Question

Describe the Threat of New Entrants in the Organic Packaged Food Industry.

Please be sure that the focus is on the Organic PACKAGED Food industry.

Include:  

Who are the potential new entrants ?

Rate the force as Strong, Medium, or Weak and explain why you gave it that rating.

Answer 1

The threat of new entrant in organic packaged food industry is assumed to be Weak even though the entry into the market is relatively easy and many new companies with specialized product can enter into the market and can be successful like Market of choice etc. but the existing companies too command brand loyalty and have the dedicated customer base who associate trust in those brands and hence is not easily replaceable as well as the segment in itself is growing since consumer choice in terms of food category is shifting drastically in favor of health and organic food.