Page 54 - How not to cheat

Five Forces analysis of the chips industry

1. Competitive rivalry: The competition within the

industry is intense and is largely dominated by

established players. The competitors are constantly
launching new variety of chips supported by million

dollar marketing campaigns.

2. Bargaining power of suppliers: The bargaining power

of supplier is relatively non-existent because potatoes

are grown in Tyrrells’ own farm. The main raw material
is grown in their backyard and hence they are immune

to supply side shocks.

3. Bargaining power of customers: The bargaining power

of consumers is very high. Consumers have large array

of options to choose from. They have the option of
switching from one brand to other in no time.

4. Threat of new entrants: The threat of new entrants is

always there. The big competitors can launch a new line

of chips anytime which will add to the existing

competition in the market. If there is a price war, Tyrrells

will be the one which will be worst hit as all its products
sell at a premium, the price of which is already on the

higher side.

5. Threat of substitute products or services: Threat of

substitutes is relatively lower for Tyrrells chips. The

substitutes are expected to be a healthy alternative of

fried chips and Tyrrells chips is already having the image
of healthy chips. So, any substitute product is less likely

to affect the Tyrrells brand.