<p style="text-align: justify;">Marubeni Corporation is a Japanese general trading company. It has been dealing in the fast-moving consumer goods, chemicals, and types of machinery sector. In addition, offering products and services related to food products, apparel, and other functional materials. Operating within the consumer goods industry, the corporation was established in 1949 with the location of its headquarters in Tokyo, Japan.</p>
<p style="text-align: justify;">As of 2020, the company generated handsome revenue of 7,401 billion Yen, and the firm has an active workforce figure of over 38,000 (Marubeni 2019). From the consideration of the global consumer goods industry, the evaluation of Porter&#8217;s five forces is a valuable framework to calculate improved procedures and policies to better comprehend the condition of the firm in the industry.</p>
<h2 style="text-align: justify;">Marubeni &#8211; Competitive Rivalry in The Market</h2>
<p style="text-align: justify;">The competitive rivalry within the consumer goods industry is intense. Because of the increasing societal and individual households needs in today&#8217;s world, as well as the different variants of products whose usage is significant. As an outcome of these needs, a number of consumer products companies have entered the market to supply essential goods to fulfill the demand and needs through different platforms, ultimately resulting in tough competition among the established corporations.</p>
<p style="text-align: justify;">The major competitors of the firm are Mitsubishi Corporation, Mitsui &; Co, ITOCHU, and Sojitz. As of 2020, Marubeni is trying to lead the industry with a market capitalization of 1.7 trillion, while at the same time, other companies in the industry are standing at a market capitalization of 3.8, 3.2, 4.3 trillion, and 2798 billion in the market (Craft, 2020). Therefore, the presence of such big names in the industry makes the environment more complex.</p>
<h2 style="text-align: justify;">Marubeni &#8211; Threat of Entrants</h2>
<p style="text-align: justify;">The risk of entrants is regarded as low to moderate in the consumer goods industry. Due to the costs of starting a firm in the consumer goods sector, such as the necessity to invest a significant sum of money. Other consumer goods firms have overtaken them as the leading defining consumer goods corporations, providing possibly the best brand products at low rates. It takes time to build strong partnerships with good distribution, and incumbent players&#8217; economies of scale are another threat to developing enterprises (Cuervo-Cazurra and Rui, 2017).</p>
<p style="text-align: justify;">Smaller enterprises who create local things with the same level of intention, on the other hand, have begun to operate, diverting a small portion of the market away from the big competitors. Hence, in the consumer goods industry, the threat is considered low to moderate.</p>
<h2 style="text-align: justify;">Marubeni &#8211; The Threat of Substitution</h2>
<p style="text-align: justify;">The threat of substitution in the consumer goods industry is relatively low. The reason being that there are few replacements for the items manufactured in the sector where Marubeni Group operates. However, there are just a few widely available alternatives that are of equivalent quality but far more expensive.</p>
<p style="text-align: justify;">On the other side, existing service manufacturers with adequate strength in the field sell at reasonable or lower prices than competitors. In addition, clients are less likely to move to alternatives because of their established brand satisfaction and recognition (Descotes, 2015). Therefore, in the consumer goods industry, the options of threat are considered as low.</p>
<h2 style="text-align: justify;">Marubeni &#8211; Bargaining Power of Buyers</h2>
<p style="text-align: justify;">The Bargaining power of consumers in the consumer goods industry perspective is moderate because there are many options to choose from. Additionally, there is a minor product variance, and having a large selection makes it much easier for clients to make choices. Customers can quickly shift from one corporation&#8217;s products to another since they can readily switch, giving them negotiation power.</p>
<p style="text-align: justify;">Clients also have access to detailed information about goods and services, making switching from one label to another much easier and faster (Villas-Boas, 2015). Hence, in the context of consumer goods business, consumers have a moderate hold.</p>
<h2 style="text-align: justify;">Marubeni &#8211; Bargaining Power of Suppliers</h2>
<p style="text-align: justify;">The Bargaining power of suppliers in the consumer goods industry is considered low. Due to this reason the industry in which the company operates has an extensive network of suppliers as opposed to buyers. As a result, different companies sell the same product and package, reducing the importance of price.</p>
<p style="text-align: justify;">Furthermore, businesses often buy in bulk, and switching costs for suppliers are considered low, further lowering vendors&#8217; bargaining power in the marketplace. Consumer goods companies wield considerable weight in the business, allowing them to impose their conditions on contractual agreements (Selwyn, 2013). Thus, supplier power of negotiation in context to the consumer goods industry is considered low.</p>
<h3 style="text-align: justify;">References</h3>
<p style="text-align: left;">Craft, 2020. Competitors. [online] craft.co. Available at: https://craft.co/marubeni/competitors.<br />
Cuervo-Cazurra, A. and Rui, H., 2017. Barriers to absorptive capacity in emerging market firms. Journal of World Business, 52(6), pp.727-742.<br />
Descotes, R.M. and Pauwels-Delassus, V., 2015. The impact of consumer resistance to brand substitution on brand relationship. Journal of Consumer Marketing.<br />
Marubeni, 2019. Annual Report. [online] marubeni.com. Available at: http://marubeni.com/.<br />
Selwyn, B., 2013. The global retail revolution, fruit culture and economic development in north-east Brazil. Review of International Political Economy, 20(1), pp.153-179.<br />
Villas-Boas, J.M., 2015. A short survey on switching costs and dynamic competition. International Journal of Research in Marketing, 32(2), pp.219-222.</p>