How does Porter’s 5-forces model impact on the milk powder industry and Bellamy’s Organic (Organic milk powder from Aus) ?
Threat of new entrants -> ?
Threat of substitution -> Bellamy’s Organic can’t substitute breast-fed milk, low threat?
Buyer’s bargaining power -> high, due to nature of product. There r other organic formulas out there. Bellamy’s Organic has to lower cost to compete?
Supplier’s bargaining power -> low, suppliers come from Australia, bargaining power depends on market/nature conditions, if supplier increases charges,solution= import from overseas
Extent of rivalry between competitors -> ?
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