question archive Section III Industry Analysis This section aims to present the areas of the Porter’s Five Model of the business
Section III Industry Analysis This section aims to present the areas of the Porter’s Five Model of the business
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Section III Industry Analysis
This section aims to present the areas of the Porter’s Five Model of the business.
Porter’s Five Forces Model
Bargaining power of supplier (Low) Þ Threats of New Entrants (Moderate) Þ Competitive Rivalry (Moderate) Þ Threats of Substitution (High) Þ Bargaining Power of Buyer (Low) Þ
A. Bargaining Power of Buyer: Low
The bargaining Power of Buyer is low due to the fact that the product which is the coconut sugar is a natural sweetener and it is more nutritious than the other sugar, and coconut sugar is affordable for the budget of the customer. Hence, a lot of customer will have an interest to buy the coconut sugar.
B. Bargaining Power of Supplier: Low
The bargaining Power of Supplier is low because the coconut that will use is also near to selected area. When the time comes that it is lack of supply in the selected location which is in Bolinao, Pangasinan. In Anda, which is also the main sources of coconut in Pangasinan will be the second supplier for back-up supplies of coconut.
C. Threat of New Substitute: High
The threat of substitution is high because of the popular and well-known sugar extracted from sugar cane. Hence, this makes the Coconut sugar an easily replaceable product. However, the coco-sugar have to be highly innovated by the team on a continuous basis in order to keep hold of masses' interest. In addition to this, the product should have showcased the great improvements to not lose the trend that is why as an alternative, the sugar extracted from coconut is proposed as it contains lots of benefits like low of glycemic index food, treatment for anxiety, depression, etc.
D. Threat of New Entrance: Moderate
The threat of new Entrants is moderate because the coco-sugar will be the first business to be build up in Bolinao, Pangasinan. The concept of the business is hard to copy by other establishments as they are too focus on the sugar extracted from sugar cane. But given the fact that laws and regulations regarding establishment of food business is low, new businesses can enter freely in the market as they were backed up by great and new to introduce products and capital.
E. Competitive Rivalry: Moderate
The competitive Rivalry is moderate by the reason of it has just a few manufacturing of coconut sugar in the selected location of the business though it is the customer preference or choices where to buy a sugar.
