Pantry Case Study Summary

Running head: pantry inc. case analysis 1 pantry inc. case analysis 20
Pantry Inc. Case Analysis
Sekia Grimes
GEB5787

Table of Contents

Introduction 3
Industry Analysis 4
General Environment 4
Sociocultural………………………………………………………………………………4
Political/Legal…………………………………………………………………………….4
Economic…………………………………………………………………………………5
Porter’s Five Forces ……………………………………………………………………………...5 Rivalry……………………………………………………………………………………5 Threat of New Entrants…………………………………………………………………..6 Bargaining Power of Buyers…………………………………………………………….. Bargaining Power of Suppliers…………………………………………………………... Threat of Substitutes……………………………………………………………………...

Financial Analysis Balance Sheet………………………………………………………………………… Income Statement……………………………………………………………………… Dupont Analysis………………………………………………………………………. Liquidity Ratio…………………………………………………………………………

Their prices on petroleum allow them to be a substantial substitute in the industry because of the low switching costs. Consumers are also able to go to other quick service restaurants that either stand alone or operate in another convenient store.
Bargaining Power of Suppliers
The bargaining power of suppliers is high because the industry is heavily controlled and the products that are needed are imperative to the company’s operations. The Pantry’s use of forward integration contributes to this bargaining power. They receive much of their in-store goods from Budweiser, Frito Lay, and Coca-Cola, who in turn provides delivery services directly to stores.
Bargaining Power of Buyers
Low brand loyalty and minimal switching costs make the bargaining power of buyers high. Buyers make the decision to patronize other businesses when the opportunity to pay lower prices, presents itself. They are more susceptible to spend money where they can be a part of a loyalty program and receive a benefit from their purchases.

Major