Industry analysis

Porter’s 5 forces

1. Competition rivalry – The rivalry in this industry is high since there are many companies
competing to provide best price, taste, quality and other benefits. Retailers are offering
cheaper brands and products due to which we can say that private labels are creating a
threat to Brannigan.
2. Threat of new entrant – Since the market is dominated by large players and have a
substantial market share, the threat of a new entrant is low. The barriers here are that
advertisement and promotional investments will be high and obtaining shelf space will be
difficult.
3. Threat of substitute product – Lot of fast food restaurants are serving food that is quickly
consumed and is tasty. Hence the threat is high. People are getting busy with work and want
to invest lesser time in activities like cooking hence the need for substitute products go up
significantly.
4. Bargaining power of buyers – The rise in the working population boosts the demand for
such quick consumption products or innovative products with new flavours and better taste.
Due to recession customers also bargain for cheaper prices. Hence the bargaining power is
high.
5. Bargaining power of suppliers – This is moderately high since the prices charged by the
suppliers alter basis the inflation rate and they would raise their prices. The quality of raw
materials can also be varied by the suppliers.