Threat of substitutes (1.

6/5)
•
Michael Porter’s •
High availability of close substitutes.--
Low consumer switching cost.-
•
Five Forces Model •
Relative price & performance of substitutes.=
Profitability of substitutes.-

Bargaining power of suppliers

Barriers to entry (3.4/5)
•
Rivalry among competitors (3.8/5) (2.8/5)
Attractive economies of scale.+
• Number of market players.++ • Number of suppliers.+
• Product differentiation via shape, size,
• High industry growth.+ • Availability of substitute.+
color, quantity etc.=
• Low switching cost from one company to • Supplier's threat of forward
• High brand identity.=
another.- integration.- -
• High capital investment.-
• Moderate product differentiation.= • Industry’s threat of backward
• Huge availability of distribution channels.+
• High intensity of competitive rivalry.++ integration.-
+
• Industry’s dependency on suppliers.=

Power of buyers (3.2/5)

• High no. of buyers.=
• Buyer’s switching cost and aggressive
marketing strategies.+
• Availability of substitutes for the industry’s
Colour codes products.++
<2.5 • Backward integration of buyer.-
2.5-3.5 • Bulk purchase of products.- Symbols and Weightage:
3.5> (++) : 5 | (+) : 4 | (=) : 3 | (-) : 2 | (--) : 1
 Overall Assessment

• High volume & Low margin industry.

• High competition and effective substitution
effect.
• Highly admirable sector in Indian economy.
FMCG Industry
• FDI and other future trends

Overall Assessment
6
5
5
4.5
3.8
4 4
3.4
3.2
3.5 3
2.8
3
2
2.5

2 1.6 1

1.5 0
Threat of new Rivalry among Power of Power of Threat of Overall
1
entrants competitores substitutes Attractiveness
0.5 buyers suppliers
FMCG Industry Overall
0 assessment
Rivalry Among Threat of Barriers to Entry Bargaining power Power of Buyers
Competitiors Substitutes of suppliers