Page 9 - Tyrrells Flip Teaching Guide

Bargaining power of suppliers

Suppliers provide raw materials such as potatoes, spices

and other ingredients. The primary raw material - Potatoes-

is in-house produced at Tyrrells Farm using heritage stock

providing a substantial competitive advantage.

Higher cost of input commodities leads to lower margins,

making the market unattractive for distributors and retailers

(in an already low-margin, high-volume market)

Shortage of any input material may also affect production

and thereby impact distribution e.g., weather

Veteran players like Burt and Kettle already have a well-

established network of suppliers.

Bargaining power of customers

Tyrrells enjoys a healthy market position with a 35 percent

return on investment.

Competitor differentiation is in terms of variants and
communication.

Ability to substitute is high as brands are priced similarly
and distribution problems for one brand promote sales for

the other.