Reference no: EM133356858

Assignment:

Peer Review the essay below. This assignment focuses is on Porter's Five-Forces Model to assess the Industry Environment of Beyond Meat.

Criteria for Peer Review

1. Was the industry identified in the paper?
2. Did the person focus on analyzing the whole industry rather than just the assigned company?
3. Were all six Porter's Forces of Competition addressed?
4. Did the person provide a well-explained conclusion on whether each force had high, medium, or low impact/power?
5. Were more than enough sources used to provide a balanced/objective analysis of the industry?

Introduction

One helpful tool is Porter's Five Forces Model when researching the kind of competition present in a given sector of the economy. The intensity of competitive rivalry is one of the five factors, along with new entrant's threat, suppliers bargaining power, buyers bargaining power, replacement goods or services threat, and finally substitute products or services threat (Dias et al., 2023). When doing a market analysis for Beyond Meat, a firm specializing in producing plant-based meat alternatives, it is essential to consider each of these factors. The literature will explore these forces by analyzing Beyond Meat to consider their effectiveness.

Forces of competition

The first force is the threat of new entrants. Competition from plant-based meat alternatives is seen as relatively low to medium. Although it is a young and expanding market, investing heavily in getting a brand known is necessary. Beyond Meat is a pioneer in the sector and has built a formidable reputation. Developing new items requires investment in research and development, networking with merchants and distributors, and establishing a name for superior goods (Abalkhail, 2019). As a result, upstarts need help breaking into the market and competing with well-established names like Beyond Meat. In addition, the firm owns patents and trademarks that make it more difficult for competitors to copy its offerings. The firm also has a robust distribution infrastructure, which offers it a leg up on incoming competitors. These obstacles make it challenging for upstarts to compete with industry leaders like Beyond Meat.

Suppliers in the plant-based meat sector are seen as having low leverage in negotiations. Pea protein, soy protein, and wheat gluten, all utilized in Beyond Meat and other plant-based meat alternatives, are relatively easy to come by. This gives the business several potential suppliers and the flexibility to switch to other vendors as required. The negotiating leverage of suppliers is further diluted since the components used in plant-based meat products are also utilized in a wide range of other food items. Beyond Meat, suppliers face competition from other providers in the market who can offer the same ingredients, which further dilutes the negotiating power of the suppliers themselves. Beyond Meat has many options, so vendors must refrain from overcharging them or imposing unreasonable conditions. Suppliers have less leverage since Beyond Meat has contracts with some of them to guarantee a steady supply of ingredients.

The bargaining power of the buyers is the other force that is a consideration. Buyer power is seen as moderate in the plant-based meat market. Despite many similar goods on the market, Beyond Meat has distinguished itself as a leader in the industry thanks to its prominent brand recognition and stellar reputation for quality. However, buyers' negotiating leverage may be temporarily restrained by several variables (Juliana & Nyoman, 2019).

In the case of plant-based Meat, for instance, the market is still in its infancy and subject to fast change; as a result, there may be few well-established brands or products available to consumers. It is also possible that many customers need more familiarity with the many alternatives currently on the market to make educated purchases. These characteristics may temporarily weaken buyers' negotiating position, but as the market develops and expands, consumers will have more choices and leverage in negotiations. They will be able to choose from a wider variety of well-known brands. Customers will have more leverage in negotiations and see lower prices as a result of more competition in the market.

Substitute products or services is another force of competition. The plant-based meat market has medium competition from similar services and goods. Although various plant-based meat replacements, such as those manufactured from soy or peas, are available, Beyond Meat stands apart due to its use of pea protein as its primary component. The firm's distinctive positioning is a crucial factor in the success of its branding and reputation-building efforts. Plant-based Meat has its detractors, but traditional Meat, fish, and vegetarian alternatives are all viable alternatives. Other plant-based meat producers are also developing novel offerings that may be considered alternatives. Considering the abundance of competing choices accessible to consumers, the plant-based meat market faces a moderate danger of substitution.

Next is the intensity of competitive rivalry. Competition is high in the growing vegan meat market. Growing competition comes from well-established companies like Tyson and Nestle and innovative newcomers like Impossible Foods. Since the rivalry is so stiff, businesses in this sector must find new ways to set themselves apart from the pack to sustain their market presence (Baxter, 2019). To keep up with the ever-increasing competition, businesses are pouring resources into research and development to create innovative new goods and enhance old ones. Companies are engaged in pricing wars to attract clients, and more significant marketing and promotion activities have resulted from the increased number of rivals in the market.

The last of Porter's Five Forces Model is the power of distributors. Regarding Beyond Meat, distributors have a medium amount of sway. While the corporation does have distribution relationships with supermarket stores and fast food restaurants, it does not have complete control over its distribution routes. The corporation has a commanding market share, yet it still relies on distributors to get its wares into the hands of consumers (Abalkhail, 2019). Because of this, companies have less sway in the distribution chain and must negotiate with distributors on pricing, discounts, and shelf space.

Conclusion

Beyond Meat, a plant-based meat replacement firm, competes in a very intense sector with medium levels of new entrant danger, supplier bargaining power, buyer bargaining power, the threat of alternative goods or services, and fierce rivalry. Established companies like Beyond Meat are tough to compete with because of the company's first-mover advantage, powerful brand, and reputation for producing high-quality goods. Since the components in Beyond Meat's faux meats are so commonplace, the company has several alternatives for suppliers and can easily switch to new ones if necessary. Consumers will have more alternatives and leverage in negotiations as the market develops.