Michael Porter's Five Forces model is used to analyze the competitive environment in an industry and determine an organization's position within it. The five forces include: the threat of new entrants, power of suppliers, power of buyers, threat of substitution, and competitive rivalry within the industry. For Surf Excel detergent in Pakistan, key factors analyzed are its established brand presence since 1948, distribution strategy changes over time, upper middle and high-class target consumer base, substitute brands available, and main competitors being Ariel and Bonus detergents.

1. MICHAEL PORTER'S FIVE FORCES MODEL
The Porter’s Five Forces tool is a simple but powerful tool to evaluate the power of business.
This is useful, because it helps to understand both the strength of current competitive
position, and the strength of the position moving into. With a clear knowledge of where
power lies, fair advantage can be taken in case of situation of strength, and contrarily
improve a situation of weakness, and avoid taking wrong steps. This forms an important
part of planning toolkit of business endeavor.
Conventionally, the tool is used to identify whether new products, services or businesses
have the potential to be profitable. However it can be very illuminating when used to
understand the balance of power in other situations.
Porter’s Five Forces Analysis assumes that there are five important forces that determine
competitive power in a business situation. These are:
(i) Supplier Power: This assesses how easily suppliers may drive up prices. This in lieu
depends upon the number of suppliers of each key input. The uniqueness of their
product or service, their strength and control over the entrepreneur’s cost of
switching from one to another, and so on are significant factors to measure
suppliers powers. The fewer the supplier choices, and the more is the need of
suppliers’ help, the more powerful suppliers become.
(ii) Buyer Power: This evaluates how easy it is for buyers to drive prices down. Again,
this is driven by the number of buyers; the demand for the new product or service.
The importance of each individual buyer to business, the cost to them for accepting
the new product launched, and so on are influencing factors to know how much
buyers can affect the success of business plan.
(iii) Competitive Rivalry: What is important here is the number and capability of
competitors. If there are many competitors to the new product, who offer equally
attractive products and services, then the product will most likely have little power
in the situation, because suppliers and buyers will have alternate choices to make in
case they do not get a good deal. On the other hand, if no-one else can do what you
do, then you can often have tremendous strength.

2. (iv) Threat of Substitution: This is affected by the ability of your customers to find a
different way of doing what you do – for example, if you supply a unique software
product that automates an important process, people may substitute by doing the
process manually or by outsourcing it. If substitution is easy and substitution is
viable, then this weakens your power.
(v) Threat of New Entry: Power is also affected by the ability of people to enter your
market. If it costs little in time or money to enter your market and compete
effectively, if there are few economies of scale in place, or if you have little
protection for your key technologies, then new competitors can quickly enter your
market and weaken your position. If you have strong and durable barriers to entry,
then you can preserve a favorable position and take fair advantage of it.
MICHAEL PORTER'S FIVE FORCES MODEL (SURF EXCEL)
New Entrants
The only new entrant in the detergent industry who has affected the sales and brand image
of Surf Excel is only Ariel, the counterpart introduced by Procter&Gamble in 1967 while Surf
Excel established itself in 1948. However, quite a few number of players have entered local
markets without much sales. A few may be named as below:
 Tide
 Rin
 Nirma
 Bonus
 Omo
 Brite
 Mr. White
 FAB

3. Suppliers
Unilevers distribution strategy has changed over time. Earlier wholesalers and large retailers
used to place orders directly to the company. The company salesmen used to collect these
orders and then deliver the goods to the concerned customers. This simple system was good
enough in the beginning. But then UL changed things in order to provide quality service to
its customers. They appointed one wholesaler in each market as a Registered Wholesaler.
This wholesaler was then the guy to whom all the salesmen went with the orders that they
have taken. He handed over the products to the salesmen who then distributed them to
customers. This strategy helped UL to reach more customers. As time went by and the
competition got tougher, UL had to make its distribution network leaner and meaner than
ever before. Also Surf Excel being a detergent powder is a FMCG. So UL had to make sure
that the retailers' shelves were replenished in time. To do that, they had depots all over the
country. These depots or warehouses stocked finished products and acted as buffers in case
of an increase in demand. Earlier the registered wholesalers used to get the goods direct
from the company. Now the company sent the goods to the depots from where the
Redistribution Stockiest got them. This made their distribution system a much more
efficient and well-oiled machine.
Buyers
The buyers of the products from Surf Excel are mainly the upper middle class and high class
families and individuals as their products are comparatively highly priced. However this does
not adversely affect the functioning or sales of the product due to its wonderful quality and
easy wash experience. It is seen that many individuals prefer using this since it helps finish
the task faster.
Substitutes
Substitutes are available for Surf Excel in the names of
 Ariel
 Tide
 Rin

4.  Nirma
 Bonus
 Omo
 Brite
 Mr. White
Competitors
As per recent survey, the existing competitors for Surf Excel in Pakistan, are as follows:
 Ariel: a global laundry detergent brand under the Procter & Gamble umbrella, has
firmly established itself as a household name in Pakistan. Known for its exceptional
stain-removing capabilities, Ariel has become synonymous with superior fabric care.
The brand offers a comprehensive product lineup, including powders, liquids, and
pods, designed to cater to various washing machine types and laundry needs. Ariel's
marketing campaigns in Pakistan have successfully highlighted its proficiency in
tackling stubborn stains, from oil and grease to grass marks, making it a preferred
choice for consumers seeking premium laundry solutions. Moreover, Ariel's
commitment to maintaining fabric quality and vibrant colors has solidified its
reputation as a reliable and trusted brand in the Pakistani market. Whether for
everyday laundry or handling challenging stains, Ariel stands as a top-tier option for
those who prioritize laundry excellence.
 Bonus: a well-recognized laundry detergent brand in Pakistan, holds a distinct
position in the market as an affordable and budget-friendly choice. The brand has
garnered a loyal following among cost-conscious consumers who seek effective
cleaning solutions without breaking the bank. Bonus offers a variety of laundry
detergents, primarily in powder and bar formats, providing satisfactory cleaning
performance for routine laundry needs. While it may not boast the advanced stain-
removing capabilities of premium brands like Ariel, Bonus compensates with its
competitive pricing and value for money. Its marketing campaigns often emphasize
affordability and practicality, resonating with consumers looking to optimize their
laundry expenses. Bonus serves as an attractive option for those who prioritize
budget considerations while still expecting dependable laundry results, making it a
well-suited choice for a wide range of households in Pakistan.