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Threat of new entrants: Low-moderate

Threats of new entrants for the companies Nestle, Kind, Kraft are low as there are many well established
companies within this market. To enter in the business the new entrants need high capital and
establishing distribution channels also takes a lot of time. But out of three the Kind has higher threat of
new entrants as it is unlikely that new rand can dent the Nestle’s market share in the market

Threat of substitutes: High

The threat of the substitutes are high for all the three companies Nestle, kind, kraft . The substitutes are
easily available in the market and even can be made at home such as smoothies, fresh juices, oats which
can easily substitute their product’s benefits. Also, there are many products in the market which tastes
similar.

Buyer power: high

Bargaining power of customer in this industry is high as there is a high level of competition. A customer
can switch from one brand to another without any switching cost and don’t need any information to do
so .In case of Nestle, Bargaining power of customer is less as compared to Kind and kraft , as they are
bigger brand and enjoy customer loyalty .

Supplier power:

The supplier power is low in the industry and has large number of suppliers but when we compare
between all the three companies it can varies from low to moderate. The nestle is the biggest of three
and the kraft Heinz is the fifth biggest in the world so the supplier power is low in both the cases but
when it comes to kind the supplier enjoys more bargaining power than other two companies.

Competitive rivalry:

The competitive rivalry is high as the industry has intense competition. The industry has several large
players fighting to retain the market share. All of these firms spent a huge amount on marketing and
advertisements.

Industry Capacity: the nestle has the highest industry capacity amongst all the three whereas kind
snacks has has lowest. Kraft Heinz is the fifth largest company in the world in terms of market share s it
can be said that it also has the high industry capacity.

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