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The competitive environment of Darden would be studied via Porter's 5 forces analysis which would highlight the degree of competition in the market.
Currently we can see that the adhesive market has a high development potential due to the existence of fragmented sections with Darden taking pleasure in leadership and a combined market share of 75% with 2 other market gamers, Eastman and Permabond. While industry rivalry between these gamers could be called 'extreme' as the consumer is not brand name mindful and each of these gamers has prominence in terms of market share, the fact still remains that the market is not filled and still has numerous market sections which can be targeted as potential specific niche markets even when releasing an adhesive. We can even point out the truth that sales cannibalization may be leading to market rivalry in the adhesive dispenser market while the market for instantaneous adhesives provides development capacity.
Bargaining Power of Buyer: The Bargaining power of the purchaser in this industry is low especially as the buyer has low understanding about the product. While business like Darden have actually managed to train distributors concerning adhesives, the last consumer depends on suppliers. Roughly 72% of sales are made directly by makers and suppliers for instant adhesives so the buyer has a low bargaining power.
Bargaining Power of Supplier: Provided the truth that the adhesive market is controlled by three players, it could be said that the provider delights in a higher bargaining power compared to the buyer. Nevertheless, the fact remains that the supplier does not have much influence over the buyer at this moment particularly as the buyer does not show brand name acknowledgment or rate sensitivity. When it comes to the adhesive market while the purchaser and the manufacturer do not have a major control over the actual sales, this indicates that the supplier has the greater power.
Threat of new entrants: The competitive environment with its low brand name commitment and the ease of entry revealed by foreign Japanese rivals in the immediate adhesive market shows that the market enables ease of entry. If we look at Darden in specific, the company has dual capabilities in terms of being a producer of instantaneous adhesives and adhesive dispensers. Prospective risks in devices dispensing market are low which shows the possibility of producing brand awareness in not only instantaneous adhesives but also in giving adhesives as none of the industry gamers has actually handled to place itself in double capabilities.
Threat of Substitutes: The risk of replacements in the instant adhesive industry is low while the dispenser market in particular has replacements like Glumetic suggestion applicators, inbuilt applicators, pencil applicators and advanced consoles. The truth remains that if Darden introduced Bond-A-Matic, it would be enjoying sales cannibalization for its own items. (see appendix 1 for structure).