Beyond Meat Essay

Beyond Meat which is in the plant-based meat industry is an unattractive industry to venture. The food industry is a competitive industry, and the plant-based industry is viewed as subindustry to the overall food industry. When evaluating Beyond Meat as a plant-based industry, they look attractive based on their high stock price and growing revenue (p.7), however Beyond meat has dominated their industry with essentially being one of two companies leading the industry and investing heavily into their company. For new entrants this is an unattractive industry because of high capital requirements to catch up to companies like Beyond Meat. Also with extremely low concentration of suppliers to this industry firms “Beyond Meat relying on two different

The plant-based food industry is being described as hyper competitive with new and existing brands competing in the market (p.1). Product differentiation is low based on that it is plant-based meat which mainly imitates “beef, pork and poultry” (p.2), leaves not much room for product differentiation outside taste which is an important factor however the products are too similar. Capital requirements will also be high with new plant-based companies having to invest and be competitive to Beyond Meat Inc in terms of innovation and Research and development (p.2). Although low product differentiation and high capital requirements typically lead to a more difficult industry to enter, because of the future potential factor of “regular meat product raising in prices” (p.5) and “health problems correlated to red meat” (p.3) makes this industry more welcoming to new companies that are potentially

The main reason is both prices and the distinctiveness of the products of current competitors being high. Prices because as of right now a package of beyond meat product at times can be 3 times or more the price of regular beef products (p.5). The distinctiveness of the products being high also gives a lot of power to the buyers as stated before there is not much product differentiation in the plant-based industry however in the food industry there are multiple types of beef, pork or poultry from the various farm animals that the plant-based industry will need to catch up with in order to be a level playing field with farm animal competitors.

Bargaining power of suppliers

The threat of bargaining power of suppliers is high. Based on the case work Beyond Meat struggled with limited suppliers, cost to ship out supplies being high, and there was a limited amount of manufacturers for the shipping companies to even get shipments out from. These negative factors lead to Beyond Meat products not getting out to the customers an example is from 2016 when several Whole foods store did not have any Beyond Meat products to put on their shelves (p.5). The supply industry as of right now have a lot of leverage over plant-based manufactures (p.5)

Threat of substitute products or