Bimbo focuses on the tin loaf and industrial pastries sector.
The competition in this sector is oligopolistic due to the domination of two huge firms: Bimbo and Panrico. They both sell very similar products but they try to differentiate their goods in order to make them more attractive to the customers. Finally there are significant barriers to entry to the market and that’s why small firms have problems to enter, so the threat of new competitors is practically inexistent.
Bimbo is the unquestionable leader in the tin loaf industry; even most people popularly know the tin loaf as “pan Bimbo”. During the years the firm has taken over small brands and nowadays own almost 100 brands,such as “Repostería Martínez” or “ Espiga de Oro”.
However, Bimbo has a great competitor: Panrico, created in 1962 by Andres Costafreda under the name of Donut Spanish Corporation in order to product and to commercialize Donuts in Spain. Through the years the firm has adquire factories in Spain, Portugal, Greece and China, and owns several brands as “Donettes”, “Nano” or “Fontaneda”. Nowadays Panrico is the absolute leader in fried pastries (“Donut”) and in filled pastries (“Bollicao”).
Now we are going to analyze Bimbo according to the Porter’s five forces Model:
 Bargaining power of suppliers: Since in this sector of the market Bimbo has to face one single competitor (Panrico) , the firm is able to take advantage of scale economies and suppliers have no power to influence it, due to they can’t sell their products to other companies and however Bimbo could easily find another supplier.
 Potential entrants: Although the competence in this market is oligopolistic and this make difficult for new competitors to access the market, nowadays, supported by the unstable economical situation, white markings emerge as a threat for the big firms settle down in the market.
 Customer’s