The competitive rivalry or the competition is found to be high in this sector. Broad Bean Organic grocer, Whole foods and Marketto are the main competitors in this area. The company essentially needs to compete with these companies. However, these are retail companies and this business model is simply a portal to make the sales of the product to the buyer. Given the proclivity towards developing of local farmers. There are many famer’s markets that operate in this area.
This factor gives the buyer more leverage in this process. The bargaining power of the buyer or the customer is considered to be a strong force. There are a number of options for the buyer to meet the demands of the consumers. These are found to be higher for the company (Schaper, 2016).
The bargaining power of the suppliers is high. The supplier or the primary producers already have good deals with the retailer and distributors. They need to take a chance with a newer business model and this chance can cost their process efficiency. This is a newer business model that is aimed to gain more profit margin owing to this high. There are a number of companies that are developing alternative health ideas. Hence the threat of substitution is high. Added to this, the threat of newer entrants or new entry into the product to meet the requirements.
A similar notion that is considered is the rise of the food delivery apps. These can be very strong competitors. The food business is considered to be multibillion-dollar industry. The rise in the food delivery apps are skyrocketing. There are more than 130 cuisines that are now ordered and some haute cuisine that are introduced in the markets. The impact of the apps such as Deliveroo, Menulog and foodora. These are found to be app-based food deliveries. The restaurant menus and the rise in the online fast food are giving the consumers a choice about the food cuisine and the convenience of the online food delivery options has changed in the current time. The app that is proposed in this schema is the food that must be cooked and it is based on fresh produce. The rise in these apps and the food delivery restaurnet are found to be worth around $16.4 billion. For the consumers who watch the programs such as MasterChef. The people like to deliver the greater choice. These food delivery apps that are found to be in the rise. The rise of the apps such as Menulog will be the biggest contender. These apps are found to have more than 7000 food outlets and deliver more than 130 cuisines to the people. This essentially changes the demography who wants to cook. Added to this, the company such as UberEats has combined the ride-sharing service with food delivery option. These are found to be concentrated only on the Melbourne residences.
There is higher level of competition in this sector. To launch this product, there must be unique and innovative marketing campaign. The only way to achieve this is to focus on the importance of health and development of the local farmers. The emotion that will be used to make the sales to the people is the development of the sustainability. These would essentially cause the companies to face the growth.
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