Mamee Threat - Competition in the Market

Threats

Competition in the market

With increasing number of local and national players, it becomes very hard for Mamee to differentiate themselves from others. There are many existing competitors in Malaysia such as Nestle, Munchys; they offered similar snack food products to Mamee double decker. Nowadays, the consumers concerned more on the quality of products they consume as well as the price of the product. When other competitors provide better quality of products at the same time the price is more reasonable than Mamee, the customers are likely switch to other brands. In order to be outstanding in the market, Mamee has to enhance the quality of products and they have to apply strategies to win the competition because the competition is fierce in the industry.

Buyers’ power

There are a number of companies selling similar kind of products like Mamee, so with the highly diversified consumer goods market, the threat of substitute is high which provides multiple choices to the consumers to choose whether to purchase which brand of products. There are lots of brands claiming different sorts of benefits, so the consumers have very influential choices and hence results into brand switching where the consumers have high power to select a brand based on several factors like availability, reference group recommendation, preference and price (Martin 2014). When there are little switching costs for consumers, and then there is more chance that they may purchase a more attractive substitute so it is very difficult for consumers to stick to a particular brand.

Martin 2014, Threat of substitutes, porter’s five forces model, viewed 30 Nov 2018, < https://www.cleverism.com/threat-of-substitutes-porters-five-forces-model/>.