Competitor Analysis.

Industry Competition:

            The product faces   competition within the industry when other manufacturers tend to develop the same kind of products providing the consumers with a wider choice of selection . The industry competition for Lays are Balaji wafers pvt ltd , Bingo etc. Because they tend to produce the same variety of flavours and   pricing pattern which lays develop for the consumers.

                                       

 Potential Entrants:

            Parle Smart Chips , Hippo , Pringles , are the new threat for lays. They are high entry and low – exit barriers. These products were launched under reputed branding process which could reach the consumers easily.

 Substitutes:

            Any substitute product that enter into the market which may change the consumer behaviour are called as potential entrants in the market. For Lay’s chips ,  kurkure ,nachos which is a new form a potato based snack may change the consumer behaviour and become as a threat to the product.

Threats from Buyers and Suppliers:

            With the rise in the substitutes , the buyers possess strong or growing bargaining power. Earlier Lays was as costly as Rs.25/pack. But as the competition grew intense, it reduced itself to the price of Rs.20.

            Pepsico in India has introduced world class, top quality, high yielding potato varietywhich gives such a very good taste in the  chips.  If the bargaining power of the suppliers tend to be powerful or reduce the quality of the product they produce, it may tend to develop the overall quality of the product and there by affects the consumers. Lays can adopt a technique of having multiple supply sources.