Pompeian Porter's 5 Forces Analysis

Positioning in 5 Forces
This section will discuss Porters 5 forces of competition and Pompeian is situated in each element. Company’s need not only to focus on the impact of their direct competition but also other external factors that could influence their strategy.
Threats of New Entry (Entry Barriers) – Pompeian needs to evaluate how other companies could enter the olive oil market and how quickly they could become a national distributor of the product. This threat is a low one for Pompeian, the barriers to enter are high for this industry. An early difficulty for a start up company would be sourcing product, many of the distributors have relationships and proven track records with suppliers making it hard for an unknown person in the field to get the same attention and supply to materials. If a company would think instead to cultivate their own crop, this too would be a massive undertaking. The time between planting new trees and
First the end users, the consumer for cooking oil has changed tremendously over time and continues to change with the social environment. In the past, it was common for a household to purchase a Gallon sized tin and use the oil as needed, today, Gallon sized tins are seen less on supermarket shelves, large sizes have moved to plastic and are commonly purchased in Club stores. Pompeian and other brands need to concentrate efforts on how millennials shop, prepare food and notice advertising. Website design is important to feature recipes that are easy, quick and will keep your product in mind when the end consumer goes to the shelf. Varied pack sizes are essential to the company’s growth, most new users to a product will not purchase a 1-2-liter size but would instead chose a ½ liter, pricing and promotions need to be maintained for all