Danone

Threat of New Entrants: It is quite difficult to enter the yoghurt industry because DANONE has most

of the market shares and that makes it hard to make up a new brand. It would mean spending lots

of money to arrive to a good position.

● Bargaining Power of Suppliers: In this case the power of suppliers is exclusively related to Danone because it has more than the half of the market share and this provides a lot of power for taking decisions about price and makes it easier to invest in new yoghurts and desserts.

● Threat of Substitute Products: substitutes Product substitutes are not a huge threat. Actimel is awell known and novel product and the bacterial technolodgy behind that makes it even more difficult for other drinking yogurts which lack brand loyalty or whose prestige is not that big.

● Bargaining Power of Buyers: Buyers are the key element in order to know if the product is working or not in the market. In this case Actimel main target are consumers who wants to Have better and healthier diet. Danone with this product achieves it. The new marketing campaign in 2012 ‘The

little bottle with a lot inside’ showcasing the ingredients ‘packed’ in Actimel, including its milk, fruit

and vitamin content.

● Intensity of rivalry among competitors: The real intense rivalry among competitors happens

between little companies. As DANONE represents more than the half of the market shares, this

doesn't occur at that level. Because of the EFSA’s tightened regulations the position of the big companies in the market will be re-enforced while the arrival of new small companies will be prevented due to the

high costs of scientific research required to produce a product with a health claim. Therefore any

threat to the market leader position and sales of Actimel will either come from a new product

launched by a big multinational company or from products already on the market; which manage

to acquire an EFSA approval for a health claim they have made. For example...