In: Operations Management
Describe the Rivalry Among Competing Sellers in the Organic Packaged Food Industry.
Include:
Who are the rivals?
Rate the force as Strong, Medium, or Weak and explain why you gave it that rating.
answer-
Rivalry Among Competing Sellers in the Organic Packaged Food Industry-
The rivalry amaong competing sellers in the organic packaged food industry is high because of the presence of many competing sellers present in the industry at big as well as local level. The rivals that present in this industry are Wholefoods market, Trader joes's , Sprouts Farmers Market., The Fresh Market,Raley's and local farmers market with small farmers selling fresh and organic foods to customers. The rivalry gets intense when there are so many competiting sellers present because they divide the market share and use their resources in marketing, promotion and making strategies to beat down other sellers so that they can attract more customers.
This rivalry is high because Customer loyalty is not high and The switching cost is low so seller which offers best quality food with best price then customers can switch easily from one store to another.for example- if whole market food sell high priced orgnic packaged food say and same item with same quality is offered by another farmer's store at low price then customer can easily switch to its competitor.