2. Threat of New Entrants
New entrants would always be a threat for the company.
Nestle has a strong name in the market.
Nestle has been the leader of market so it is big challenge
for the new entrants.
Many companies entered in food industry but few are
survive.
Threat of New Entrants is low.
3. Threat of Substitute Goods
High competition is always seriously threat.
Nestle deal in those product which very common and daily use.
Initiatives would make it easier for Nestle to go beyond the
substitutes.
Threat of substitute product is high.
4. Bargaining power of suppliers
Dairy and agricultural raw materials.
The company maintains high
standards in seeking quality
suppliers.
Nestle is known for good relationship
between the company and its
suppliers.
5. Bargaining power of customers
The customers in the food processing
industry have a lot of bargaining power.
Nestle differentiate itself from other
companies product on its good quality.
Society has in progress of becoming more
health conscious.
6. Competitive Rivalry within the Industry
Nestle has a very strong position in the food processing industry
DANONE and Kraft Foods are the main rivals of Nestle.
Nestle has always led in the industry because of its top quality
products and constant innovations