Agrana Case

1. In AGRANA has three dividends, there are sugar, starch and fruit, they also supplies fruit preparation and fruit juice concentrates to the dairy, due to their products cover many different goods and regions, although most of us never heard. In the industry view, we can through the Porter five forces to analysis it.

On the threat of new entrants, I think it is low since the AGRANA have many segments of business, in the firstly which is focusing on the sugar and starch in CEE, AGRANA has further chased it competitors. But when 2003, AGRANA exploit their competence of sugar and starch industries to a new direction, fruit to ensured additional growth of the company. In addition, AGRANA produce too many kinds of products like food, textile, chemicals pharmaceutical and even cosmetic. If there has new entrant, it is very easy if who entry in one division, like beverage or food, a firm just become a competitor of one division by AGRANA, so AGRANA will not be affected so much. Therefore, when we at the narrow view, the threat of new entrant is high, but while we stand on the broader view, the threat is low since the new entrant is hard with different conditions. Due to AGRANA have those conditions, technologies and experiences, hence the threat of substitute is low also.

As AGRANA cover many products which mostly related to daily life, natural buyers’ power is relatively higher. Like the beverage, textile or cosmetic, there must many different brands in the market, the customer will compare those products, it is easy becoming costs war since the outperformance and capability is similar.

On the suppliers’ power segment, I think that it is not a big deal since the AGRANA is a