Saxonville Sausage Case Study Report

Saxonville Sausage Case Study Report.
1.Industry

    • The industry in this case is US meat production industry; dinner sausage sales increased 4.6 percent, with more than 1.6 billion in sales. Breakfast sausage sales remained relatively steady, at 8.7 million in sales. It was in its mature stage in product life cycle.

    • Key industry trends: 1.growth of Italian sausage markets; 2. Market remain stable as it is being saturated.

Porter’s five forces

|Bargaining power of suppliers             |Low→medium             |Meat suppliers have relatively high bargaining power due to the increasing in players in the market     |
|Bargaining power of Customers             |High                   |Lots of choices in the market, eg ,mama mia in New York;Paglia Brothers in Boston etc.                   |
|Threat of new entrants                   |Low                   |Hard to enter the market due to huge amount of competitions and the product being in mature stage with   |
|                                         |                       |less room to expand                                                                                     |
|Threat of Substitutes                     |High                   |Despite the fact that there are lots of competing brands in the industry, Instead of sausages,           |
|                                         |                       |households can substitutes lots of other stuff to make meals                                             |
|Competitive Rivalry                       |High                   |Competitions from various of other brands and companies that make sausages, competition from other meat |
|                                         |                       |products, competition from actual Italian owned brand products—(referring to Vivio’s specific           |
|                                         |                       |competition)...