Michael Porter’s five forces framework analysis

A. Threat of substitutes(High)
1. Multiple brands
2. Narrow product differentiation under different brands
3. Aggressive price wars

B. Bargaining power of suppliers(Low)

1. Larger FMCG companies are able to dictate the price through local sourcing from a
fragmented group of key commodity suppliers

C. Competitive Rivalry(High)
1. Private label brands by retailers are priced at a discount limiting competition from weak
brands
2. Highly fragmented industry with multiple MNCs entering the market.

D. Bargaining Power of buyers

1. Low switching cost reduced brand loyalty.
2. Strong influence of marketing strategies.
3. Availability of me-too or alternatives.

E. Threats of new entrants

1. Substantial investments required in setting up distribution network and promoting brands.
2. Aggressive spending on advertisements.