Marketing Management

The Mother Dairy Case Explanation using Porter's Five forces

Sahil Riaz
P152050

Dairy farmers and

milk suppliers sold
to co-operative firms
but there is no
switching cost to the
firms.
Effect : Low

Threat of
New
Entrants

Bargaining
power of
suppliers

Amul, local players

like Hatsun, Agro
and local milk sellers
make it a highly
competitive market.
Effect : Very High

Since the dairy

industry requires
a large seed
capital to enter
this industry.
Effect : Low

Competitive
Rivalry
within an
industry

Threat of
Substitutes

Bargaining
power of
customers

There is little scope for

quality difference in the
case of milk. Direct milk
suppliers provide milk at
a very low rate. So,
more bargaining
potential
Effect : High

A huge segment of
Indias population is
lacto-vegetarian
and for a majority,
meat is not
affordable.
Effect : Low