DANONE SUSTAINABILITY

PERFORMANCE
SUSTAINABILITY PERFORMANCE OF DANONE

Stakeholders Environmental Value Social Value Economic Value

Planet Value Created: Danone's goal is to
protect watersheds and their
natural ecosystems to ensure the
sustainability of water resources
where they operate.
Value Destroyed: Use of plastic
bottles which pollute the seas and
oceans
Value Created: They offer Value Created:
healthier food to their customers Value Destroyed: None.
using sustainable natural
resources.
Value Destroyed: Danone does
not have policies to protect
local communities
Danone has been accused of
drying up the source in the
Volvic region to the detriment of
the inhabitants.

Customers Value Created: Products more
environmental-friendly
Value Destroyed:Degradation of
the quality of life
Value Created: They take care of
the health of their customers
Loyalty
Value Destroyed: Loss of faith
Value Created: Competitive prices
making food available for a good
number of customers
Value Destroyed: None
SUSTAINABILITY PERFORMANCE OF DANONE

Stakeholders Environmental Value Social Value Economic Value

Governments Value Created: Contribution to
and reinforcement of
government regulations
Value Destroyed: Interventions
from the government (use of
resources)
Value Created:They help to Value Created: Taxes, direct and
reduce the social disparities indirect jobs.
existing between the rich and
poor through social objectives
predefined Value Destroyed: anti competitive
practice in Chinese market
Value Destroyed: None

Performance Assessment

Value Created High High Low

Value
Low High Low
Destroyed
THE FRENCH DAIRY
INDUSTRY

French dairy industry, 2018.
PORTER’S FIVE FORCES
MODEL
1. Name the industry clearly, its
place and time.
2. Identify the actors (number
and size) in each force and
group them (into
sub-industries).
3. Evaluate the strength of each
force, their trends and their
underlying factors.
4. Identify opportunities and
threats.
5. Assess the overall industry
attractiveness.
6. Determine how to position
your business in relation to the
five forces. 5
 SUPPLY CHAIN
1. Name the industry clearly, its
place and time.
Upstream of
the supply Milk producers
2. Identify the actors (number
chain
and size) in each force and
group them (into
Producers of milk,
machinery and Suppliers sub-industries).
equipment, energy…
3. Evaluate the strength of each
Scope of the force, their trends and their
Dairy producers company’s underlying factors.
activities
4. Identify opportunities and
threats.
Supermarkets Buyers
Downstream of 5. Assess the overall industry
the supply attractiveness.
chain
Dairy consumers 6. Determine how to position
your business in relation to the
five forces. 6
 2000 local farmers
partners, offering 2. Bargaining Goods of first necessity so
b quality milk is a not substitutable.
Power of Appearance of lactose-free
major stake. Suppliers products because more
and more consumers 1. Name the industry clearly, its
lactose-intolerant and that place and time.
make healthier choices
(vegetarians, vegans). 2. Identify the actors (number
5. Rivalry
4. Threat of and size) in each force and
3. Threat of Among
Substitute group them (into
New Entrants Existing
Products sub-industries).
Competitors
No new entrant into the 3. Evaluate the strength of each
dairy industry because of Oligopolistic market force, their trends and their
the giant firms already Top 2 worldwide, underlying factors.
implanted. The cost of 27,2% of dairy
research and starting a 1. Bargaining
industry 4. Identify opportunities and
firm is high, and the Power of Nestle #1 threats.
giants are already Buyers Switzerland
implanted and highly Lactalis #3 France 5. Assess the overall industry
competitive in terms of • Increased competition
Dairy farmer of attractiveness.
prizes and economies of • Dairy products companies'
America #4 US
scale. dependence on distribution 6. Determine how to position
chains
your business in relation to the
five forces. 7
 Steady
European law sets the
price of milk upwards so
2. Bargaining
that producers can Power of
Strong :
survive Suppliers
Large choice of products
for various consumers 1. Name the industry clearly, its
(vegan products, place and time.
lactose-free products…)
2. Identify the actors (number
5. Rivalry
4. Threat of and size) in each force and
3. Threat of Among
Substitute group them (into
New Entrants Existing
Products sub-industries).
Competitors
Strong and steady: 3. Evaluate the strength of each
Danone brand name is Strong: force, their trends and their
highly recognized in the Increase of underlying factors.
market and she has a well rentability
constructed brand image 1. Bargaining (+14,2), really 4. Identify opportunities and
in the perception of its Power of present in threats.
customers and consumers Buyers developing
countries, 5. Assess the overall industry
Strong and steady : several attractiveness.
Distributors can propose dairy products to innovations, fast
their customers with their prices growing in 6. Determine how to position
Chinese market your business in relation to the
five forces. 8
Opportunities (from weak
forces and trends in the
business environment):
• Opening of the chinese
market (the chinese 1.
consumption increased the
last decade, especially with
2.
the US-China economic war)
• Wide audience market (for all
ages).
3.
Threats (from strong forces and
trends in the business
environment): 4.
• More restrictions laws on 5.
sterilization and stockage
• Lower subventions income (La PAC)
• Social trends : veganism 6.
Name the industry clearly, its
place and time.
Identify the actors (number
and size) in each force and
group them (into
sub-industries).
Evaluate the strength of each
force, their trends and their
underlying factors.
Identify opportunities and
threats.
Assess the overall industry
attractiveness.
Determine how to position
your business in relation to the
five forces. 9
Low attractiveness

Most forces are strong. The industry is

organized in an oligopoly with few
competitors dominating the market. It
depends too much on consumers and 1. Name the industry clearly, its
governmental criteria. It is becoming place and time.
less attractive due to strong competition
and high risk of new entrants with more 2. Identify the actors (number
resources and innovative products and size) in each force and
derived from converging technologies. group them (into
sub-industries).

3. Evaluate the strength of each

force, their trends and their
underlying factors.

4. Identify opportunities and

threats.

5. Assess the overall industry

attractiveness.

6. Determine how to position

your business in relation to the
five forces. 10
 Innovate
Innovate taking
taking into account
Partnership with a the
other trendsindustry:
trends of the into
Bargain new
big high-quality multi-functionality, home
prices account :
systems, converging
1. Name the industry clearly, its
manufacturer.
- create
technologies, new
computer place and time.
vegan-friendly
based systems and
2. Identify the actors (number
digitalized music.
products
and size) in each force and
group them (into
sub-industries).
Mergers
Strategic alliances. 3. Evaluate the strength of each
Strategic alliances force, their trends and their
underlying factors.

4. Identify opportunities and

threats.
• Positioning in the mind of the
More and through
audiophiles more retailers
the website of the 5. Assess the overall industry
(different prices available
company and digital marketing
attractiveness.
strategies.
for products)
• Convince specialist retailers and 6. Determine how to position
specialized magazines and websites.
your business in relation to the
five forces. 11