Porter’s Five Forces Analysis of Beyond Meat 

Beyond Meat is a plant-based meat substitute Los Angeles company. Ethan Brown founded the company in 2009. Today, we’ll discuss Porter’s five forces analysis of Beyond Meat; bargaining power of suppliers and buyers; threat of new entrants and substitutes; and intense rivalry as competitive forces in strategic management.

Porter’s five forces analysis of Beyond Meat would analyze the bargaining power of suppliers and buyers; the threat of new entrants and substitutes; and intense rivalry as competitive forces in strategic management. Here’s Beyond Meat Porter’s five forces analysis of plant-based meat substitute business as follows;

Porter’s Five Forces Analysis of Beyond Meat

Let’s discuss Porter’s five forces analysis of Beyond Meat as competitive forces in strategic management and they’re as follows;

Bargaining Power of Suppliers in Beyond Meat

The bargaining of suppliers is Moderately higher in the plant-based meat substitute business as competitive forces in strategic management. Some of the main factors impacting the bargaining power of suppliers in the Beyond Meat Porter’s 5 forces analysis of plant-based meat substitute business are as follows;

I-Unique Ingredients

The production of plant-based meat substitute food is heavily reliant on the unique ingredients. In fact, it requires the high-level processing of plant-based food items. Some of the main ingredients are as follows;

• Red beet juice
• Pomegranate powder
• Sunflower lecithin
• Apple starch
• Potato starch
• Coconut oil
• Canola oil
• Pea protein isolates
• Rice protein
• Mung bean protein

The abovementioned ingredients in the raw form are easily available at a lower cost. But their extracts require a high level of processing and it amplifies the production cost. However, the suppliers of extracts and unique ingredients are lower and they have a significant bargaining power.

II-High Switching Cost

Since the suppliers of unique ingredients are lower and they are supplying unique ingredients and food extracts to multiple companies. Beyond Meat has to comply with the price and other terms and conditions requirements of the suppliers; because the switching cost is very high.

Bargaining Power of Buyers in Beyond Meat

The bargaining of Buyers is higher in the plant-based meat substitute business as a competitive forces in strategic management. Some of the main factors impacting the bargaining power of suppliers in the Beyond Meat five forces analysis of the plant-based meat substitute business are as follows;

I-Substitute Options

Customers have multiple options for plant-based meat food items of different brands. They offer almost the same taste and price. They could easily switch from the Beyond Meat brand to another without incurring any cost. It gives them significant bargaining power.

II-Information Access

Internet and digital technology have made the access to the information very convenient. It allows them to search the easily find the plant-based meat substitute offering companies in the area; their prices, and opening time. However, it further gives them bargaining power.

Threat of New Entrants in Beyond Meat

The threat of new entrants is low in plant-based meat substitute businesses as competitive forces in strategic management. Some of the main factors impacting the threat of new entrants in the Beyond Meat 5 forces analysis of plant-based meat substitute business are as follows;

I-Investment & Regulations

The production of plant-based meat substitute food items at the mass scale requires a high level of capital investment in equipment and gathering supplies. Along with capital investment, they need to comply with the food and safety regulations to make sure that their products are safe and healthy to eat.

Beyond Meat has invested a significant amount of capital resources for the development of plant-based meat substitute food at the mass scale; and earned a loyal database of customers. On the other hand, new firms have limited availability of resources.

II-Scale and R&D

Along with heavy investment and regulation expenses, Beyond Meat invests a significant amount of capital resources in research and development. The objective is to improve the taste and find alternative supplies and ingredients for the production of plant-based meat substitutes.

Threat of Substitutes to Beyond Meat

The threat of substitute products and brands is higher in the plant-based meat substitute business as competitive forces in strategic management. Some of the main factors impacting the threat of new substitutes in the Beyond Meat five forces analysis of plant-based meat substitute business are as follows;

I-Traditional Meat Food

Ordinary customers have multiple substitute options available to them in the form of traditional meat food dishes of various brands. They are almost at the same price or lower, and the customers could easily switch to them without incurring any cost.

II-Alternative Plant-based Meat Brands

The customers of plant-based meat substitute food items are either vegetarian, environmental or animal activists, or have cardiac health issues. There are multiple brands and companies offering plant-based meat substitute food to customers with the same taste and at the market competitive price. However, these factors make the substitution threat significant; but Beyond Meat has earned a loyal customer database with its unique offers.

Competitive Rivalry in Beyond Meat

The competitive rivalry among companies is very high in the plant-based meat substitute business as a competitive forces in strategic management. Some of the main factors impacting competitive rivalry in the Beyond Meat five forces analysis of plant-based meat substitute business are as follows;

I-Competitors

Beyond Meat has to fight tough competition in the plant-based meat substitute food market. There are multiple competitors both in the traditional meat and plant-based meat market; Nestle, Impossible Food, and NotCo are some of the few. It has become highly difficult for the plant-based meat substitute brand Beyond to maintain its brand market position.

Conclusion: Beyond Meat Porter’s Five Forces Analysis |5 Forces Analysis of Beyond Meat

After an in-depth study of Porter’s five forces analysis of Beyond Meat; we have realized that Beyond Meat is the world’s leading plant-based meat substitute offering company. If you are learning about the Beyond Meat 5 forces analysis of plant-based meat substitute business; then you should keep in mind the abovementioned bargaining power of suppliers and buyers; threat of new entrants and substitutes; and intense rivalry as competitive forces in strategic management.