Question

Looking at Dean Foods, what problems have they been facing, and what solutions can you recommend they do based off of Porter's 5 Forces analysis?

Answer 1

Dean foods is one of the largest dairy food manufacturers in US. The main problems they are facing is that due to competition from retailers in milk supply lead to a fall in their revenue by huge %.

The main reasons are due to more firms enetering the market and the existing firm competitions and the sales of products are the core reasons for the fall in their income.

As from the Porters Five force analysis here the Dean foods should try these recommendations

1) They should try to try to evaluate the how much effect the new entrants may post to them as they are one of largest manufactures who has market and their own consumers.

2) They should keep a check relative price and the buyer prosperity with the substitute products

3) The cost based analysis and also the buyers willingness to buy their products and the substitute products

4) Demand for their products and the substitute products with price and supply should also be considered

5)bargaining power of both consumers and suppliers are also considered

By doing all this analysis they are able to understand what are the areas they should have checks and balances to again regain their growth which will help them to create revenue.