5 FORCES ANALYSIS

RIVARLY AMONG EXISTING

COMPETITORS
- By building a sustainable differentiation
- By building scale it will be able to compete more
effectively.
- Collaborating with competitors to increase the
market size rather than just competing for small
market. THREAT OF NEW ENTRY
BARGAINING POWER OF
- By innovating new products and services. New
SUPPLIERS products not only brings new customers to the
fold but also give old customer a reason to buy
- By building efficient supply chain with multiple Nutrilight Food Co.’s products.
suppliers.
- By achieving economies of scale, it is possible to
- By experimenting with product designs using reduce the fixed cost per unit.
different materials so that if the prices go up of
one raw material then company can shift to - Building capacity and investing in research and
another. development New entrants are less likely to
enter a dynamic business when established firms
like Nutrilight Food Co. define the standards on a
regular basis. It greatly narrows the window of
spectacular earnings for new enterprises,
discouraging new entrants into the market.

BARGAINING POWER OF BUYERS THREAT OF SUBSTITUTE

- By establishing a broad consumer base. This will be advantageous in
two ways. It will lower buyers' negotiating power and give a chance PRODUCTS
for the corporation to simplify its sales and production processes.
- By being service oriented rather than just
- By developing new products. Customers frequently seek discounts product oriented.
and offers on existing items, therefore if Nutrilight Food Co.
- Understanding the consumer's basic need
continues to develop new products, it may limit buyers' negotiating
rather than what the customer is purchasing.
power.
- By increasing the switching cost for the
- New products will also reduce the defection of existing customers of
customers.
Nutrilight food Co. to its competitors.