Marcus Remillard, Gavin Lobb, Mikey Frazier Professor Shea MGT 499-06 February 27, 2023 Introduction This report analyzes the five forces within the Plant-Based Meat sector of the meat industry. The result of this analysis will decide if Beyond Meat should acquire a chain of meat retailers to be rebranded as a Beyond Meat storefront. 5 Force Analysis: Threat of Substitutes The threat of substitutes for Beyond Meat is moderately strong. Seeing that plant-based meat itself is a substitute for beef, chicken, and pork, this seems to be the most relevant threat. According to the article, the price per pound of meat in a grocery store is a third of the price per pound for Beyond Meat (Pg 22). Seeing the extreme price difference, some consumers …show more content…
Although the bargaining power of buyers is low, and the threat of new entrants is low, the potential to increase profit cannot be justified. The first thing that we used in making this decision is the bargaining power of suppliers. The shortage of pea protein causes a large threat in the potential to make profit because pea protein is an essential part in plant meat production. If a supplier is unable to supply pea protein or unwilling to sell the protein at a profitable price production will be slowed in a market where a high supply of product is vital to success. Next, we looked at the moderately strong threat of substitutes. The real meat industry will always be a large threat to the plant-based meat industry due to the fact that they offer all of the same products at only one third of the price. The price disparity between these two offers a big advantage to the real meat industry. If production falls or the economy sees any form of disparity then consumers will just return to buying real meat. The drawbacks of a shortage of pea protein and completion within the market diminish the profitability of opening these new 18
It seems as if the motive to the industry has not changed since federal laws were passed in 1906; that is, they look for a quick processing line. The pressure to be quick has not stopped, causing many to become sick and injured. An article from Mint Press in 2014 stated “The U.S. Department of Agriculture that would raise top processing speeds by nearly 25 percent.” At the least, they are trying to attack the bacteria within the meat by zapping it with x-ray and gamma ray
In the early twentieth century American ranchers tried to break up the Beef Trust. In 1917 there were four main companies that controlled the entire industry. While this trust was effectively busted, allowing ranchers to sell their cattle at competitive prices for a few decades, the Reagan administration allowed the top four meatpacking companies to combine. In 1970 they slaughtered 21% of the nation’s cattle today the slaughter 84%. This is causing many ranchers to sell their cattle and quit.
Grazing and growing feed for livestock now occupy 70% of all agricultural land and 30% of the ice-free terrestrial surface of the planet. If these current events continue, meat production is predicted to double between the turn of the 21st century and 2050. Yet already, the Earth is being overpowered by livestock that consume massive quantities of energy and resources, whose wastes contaminate waterways and farmlands, and when eaten excessively, degrade our health. Pollan makes a considerable point when discussing concentrated animal feedlot operations, “The economic logic of gathering so many animals together to feed them cheap corn in CAFOs is hard to argue with; it has made meat, which used to be a special occasion in most American homes” (pg. 67, An Omnivore's Dilemma).
The U.S. agricultural industry can now produce unlimited quantities of meat and grains at remarkably cheap prices. But it does so at a high cost to the environment, animals and humans”
Big business owners in the early 20th century had minimal competition, allowing them to take over the market. All in all, the meat production industry and all other food industries should definitely be regulated in order to ensure the safety of the American
This evidence supports the claim that the meat industry causes massive waste of resources and hinders the fight against world hunger. The quote shows the blatant inefficiency of meat production, using this to induce the world hunger argument, later giving numerical values that express the positive potential of an all-vegetarian society. Jim Motavalli successfully uses the inefficiency of the meat industry as a reason for environmentalists to become vegetarian and uses valid
In the past years Americans have become more conscious about their diets and the environment. More and more individuals are hopping on the trend to be more plant-based and some may wonder if leaving behind the precious protein that Americans have come to admire is worth it. Diving deeper into the environmental effects, economic comparisons, health benefits, and threats of the plant-based diet can help an individual gauge whether the pros of the diet outweigh the cons. Understanding the effects the meat industry has on the environment is monumental in the consideration of a plant-based diet. Not many individuals can grasp the number of farm animals that live on Earth.
Plutarch and Shelley lived in a time that allowed commoners and the lower class to be able to grow their own food, on the contrary, in 2012 less land is available to make farmland and the meat industry is an enormous powerhouse. Agreeing with this claim, Welin et al commented, “The increase in human population and the expansion of agricultural land. . .there is simply no free space left” (p. 8). Population growth has diminished obtainable farmland thus access to fresh produce. If fresh produce declines the rise of meat increases, as such cheaper meat will be more of an option compared to the more expensive than a “healthier” lifestyle.
In the twentieth century, according to Food Inc., national monopolies replaced the local monopolies, so that only five companies control 90% of the meat packing plants. Now, too,
However it doesn’t have a large impact on the food industry as such as consumers need to purchase food in order to survive. Although they may decrease quantity of foods they choose to buy, they are still willing to purchase basic foods that will sustain their health. Consumers are more likely during an economic downfall to spend their money on foods they require rather than want. The company as a result obtains an advantage from its competitors as they produce long lasting food options, which allows consumer’s to save during tough times. This highlights an opportunity for the company as they produce healthier and simple food varieties which many customers desire.
Some of their products would go bad and spoil before even reaching their destination. This loss of supply would be inefficient, and decrease chance at profits for these companies. Agribusiness has evolved throughout the years, and these changes should be embraced instead of shunned. These developments are extremely
The meat industry has helped our economy become as strong as it is due the amount of people that consume it. According to an article by Zach Nold, he mentions the negatives of taking out the meat industry from our economy. He cites the EPA when he states, “The beef industry is so important that in the 2000s, it produced $49 billion annually in direct economic output” (Nold). This shows how big the meat industry is in our economy. Keep in mind, these numbers reflect only the beef industry, not including meats such as pork, chickens and other industries that produce meat.
These firms supply around 25% of retail products where as 75% is purchased from more than 2000 producers. Threat of Substitutes The products that Eataly is offering include wine, pasta, pizza and cheese being their universal product. Eataly is able to differentiate them with artisanal slogan. On the other hand ‘small size market chains’ or larger stores might supply similar or same products from and can be compete or substitute Eataly in long term through changing their structure (Carlucci & Seccia,
Pharmaceutical products require various types of organic chemical. There are a number of chemical suppliers present in the market. Instead of buying chemicals at the high cost, pharma companies can switch from one company to other. For specific APIs where the sourcing of raw materials is difficult, suppliers have a higher bargaining power but since most raw materials are easily available and suppliers are numerous, where one can easily replace the other, their bargaining power is low. " Bargaining power of buyer: