Five Forces Within The Plant-Based Meat Sector Of The Meat Industry
Marcus Remillard, Gavin Lobb, Mikey Frazier Professor Shea MGT 499-06 February 27, 2023 Introduction This report analyzes the five forces within the Plant-Based Meat sector of the meat industry. The result of this analysis will decide if Beyond Meat should acquire a chain of meat retailers to be rebranded as a Beyond Meat storefront. 5 Force Analysis: Threat of Substitutes The threat of substitutes for Beyond Meat is moderately strong. Seeing that plant-based meat itself is a substitute for beef, chicken, and pork, this seems to be the most relevant threat. According to the article, the price per pound of meat in a grocery store is a third of the price per pound for Beyond Meat (Pg 22). Seeing the extreme price difference, some consumers …show more content…
Although the bargaining power of buyers is low, and the threat of new entrants is low, the potential to increase profit cannot be justified. The first thing that we used in making this decision is the bargaining power of suppliers. The shortage of pea protein causes a large threat in the potential to make profit because pea protein is an essential part in plant meat production. If a supplier is unable to supply pea protein or unwilling to sell the protein at a profitable price production will be slowed in a market where a high supply of product is vital to success. Next, we looked at the moderately strong threat of substitutes. The real meat industry will always be a large threat to the plant-based meat industry due to the fact that they offer all of the same products at only one third of the price. The price disparity between these two offers a big advantage to the real meat industry. If production falls or the economy sees any form of disparity then consumers will just return to buying real meat. The drawbacks of a shortage of pea protein and completion within the market diminish the profitability of opening these new 18
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