Chih-Yun Chien
Student ID: 2261425
Dr. Candace Ybarra
BUS. 600 – Strategies for Competitive Advantage
Analysis of I-MEI Foods Company Ltd.
I-MEI Foods Company Ltd. was found in 1934. I-MEI engages in manufacturing, distributing,
importing and exporting food products in Taiwan. Its diverse products include confectionaries
and sweets, frozen prepared foods, beverages, and so on. I-MEI sells their food products at
around 100 I-MEI operated food stores, but their products can also be seen at lots of convenience
stores, super markets, and wholesales.
The following is five competitive forces analysis of I-MEI Foods Company Ltd.:
Threat of New Entrants: Low pressure
Barriers of entry to food industry is low, basically anyone who knows how to cook and
make desserts with a little bit money can start a business. So there are always lots of
newcomers competing with I-MEI.
But I-MEI is selling not only their products but their brand. I-MEI doesn’t have any food
safety scandals over the past few years in Taiwan, while lots of other companies in the
same industry are suffering from those scandals. So I-MEI really has built a good
reputation and has accumulated lots of loyal customers who will not easily try other new
brands.
Bargaining power of suppliers: Medium to High Pressure
I-MEI has cooperated with most their suppliers for lots of years. And those suppliers are
trust worthy that provide I-MEI with great quality ingredients and food materials for tasty
food products, helping I-MEI build a great image and receive highly reputation.
If the suppliers raise the prices, I-MEI probably could only try to accept it. Because even
there could be lots of other suppliers with lower prices, but it’s not sure that if those
suppliers’ products are as good as the original suppliers’. If something goes wrong, it
