Business & Marketing Case Study: Profitability Analysis at Best Potato Chips Inc

Profitability Analysis at Best Potato Chips Inc
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Best Potato Chips Inc relies heavily on Value Savings Stores. This is reflected in the company’s finances which indicate that more than 65% of its revenues come from Value Saving Stores, which is the company’s only mass merchandise custom. This scenario implies that Best Potato Chips Inc risks are concentrated on one customer rather than being spread across different customers. While the demands presented by Value Saving Stores may reflect some genuine problems, they also imply that Value Savings Stores has significant influence on Best Potato Chips Inc. Based on Porter’s Five Forces, Value Savings Stores has a high customer bargaining power, which i...