Porter’s Five-Forces’ Analysis of the Spanish Olive Oil Industry

1038 words 5 pages
| Alicia Monzón | | Strategic Management 2ºA |

The Spanish Olive Oil Industry

The Spanish Olive Oil Industry


Introduction 2 1. Intensity of current competence 2 2. Menace of New Entrance 3 3. Menace of substitute products 3 4. Bargaining power of suppliers/ 5. customers 4 Bibliography 4


The cultivation of olives and the production of olive oil have deep roots in the history of Spain. The olive, a symbol of peace, and the tree which produces olives (olea europea) are known to have been cultivated around the Mediterranean about 6000 years ago. Its origin could be the eastern Mediterranean, but most probably it
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For example the soya oil, sunflower oil, palm oil or corn oil.
Do these products improve the relationship quality-price compared to the olive oil? All the surveys agree that the customers prefer the quality of the olive oil, than the lower prices of the other vegetable oils. “The society associates the olive oil properties with benefits for their health. A large part of the Spanish considered to have a positive effect for the treatment and prevention of diseases such as atherosclerosis (28'64 %), cholesterol (17,15%), cardiovascular risks (7.80%), diabetes (7.46%) or tuberculosis (4.46%).”
Also it is been proven that the olive oil is the only vegetable oil that maintain all its chemical properties at high temperatures, being healthier than the other oils. Furthermore the olive sector haven’t accelerate technological changes they currently use standard technologies, with low changes, only the companies of largest market share can afford the investment in new production techniques.

4. Bargaining power of Suppliers / 5. Customers

The concentration of suppliers related to the buyers is very low as there are a lot of suppliers for a lot of customers; suppliers have a very low bargaining power. There is a big pressure and competence inside the industry. There is perfect information for example as the prices of the oil settled by Europe that are available in the internet for example for any consumer that wants to check them. There aren’t switching


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