This document provides a SWOT analysis and Porter's Five Forces analysis for the consumer non-durables (FMCG) sector in India. It identifies strengths such as established distribution networks and well-known brands, as well as weaknesses like low investment in research. Opportunities include India's large population and rising incomes, while threats include tax structure changes and slowdowns in rural demand. Porter's Five Forces analysis examines factors like the bargaining power of suppliers and buyers and competitive rivalry in the industry.
This document provides a SWOT analysis and Porter's Five Forces analysis for the consumer non-durables (FMCG) sector in India. It identifies strengths such as established distribution networks and well-known brands, as well as weaknesses like low investment in research. Opportunities include India's large population and rising incomes, while threats include tax structure changes and slowdowns in rural demand. Porter's Five Forces analysis examines factors like the bargaining power of suppliers and buyers and competitive rivalry in the industry.
This document provides a SWOT analysis and Porter's Five Forces analysis for the consumer non-durables (FMCG) sector in India. It identifies strengths such as established distribution networks and well-known brands, as well as weaknesses like low investment in research. Opportunities include India's large population and rising incomes, while threats include tax structure changes and slowdowns in rural demand. Porter's Five Forces analysis examines factors like the bargaining power of suppliers and buyers and competitive rivalry in the industry.
This document provides a SWOT analysis and Porter's Five Forces analysis for the consumer non-durables (FMCG) sector in India. It identifies strengths such as established distribution networks and well-known brands, as well as weaknesses like low investment in research. Opportunities include India's large population and rising incomes, while threats include tax structure changes and slowdowns in rural demand. Porter's Five Forces analysis examines factors like the bargaining power of suppliers and buyers and competitive rivalry in the industry.
Low operational costs Low scope of investing in Research and
Presence of established distribution networks in technology and achieving economies of scale. both urban and rural areas Low levels of exports. Presence of well-known brands in FMCG sector Many counterfeit products in the markets Deep roots in local sector and great specially in rural and semi urban markets. understanding of consumer needs
SWOT ANALYSIS
Opportunities Threats
Large domestic market with over 1.3 billion
people. removal of import restrictions resulting in Good export potential. replacement of domestic brands Untapped large rural market. slowdown in rural demand Rising income levels and increase in purchasing tax structure power. high consumer goods spending
Porters Five Force Model
Bargaining Power of Suppliers (Low)
Big FMCG companies are able to dictate the prices through local sourcing from a fragmented group of key commodity suppliers
Bargaining Power of Buyers (High)
Low switching cost induces the customers’ product shift Influence of marketing strategies Availability of same or similar alternatives
Threats of substitutes (High)
Presence of multiple brands Narrow product differentiation under many brands Price war
Threats of New enterants (Medium)
Huge investments in setting up distribution network and promoting brands Spending on advertisements is aggressive Competitive rivalry (High) Private label brands by retailers are priced at a discount to mainframe brands limits competition for the weak brands Highly fragmented industry as more MNCs are entering