.
Three of Porter's five forces refer to competition from external sources. The remainder are internal threats. It is useful to use Porter's five forces in conjunction with SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats).
[pic]
Factors which affect each force of the model
[pic]
[pic]
Cargills Food City at a glance –
Cargills (Ceylon) PLC is a Sri Lankan corporate established in 1844 and built on a strong foundation of values and ethics. Guided by trusted leadership it spearheads the sustainable development of the food industry in Sri Lanka.
Its continuous investment in retail has made the Cargills retail arm Cargills Food City the largest retailer in the
References: – 1. www.quickmba.com/strategy/porter.shtml 2. www.themanager.org/pdf/p5f.pdf 3. www.cargillsceylon.com/ ----------------------- Name – Rajitha Ambegoda. Subject – Business Strategy. Enrol Nm – 7LU 215. Batch – OCT 2010 – Sem - VI