Jacob 5 Forces Model of Competition
Introduction
Jacob’s cream crackers was first manufactured more than 50 years ago, and was one of the first few
renowned British biscuit brands to be available in Malaysia. Jacob’s is a brand name which is synonymous
with quality and wholesome nutritious goodness – a reputation that has endured over generations. Jacob’s
success can be attributed to the company’s uncompromising standards in manufacturing high quality
biscuits, its continuous research and product development, and its commitment to ensure that its product are
relevant to changing consumer lifestyles, needs and taste buds. The Jacob’s range of products has grown and
evolved from a plain cracker to a comprehensive range of quality crackers and biscuits, including Cream
Cracker, Weetameal, Hi-fiber, Low Salt Hi-fiber, Hi-Cal and it’s Oatmeal biscuits.
5 forces model of competition at Jacobs Biscuit
The strength and characteristics of a firm that operates in the same industry will differ from one to another.
According to porter 5 forces model of competition, there are 5 forces model of competition which are
substitute product, threat to new entry, potential new entrants, suppliers, buyers and rivalry among
competing sellers. These 5 elements could be seen in Jacobs firm whereby Jacobs has been the choices of
people for biscuits crackers.
For the first element of substitute product, it can be defined as the existence of a similar product. Substitute
product can be it may different than the industry since the substitute’s product is always present. However,
substitute product could cause buyers to switch from one product to another product due to many firms that
create a diversified product but still similar to the product. Buyers will compare the prices of one product to
another product. Comparatively cheaper and lower prices make the buyers to buy substitute product. In the
case of Jacobs, other firms that are similar to Jacobs will be Hup Seng biscuits, Hwa Tai, and any product
that relatively similar to jacobs firms which produces cracker. On the other hands, the probability to buy the
