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buy custom Strategic Management essay Question 1 In the world of business, industries are a group of competitors that manufacture comparable products and services. Furthermore, purposely various industries produce goods that share the same basis of competitive advantage. The Porters five forces are uncomplicated means that enable to plan and assess a business environment. They also help to evaluate the impact of the firms existing competitive location on possible revenues. A competitive force in the industry determines the success and the market share for rival firms, as they influence prices and expenses incurred (Warner, 2010). The Porters five forces model includes the following: the bargaining power of buyers, threat of new entrants, rivalry among the existing firms, the bargaining power of suppliers, and the threat of substitute products. Rivalry among competing sellers shows a big deal of aggressive force created by the competitive seller for a superior market place and competitive benefit. Furthermore, pressure is coming from the risk of the entrance of new competitors. A market research suggests that there are many competing businesses in the snack food manufacturing industry. Some businesspersons see this as a strong growth and expect the business to keep growing, because they believe that it leads to innovations and rapid development. In addition, other studies show that clients are becoming more anxious about healthy food and are looking for better snacks. It has brought about extremely big competition in relation to introducing new products that have little calories (Warner, 2010).Apparently, rivalry in the industry is growing stronger, and the snack market is comparatively expanding. Another factor that creates pressure in the snack food business is the variety of clients and buyers. For instance, diverse preferences of buyers generate secondary competition in the industry. The Pepsi and Coca-Cola Companies implement diverse principles in advertising and approaching their clients, however, they are both producing similar drinks. Nevertheless, they left the healthy snack industy to other parties, such as Kraft Foods (Warner, 2010). Even though there are numerous alternatives for clients, the bargaining power is reasonable here. Particularly, if there is bargaining and the supplier-seller partnership, suppliers of industry businesses force upon snack food producers (Warner, 2010). For instance, suppliers of raw materials together with important ingredients such as wheat, oil and sugar increase prices alongside. Thus, food staff prices will be affected. Therefore, the effect of this force is powerful in the industry. The existence of other businesses in the separate industry may be a risk for snack food manufacturers. Businesses such as food shops and sandwiches are not believed to be snack-manufacturing ones. Moreover, other local businesses and supermarkets may have extraordinary bids for their shop items that may compete with snack food producers. The impact of such businesses and the threat of substitutes is rather a bit powerful (Warner, 2010). For example, a snack producer may be selling his or her product at $ 5, while in the supermarket there are other products sold at $ 4. The difference can easily convince customers to buy products from the supermarket to save that $ 1. It gives supermarkets a competitive advantage; hence, the food snack business will be limited to produce few snacks. In the end, it affects general sales and profitability of the business. Question 2 There are several driving forces affecting the snack food industry. Individuals are encouraged to find healthier alternatives to snack food. Numerous popular snacks, such as snack mixes, chips, and candy, are found to have many calories and excess sugar content. Those foods that are suitable for the human body are healthy options and have a lot of nutrients, minerals, and vitamins that fuel it. Popcorn, protein-packed snacks, and vegetables are a few examples that are always a healthier replacement. Therefore, such substitutes are affecting the promotion of snack foods in the marketplace. The increasing sales of private label snacks are the second factor that can concern snack food prroducers. It is mainly influenced by the consumers preference. They are always looking for the best value when purchasing snacks (Stair Reynolds, 2011).Clients do in fact show a resemblance for their preferred brands. It means that as the snack market is maturing, product quality is always a priority. It is not necessarily about the price of snacks but the top quality, which can promote the business. Rising prices of raw materials, which include oats, oil and sugar, forms the third factor. The increase of prices of such ingredients affects the rate of production. The business is forced to cut on the cost of raw materials by purchasing a few ingredients or more raw materials and charging high prices to retain back the expenses. It will affect the consumers budget and will provide an option of a substitute. Hence, the business will incur low sales and minimum profits. The fourth factor mainly focuses on innovations in the industry. A big impact is made on the sales and market shares since clients are usually rational and are always attracted to attempt new flavors and trends (Stair Reynolds, 2011).Innovations play an important role in increasing the market share of several snacks. In any business, when a firm introduces a new product or a snack shop in the market, consumers will always buy the products, especially if they are lured, and it really satisfies their needs. Finally, in this industry, selling innovations acts as a guiding task for snack producers. Clearly, they need to do a thorough research on the market and their clients levels so as to innovate practical marketing campaigns. By using inventive and exclusive marketing proficiencies, snack food providers have a huge potential to expand their market share and increase the number of clients. This research gives snack food producers important strategies to produce unique snacks that satisfy consumers and approach them in the right way. Therefore, snack food should be diverse and cover all the needs of every customer who either prefers to consume faster and snack food or those who care about ingredients of their daily snacks. Buy custom Strategic Management essay