Porter’s Five Forces Analysis of Baskin Robbins

Baskin Robbins is a retail chain ice cream and cake shop American multinational company. Irv Robbins and Burt Baskin founded the retail chain Ice Cream and Cake Company in 1945. Today, we’ll discuss Porter’s five forces analysis of Baskin Robbins; bargaining power of suppliers and buyers; threat of new entrants and substitutes; and intense rivalry as competitive forces in strategic management.

Substitute and Competitors of Baskin Robbins

• Nestle
• Kwality Walls
• Haagen Dazs
• Unilever
• Amul
• Dunkin Donuts
• McDonald’s
• Ben & Jerry’s
• Polar Bear
• Have more Ice Cream
• Café Chocolate
• Giani

Porter’s five forces analysis of Baskin Robbins 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 Baskin Robbins Porter’s five forces analysis of ice cream and cake business as follows;

Porter’s Five Forces Analysis of Baskin Robbins

Let’s discuss Porter’s five forces analysis of Baskin Robbins as a competitive forces in strategic management and they’re as follows;

Bargaining Power of Suppliers in Baskin Robbins

The bargaining of suppliers is lower in the ice cream and cake business as competitive forces in strategic management. Some of the main factors impacting the bargaining power of suppliers in the Baskin Robbins Porter’s 5 forces analysis of ice cream and cake business are as follows;

I-Raw Material & Supplies

Dough, flour, sugar, flavor, milk, cream, and other cooking tools and equipment are some of the main supplies and raw ingredients for ice cream and cakes. They are easily and readily available to customers, and the company can easily find their suppliers and vendors in various regions and countries across the world. Easily availability of suppliers would decrease their bargaining power.

II-Support & Network

Baskin Robbins has established a very market network of retail chain shops in over 55 countries across the world. Many suppliers prefer to collaborate and partner up with the world’s leading brands to ensure the long-term supply of raw ingredients and they don’t have to find new clients. They offer support to ensure the top quality material and ingredients; it further decreases the bargaining power of suppliers.

Bargaining Power of Buyers in Baskin Robbins

The bargaining of Buyers is Higher in the ice cream and cake business as competitive forces in strategic management. Some of the main factors impacting the bargaining power of suppliers in the ice cream and cake business five forces analysis of Baskin Robbins are as follows;

I-Variety of Ice Cream Brands

While shopping ice cream and cakes, there are a lot of ice cream and confectionary brands available in the market along with many local suppliers and vendors. They all offer unique tastes and flavors to the customers, and it decreases the solo strength of any single brand. As a result, it amplifies the bargaining power of customers.

II-Low Switching Cost

It is the nature of customers to keep changing flavors and tastes relevant to their moods, tastes, and the environmental setting. They could easily switch from one ice cream brand to another without incurring any cost and it increases the bargaining power of customers.

Threat of New Entrants in Baskin Robbins

The threat of new entrants is Moderate and high in ice cream and cake business as competitive forces in strategic management. Some of the main factors impacting the threat of new entrants in the Baskin Robbins five forces analysis of ice cream and cake business are as follows;

I-Large Network

Baskin Robbins has established a very large market network comprising over 8000 retail chain shops in 55 countries across the world. The company has earned a loyal database of customers by investing a significant amount of capital resources in marketing and advertisement campaigns. On the other hand, the new entrance companies don’t have the resources to build and maintain a large network.

II-Distribution & Entry

Launching an ice cream and confectionary business is relatively easy because it doesn’t require a lot of capital investment. The critical part is building and maintaining a large distribution network to ensure the smooth availability of raw materials and supplies to the customers.

Threat of Substitutes to Baskin Robbins

The threat of substitute products and brands is higher in the ice cream and cake business as competitive forces in strategic management. Some of the main factors impacting the threat of new substitutes in the Baskin Robbins five forces analysis of ice cream and cake business are as follows;

I-Multiple Alternatives

When it comes to choosing a sweet dish, ice cream, and dessert, customers have multiple options of cold Desserts, cakes, gelato, doughnuts, pastries, and others. These sweet items offer a unique taste and flavor to the customers. They could easily switch from one sweet option to another without incurring any cost depending on the mood and taste of customers.

Competitive Rivalry in Baskin Robbins

The competitive rivalry among ice cream and cake businesses is very high as competitive forces in strategic management. Some of the main factors impacting competitive rivalry in the ice cream and cake business five forces analysis of Baskin Robbins are as follows;

I-Tough Competition

Baskin Robbins is facing tough competition from competitive brands like Walls, Nestle, Unilever, McDonald’s, and London Dairy. These ice cream, cake, and confectionary items manufacturing brands have established a very large market network and loyal database of customers. Their market presence is negatively impacting the growth rate, network, and sales of the company.

II-Differentiation

Baskin Robbins invests a significant amount of capital resources in the development of unique and natural flavors for customers. They help the company to successfully differentiate its ice cream flavors and tastes from another competitive brand. As a result, it helps the company to maintain its uniqueness and attract the attention of customers.

Conclusion: Baskin Robbins Porter’s Five Forces Analysis | Ice Cream and Cake Business 5 Forces Analysis of Baskin Robbins

After an in-depth study of Porter’s five forces analysis of Baskin Robbins; we have realized that Baskin Robbins is the world’s leading ice cream and cake brand. If you are learning about the Baskin Robbins 5 forces analysis of ice cream and cake 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.

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