Enterprise management- Bright Australian Company
Institution
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Bright Australian company- Porters Five Analysis
Bright food holding company is not the only distribution and manufacturing firm in Australia. Its four primary areas of operation, which include retail, food service, industrial supplies, and export services, are often received with massive industry rivalry. In this case, porter’s five forces of market evaluation play an integral role as the company fights to stay afloat. Porter’s five forces are strategic decision-making framework that analyses not only the company’s current competition but also the future market dynamics (Pringle & Huisman 2011, p. 63). Managers in the Bright company use this tool to build sustainable competitive advantage in the food industry strategically. Besides, it can be used to analyze macro-environment market forces.
Bargaining power of buyers– this is a market analysis in which buyers have high bargaining power with different foodstuff supply options (Pringle & Huisman 2011, p. 65). Bright company operation in retail services has many other players like Walmart supermarket. Therefore buyers would have high bargaining power for products and services being offered since the industry has more sellers of similar products.
The bargaining power of sellers– companies in Australia are coupled with many industry players offering almost the same services and products. The leading suppliers range from retail, food services, and industrial and export services. Therefore, suppliers’ bargaining power is relatively low due to the lack of differentiation in the products offered in the market. Bright food holding company invests in innovation and providing unique services that have a competitive edge over its competitors.
The competitive rivalry among competitors– bright firm faces stiff competition from big brands like Carrefour and Walmart. These competitors provided a variety of products and services. Therefore the high number of these companies in Australia makes it difficult for bright companies to penetrate the market.
The threats of substitute products- Bright’s main entities like Manassen foods Australia and sunbeam foods which have approximately 80 different brands experience massive new rivalry from Alibaba retailers(Aliouche, Schlentrich & Frazer 2012, p.92).
. The Chinese based firm offer substitute products for bread like burger and sandwich. Therefore the firm’s products may not be sold in volumes due to this new entourage in the industry.
The threats of new entrants– new entrants in the bright company bring innovation, different ways of doing things and exert pressure on the company’s management team. The firm’s mission to expand internationally requires a concerted effort from the top management, substantial financial resources, and excellent infrastructure, among other elements. Low threats of new entrants for Bright food companies, such as good government policies and international trade ties, would be advantageous to the company’s expansion strategy program (Aliouche, Schlentrich & Frazer 2012, p.80).
The success story of the bright food holdings Ltd is anchored on the unique and brand products the firm offers to its customers. In a bid to remain competitive in the market, the firm boasts of providing several distributing and manufacturing companies, contrary to most of its competitors that only offer distribution services. Berry & Haile (2014) asserts that core competencies lie in building a sustainable differentiation of its products while keen on understanding the core needs of customers as opposed to what they are buying. In product differentiation, bright food Ltd supplies its customers in restaurants and hotels with unique pasta, oils, cheeses, meats, fish, and chocolates. This enables it to remain competitive in the food market distribution.
On the other hand, the core customer needs, like the provision of different brands of products, is to act as the company’s customer base drive. For example, the company exports food and food ingredients like citrus fruits, dried fruits, and daily products not only in Australia but across its branches worldwide (Fernie, Sparks & McKinnon, 2010). The strategy helps it compete favorably in the export sector it operates. Generally, the two core competencies strategies are sustainable and have a competitive advantage over other players in the food and distribution industry.
References
Aliouche, E. H., Schlentrich, U. A., & Frazer, L. (2012). Internationalization modeling: A comparative analysis of American and Australian franchise firms. Journal of marketing channels, 19(1), 77-97.
Berry, S. T., & Haile, P. A. (2014). Identification in differentiated product markets using market-level data. Econometrica, 82(5), 1749-1797.
Fernie, J., Sparks, L., & McKinnon, A. C. (2010). Retail logistics in the UK: past, present, and future. International Journal of Retail & Distribution Management.
Pringle, J., & Huisman, J. (2011). Understanding Universities in Ontario, Canada: An Industry Analysis Using Porter’s Five Forces Framework. Canadian Journal of Higher Education, 41(3), 36-58.