d in the industry is that many new products will be constantly introduced into the market at a much faster rate than before. Industrial Competitive Forces Analysis (Peter’s 5 Forces) Intensity of Rivalry The intensity of rivalry is high in the Fast Moving Consumer Product industry. This is due to several factors. First of all, there are many players in the industry. Apart from the major players, there are many local and regional competitors, which implement different strategies. Some brands like Zaitun, which uses a religious approach to selling its product. Zaitun’s strategy proved successful in Islamic countries is no longer experiencing rapid growth. In fact, many developed country’s market is saturated. As such competition is fierce, as they fight for the same slice of cake. Rivalry is further intensified by the fact that consumers can switch between brands easily and incurring virtually zero cost. This fact causes companies to constantly fight over the same consumers. Firms use many different strategies to obtain competitive advantage ranging from product innovations to low prices. The strategy used would depend on the market position of the firm. Threat of Entry The threat of Entry into the Fast Moving Consumer Product industry is quite high as new entrants would require a considerable amount of capital in order to set up a production plant and other administration cost. More over, the existing firms, especially the major players, which are multidomestic companies, have considerable cost advantage due to economies of scale. As such the new entrants would have a smaller profit margin. In addition, in order to produce good quality products, firms have to undertake Research & Development efforts. These factors make the industry less attractive to new entrants. However, the industry does not require high levels of technical know how in its production process and it is not subjected to many government regulations. Thi...
