 Risk of entry by potential competitors; Because of the stability of their market

position, Marico faces little threat of new entrants. They also have a good control over

the market. Being an old company in this sector, they have an absolute cost advantage

over new entrants since they have had more time to gather knowledge and experience as

well as obtain cheaper sources of funding. Another thing is that, Marico have lower

switching costs since they have developed their brand and can offer lower pricing due to

economies of scale. As it is hard to achieve substantial scale efficiencies, new entrants

could not compete with our established companies on pricing. So we can say that, the risk

of new competitors is low.

 Rivalry among established companies: there is no doubt many rivals of Marico out

there. As the key product of marico is coconut oil, many companies can offer their own

version of coconut oil. Coconut oil being a widely available product, it is not hard to

produce. And there are many companies out there doing exactly that, like, jui coconut

hair oil from square, vatika hair oil from dabur etc. so the rivalry is definitely present.

The one advantage marico has is that they have maintained a good quality with their

products. And they were the first movers. But the risk from their rivals is high and is

enough to lessen their profit.

 Bargaining power of suppliers: Marico can rely on different vendors for the supply of

raw materials, as the products they make needs raw materials that are widely available

and can be collected from more than one vendor. This gives them better power over their

suppliers. They mostly focus on importing raw materials from more than one country.

The materials they import goes through tight monitoring. So that the quality is ensured.

To cut down cost even more they sometimes produce high-quality raw materials in their
 own plants. And reduces the troubles related with import.

 Bargaining Power of buyers: one of the many risks that is not always in the control of a

company is the bargaining power of buyers. If there are several comparable options, the

consumer has more power in bargaining and they may choose a different brand. The

buyers tend to do that in most cases. And the company cannot do anything about it since

it is the free will of the customer. And there are plenty of substitute for the products made

by marico. So for a buyer finding that substitute is not difficult. In this way the buyer has

a lot of power over the company. The company must work hard to hold down the buyer.

But if they still fail to do it, then the buyer can badly impact the profit of Marico in the

long run.

 The threats of substitutes: we can find so many substitutes for Marico products. And

the price of those substitutes is very similar most of the time. So it is a big challenge for

Marico to fight with other companies making substitutes and stay in the market. Being an

experienced company Marico can offer good quality products in a low price. But other

rival companies are catching up too. And having a loyal customer base is not enough.

Because they can lose it , If substitutes are good enough. So Marico can face loses due to

switching cost. They have to find different ways through R&D, as well as feedbacks and

surveys to figure out how to deal with this problem and stay ahead in the market as, The

availability of substitutes is high in the FMCG industry .