Porter’s Five Forces Analysis of Mars

Mars is a confectionary, confectionary food, and animal care service providing American multinational company. Franklin Clarence Mars founded the Confectionary Food and veterinary services Providing Company in 1911. Today, we’ll discuss Porter’s five forces analysis of Mars; bargaining power of suppliers and buyers; threat of new entrants and substitutes; and intense rivalry as competitive forces in strategic management.

Substitutes and competitors of Mars

• PepsiCo
• Lindt
• Mondelez
• Kraft
• Nestle
• Dino Polska
• Conagra
• Hershey

Porter’s five forces analysis of Mars 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 Mars Porter’s five forces analysis of confectionary food and veterinary services as follows;

Porter’s Five Forces Analysis of Mars

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

Bargaining Power of Suppliers on Mars

The bargaining of suppliers is Moderate in the confectionary food and veterinary service business as competitive forces in strategic management. Some of the main factors impacting the bargaining power of suppliers in Mars Porter’s 5 forces analysis of confectionary food and veterinary services are as follows;

I-Suppliers Network

The chocolate suppliers of Mars are from Ghana, Indonesia, farmers, Ivory Coast, and other countries. They have established a good relationship with cocoa farmers to ensure the smooth availability of raw supplies and materials without any disruptions. It is mutually beneficial both for the farmers and the confectionary brand.

II-Quality & Cost

Mars could easily switch to other low-cost suppliers, but it would impact the quality of raw materials and supplies. In order to keep working the brand, suppliers need to work for hand and offer top-quality products to the confectionary brand.

Bargaining Power of Buyers on Mars

The bargaining of Buyers is Higher in the confectionary food and veterinary services business as competitive forces in strategic management. Some of the main factors impacting the bargaining power of suppliers in the confectionary food and veterinary services five forces analysis of Mars are as follows;

I-Multiple Confectionary Options

While shopping for confectionery, pet food, and other veterinary services, ordinary shoppers have multiple brand alternatives. They could easily switch from one brand to another because brand loyalty is very important in the confectionary market. Customers want a unique experience and prefer to try out something new and different; it increases their bargaining power.

II-Special Offers

In order to differentiate its offers from the competitors, Mars introduced a special offer on various occasions like Mother’s Day, Valentine’s Day, and other holidays. The special offers help the company to earn the trust and confidence of customers. However, the limited offer attracts the attention of customers and they want to try it out and become a part of it.

Threat of New Entrants on Mars

The threat of new entrants is lower in confectionary food and veterinary services as competitive forces in strategic management. Some of the main factors impacting the threat of new entrants in the confectionary food and veterinary services five forces analysis of Mars are as follows;

I-Large Network

Mars has been operating its business in the food, confectionery, and veterinary service business for the past over 110 years. The brand is running its business network in over 80 countries, and the company offers confectionary products under various brand names in various markets worldwide. The mass scale operations and worldwide network decrease the threat of new entrants rate.

II-Regulatory Requirements

The other factor that discourages various new entrants is complying with the food and safety regulatory requirements. While complying with the regulatory requirements, then it increases the overall operational cost and negatively impacts the company’s sales, revenue, and profitability.

Threat of Substitutes to Mars

The threat of substitute products and brands is higher on Mars as competitive forces in strategic management. Some of the main factors impacting the threat of new substitutes in the confectionary food and veterinary services five forces analysis of Mars are as follows;

I-Multiple Chocolate Alternatives

There are multiple chocolate and confectionary brands available in the market and they all provide unique flavors. They don’t have to invest a significant amount of resources in R&D to come up with a unique taste and flavor. Easy availability of multiple alternatives would increase the threat of substitution rate.

II-Protein Bars

The protein bar is a great substitution for various chocolate bars as a healthy alternative option. On the other hand, the customer market trends are also shifting towards healthy brand options, and they’re further increasing the substitution rate.

Competitive Rivalry on Mars

The competitive rivalry among Mars is very high in the Mars as competitive forces in strategic management. Some of the main factors impacting competitive rivalry in the Mars Five Forces analysis of confectionary food and veterinary services are as follows;

I-Tough Competition

Mars is facing tough competition from competitive confectionary brands like Mondelez, Nestle, Hershey, Meiji, and Ferrero Group. They all have established a strong market share and a loyal database of customers. Low switching costs would further increase the competitive rivalry among competitors and make the confectionary industry highly competitive.

II-Advertisements

There is no doubt Mars has established a market leadership position in the confectionery and food industry. In order to retain its market share and brand influence, the confectionary brand runs funny, charming, cute, and catchy marketing and advertisement campaigns. It allows the company to maintain its market leadership position.

Conclusion: Mars Porter’s Five Forces Analysis |5 Forces Analysis of Mars

After an in-depth study of Porter’s five forces analysis of Mars; we have realized that Mars is the world’s leading confectionary, pet food, and veterinary service-providing company. If you are learning about the Mars 5 forces analysis of confectionary food and veterinary services; 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.