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Porter’s Five Forces Model Essay

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Below is an essay on "Porter’s Five Forces Model" from Anti Essays, your source for research papers, essays, and term paper examples.

                                  
Q1.  Identify any organization of your choice from your country and use Porter’s Five Forces Model to identify and analyze the sources of competition in the sector.
Fruit Swirl Yogurt Ltd, founded in 2010, is a small successful yogurt company with four outlets around the island of St. Lucia. They make up a big part of the industry since they focused on a niche market of healthy, tasty yogurt. They locally produce a healthy yet tasty product of various types of yogurts with an assortment of fresh fruits, oatmeal, flaxseeds and many other healthy product options. Fruit Swirl Yogurt Ltd allows customers to come into the shop and choose from three cup sizes, fifteen yogurt flavors and seventy toppings. Customers can also find and purchase these delicious yogurt cups prepackaged at their local supermarket.  
The manager of Fruit Swirl Yogurt Ltd conducts a porter’s five force study to determine how competitive and attractive Fruit Swirl Yogurt is. The forces all work together to gain an understanding of where the company stand in the industry.

Industry Competitors
Fruit Swirl Yogurt Ltd’s threat of rivalry is high, they are competing with all the local, regional and international businesses which make similar products and also own similar local shops.
Their direct competitors are other local yogurt shops and similar yogurt products in supermarkets. On the island, there are only two other yogurt shops, Competition is very intense because of the low differentiation of products.

Threat of New Entrants
The threat of new entrants in the yogurt industry is high as there are little barriers to entry. Capital requirements for the yogurt industry include manageable research and planning cost and low to medium initial investments of a facility as well as equipment. Equipment includes a cold storage room, delivery trucks, computers and a printer. This industry has economies of scale and low entry requirements from the government...

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