External Environment Analysis of Functional Food Industry in Australia

Running head: FOOD MARKETING
food marketing

FOOD MARKETING 1
Executive Summary
The report aims at providing the external environment analyses of functional food industry of
Australia by applying the five-factor framework of Michael Porter. The report describes the
current market state of the industry as well as the potential for new products and competitors
also. At the end of the report, a summary has been provided to conclude the overall
understandings of the report. On the basis of such understanding, some recommendations are
provided that can help the existing firm in increasing the performance as well as the
profitability.

FOOD MARKETING 2
Table of Contents
Introduction................................................................................................................................3
Background................................................................................................................................3
The Industry............................................................................................................................3
Growth................................................................................................................................3
Size......................................................................................................................................3
Profitability.........................................................................................................................3
Porter’s Five Forces Framework................................................................................................3
Competitive Rivalry...............................................................................................................4
The threat of Substitutes.........................................................................................................4
Barriers to Entry.....................................................................................................................4
Bargaining Power of Suppliers...............................................................................................5
Bargaining Power of Buyers..................................................................................................5
Opportunities and Threats..........................................................................................................5
Opportunities..........................................................................................................................5
Threats....................................................................................................................................5
Conclusion..................................................................................................................................5
Recommendations......................................................................................................................6