Porters 5 force

Threat of substitute products: The threat of substitute is low. Currently there are very few
competitors in this industry, making it difficult for the customers to switch from one company to the
other. The companies can charge a premium price from customers who are focused on of the food.
As it is difficult for the customers to shift from one brand to another, substitutes exert a weak
pressure.

Bargaining power of Suppliers: The bargaining power of suppliers is moderate in this industry. The
reason for this is that the suppliers in this industry mostly provide raw materials. The supplier chosen
will be according to the price the company sells its product at. Thus, in this industry most of the
suppliers would have a weak force. The size of market is also a determining factor when it comes to
the bargaining power of suppliers. Because at the initial stage we our market size would be small,
suppliers would have more power because of the limited order they can generate

Bargaining Power of Customers: the bargaining power of customers is low because there are very
few competitors in this market. To avail the service, a price must be paid for it. According to Porter,
value generation is more important than the price. Thus, a high-quality service with lesser price
should be considered so that this industry could gain margins through a value-based competition.
Hence, the goal of this industry is to create enough value and establish an economically stable
environment.