Reference no: EM131052864

Technological (2)

1. Cookie, cracker and pasta producers all have switched to an automated process of mixing and baking. Due to this technology switch, the process to proof dough becomes ten times faster.

2. Computerized ordering systems have greatly improvised the ordering process and made the process of attaining products much more customer friendly, while saving money as well.

Environmental (2)

1. Droughts in areas where ingredients are produced significantly have an impact on the market where these ingredients are used. The impact surges well beyond the initial price, even trickling down to the consumer price.

2. Chemicals are often used to grow the ingredients for most food, when the concentration is too high, it can affect the substance. Regulations are placed to protect the consumer from what may happen when consumed.

Legal (2)

1. If a company claims to have gluten free foods, or healthier choices than the competition, cannot show that is true, they will face legal issues. These legal issues will affect the businesses reputation.

2. Canada and Mexico have been large recipients of exports due to their involvement in NAFTA. Larger exports generate more revenue for businesses and increase demand for those such products.

Rivalry Among Competing Sellers (2)

1. Many producers of cookies, crackers, and/or pasta have expanded their target markets to include more shops than grocery stores. Those who expanded saw increases in profits from stands, discount stores, and areas with high foot traffic. (Strong, Favorable)

2. When competitors are bought out by other large players in the market, the company acquires those assets of the previous business. This can be an issue to the competitors as location of assets could mean greater efficiency. (Unfavorable, Strong)

Threat of Entry (2)

1. Many existing companies in the market exist in more than one market for different products. A small/large company would face issues regarding entering the market with many goods in the market already. (Favorable, Strong)

2. Many larger, more established companies control the market, making the market nearly impossible to enter and be successful. This is beneficial to companies as they know that the market is theirs to control. (Favorable, Moderate)

Substitute Products (2)

1. External competition in the snacking industry has some consumers chowing on trail mix or fruits and vegetables instead of cookies and crackers. Resulting in a decrease in the demand for cookies and crackers. (Strong, Unfavorable)

2. A large substitute for crackers is chips. The chip industry has been through research, developing a newer healthier product, Baked Lays. (Fierce, Unfavorable)

Bargaining Power of Suppliers (2)

1. Healthier option, good reputation, companies have a higher consumer loyalty. The consumer loyalty drives the demand of this companies products higher and the demand of their competitors lower. (Favorable, Moderate)

2. Developing products that are both healthy and filling as a snack impacts the demand for such products. These types of products have a higher demand, which results in higher revenues. (Favorable, Strong)

Bargaining Power of Buyers (2)

1. Buyers have an advantage in the purchasing of goods when the rival substitute goods demand increases. As the demand for the substitute good increases, the price will as well. This may lead the customers back to the good as it is now the cheaper alternative. (Unfavorable, Strong)

2. One company is selling their product lower than other companies, buyers have the option of choosing the lowest price. This forces producers to either lower their price or lose out on customers to competitors. (Unfavorable, Strong)