Porter’s five assignment contribution PDF

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Porter’s five assignment contribution...

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The Porter’s 5-force model is a an effective tool to conduct an analysis of the company’s competitive environment and how competitors, customers and suppliers have an impact on the operations of Brandless as an organisation. Customers in this consumer packaged goods industry have bargaining power. As such, customers’ buying process helps companies determine and decode the needs of the target market. In this case, Brandless has anticipated the changes in customer needs. With accordance to consumer trends, the case notes that “millennials value price as their number one buying considerations”. This conveys how investigating the mentality of youthful individuals who desire affordable products allow Brandless to be profitable and influential in this market. As Brandless promises to “offer the best stuff at the fairest price”, it will attract the millennials and from this as it can sustain customer’s attraction as it suits their demand and buying process of searching for affordable products. Moreover, it is essential for Brandless to monitor the threat of new entrants and established competitors and the threat of substitute products. Here, in this case, due to the slow growth in consumer packaged goods industry, Brandless’ strategy of keeping costs low through its packaging department and selling at the fairest prices has allowed the organisation to be sustainable. Meanwhile, the large consumer packaged goods firms that are “paying to "retailers to stock and sell their products” have to continue selling their products at a high cost to maintain profit margins is a growing weakness that will lead to their demise as behaviour trends of consumers transition. Having said that, “a significant level of brand shifting was happening, with [the general target market of] consumers leaving top brands for private labels”. This is beneficial to Brandless, as the organisation’s strength is endorsing more about “healthy and value conscious products” at the fairest prices rather than the perception of the brand....