Food Retail Industry In Sweden - Porter's Five Forces Strategy Analysis

A strong Nordic concentration and integration is occurring along with a comprehensive process of consolidation and cross-border acquisitions among the European retailers. The Nordic countries are increasingly becoming part of the European retail market as globalization is accelerating and foreign chains are expressing and increased interest in the Nordic market. Recent mergers and restructuring of the Nordic food retail sector offers new interesting opportunities in terms of large volumes and diversity of products being demanded. There is a great demand for organic and convenience food and food and beverages which appeal to the health conscious.

The Swedish food market has for a number of years been influenced by consumer awareness of health, environmental and social issues, which has led to the introduction of certified organic foods, as well as Fair Trade labeled products, especially within natural product groups such as fresh fruit and vegetables, cereals and coffee.

Aruvian Research analyzes the Food Retail Industry in Sweden in Michael Porter's Five Forces Analysis. It uses concepts developed in Industrial Organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Porter referred to these forces as the microenvironment, to contrast it with the more general term macro-environment. They consist of those forces close to a company that affect its ability to serve its customers and make a profit. A change in any of the forces normally requires a company to re-assess the marketplace.