2012-09-04 11:13:08 - Food Processing in China - Porter’s Five Forces Strategy Analysis - a new market research report on companiesandmarkets.com

The food processing industry is developing rapidly in China. The food industry is one of the basic industries to meet people´s living needs. Rapid economic growth combined with higher disposable income means stronger demand for high quality processed food by Chinese consumers. To meet this demand, China´s food processing industry also continues to grow at double-digit rates in excess of 10%. Experts predict that the Chinese food processing industry will surely have a bright future because currently only about one-quarter of China´ food production is processed compared to about 80% in more developed countries.

Aruvian´s R´search analyzes Food Processing in China in Michael Porter´s Five Forces Analysis. It uses concepts developed in Industrial Organization (IO) economics to

 

 

derive five forces that determine the competitive intensity and therefore attractiveness of a market. Porter referred to these forces as the microenvironment, to contrast it with the more general term macro-environment. They consist of those forces close to a company that affect its ability to serve its customers and make a profit. A change in any of the forces normally requires a company to re-assess the marketplace.

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