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    Porters 5 Forces

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    Ernest Sendeza
    The document discusses three forces in the cooking oil industry in Malawi: 1) There is a lot of competition which makes it difficult for new companies to enter the market without offering better deals. 2) There are not strong barriers to entry, so it is easy for new businesses to join the industry by providing improved quality, services, or lower prices. 3) Supplier bargaining power is strong because there are few sunflower suppliers in Malawi, limiting companies' ability to switch to alternative suppliers and forcing them to accept suppliers' price and policy decisions.

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    Porters 5 Forces

    Uploaded by

    Ernest Sendeza
    18 views1 page
    The document discusses three forces in the cooking oil industry in Malawi: 1) There is a lot of competition which makes it difficult for new companies to enter the market without offering better deals. 2) There are not strong barriers to entry, so it is easy for new businesses to join the industry by providing improved quality, services, or lower prices. 3) Supplier bargaining power is strong because there are few sunflower suppliers in Malawi, limiting companies' ability to switch to alternative suppliers and forcing them to accept suppliers' price and policy decisions.

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    The document discusses three forces in the cooking oil industry in Malawi: 1) There is a lot of competition which makes it difficult for new companies to enter the market without offering better deals. 2) There are not strong barriers to entry, so it is easy for new businesses to join the industry by providing improved quality, services, or lower prices. 3) Supplier bargaining power is strong because there are few sunflower suppliers in Malawi, limiting companies' ability to switch to alternative suppliers and forcing them to accept suppliers' price and policy decisions.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    18 views1 page

    Porters 5 Forces

    Uploaded by

    Ernest Sendeza
    The document discusses three forces in the cooking oil industry in Malawi: 1) There is a lot of competition which makes it difficult for new companies to enter the market without offering better deals. 2) There are not strong barriers to entry, so it is easy for new businesses to join the industry by providing improved quality, services, or lower prices. 3) Supplier bargaining power is strong because there are few sunflower suppliers in Malawi, limiting companies' ability to switch to alternative suppliers and forcing them to accept suppliers' price and policy decisions.

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    © All Rights Reserved
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    1.

    Competition in the industry: this force talks about the number of competitors in a market
    or industry. The cooking oil industry has a lot of competition and therefore has the power
    to undercut a new company that may want to enter the market. A company must come
    with better deals to penetrate the market
    2. New entrants: this industry does not have strong barriers to entry, therefore it’d be easy
    for a new business to enter. New entrants can weaken established companies by having
    improved quality and services and even lower prices
    3. Bargaining power of suppliers: here the uniqueness of a supplier’s commodity and how
    much it costs is a factor. In malawi sun flower suppliers are less and that means
    companies can’t really switch to rivalry suppliers but to stomach every new decision that
    these suppliers make.

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