Porters five forces model on fmcg

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Transcript of Porters five forces model on fmcg

Page 1: Porters five forces model on fmcg

Bijoy Singha

Bikram Singha Roy

Rajib Chowdhury Rameez Ahmed

Biswarup Mondal

PresentedBy

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High volume business - Sold in large quantities

Sold at relatively low cost

Fast Moving Consumers Goods also known as Consumer Packaged Goods

(CPG)

Extensive

distribution

networks

Less Shelf Life- Sold quickly

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FMCG Industry

Personal Care

Food & Beverag

es

Fabric Wash & Household

Cleaner

Oral Care, Hair Care, Skin Care, Cosmetics etc.

Health Beverages, Staples, Bakery, Tea, Coffee, Soft

Drinks etc.

Major Segments In FMCG Sector

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Buyers

Suppliers

Potential Entrants

Substitutes

Porter's Five

Forces Model

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Rivalry Among Existing Players

Rivalry Among Existing Players

Rivalry among players are very high in FMCGPrice competitionAdvertisement & Promotional StuffDistributionNew productStorageExit Barriers are lowWarranty & Guarantee

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Potential Entrants

POTENTIAL ENTRANTS

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POTENTIAL ENTRANTS

Barriers Government Rules & Regulations

Government Service And Tax

Food Security Bill

FDI

Licensing Rules

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Strong Distribution Network RequiredHigh Capital RequirementAlready Existing Strong Brand Names

Raw Material AvailabilityLow Labor Cost

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Buyers

Buyers

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Bargaining power is low

Concentration

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Suppliers

SUPPLIERS

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Bargaining power is low

Switching cost

Relative supply

Importance of input

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Substitutes

substitutes

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substitutes

Substitutes Utility Switching Cost

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Utility

Threat-More

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Switching Cost

Threat-Less

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Conclusion

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