lumes experience growth with varying degree. More over this period dominated with lower Consumer Prices Index (CPI), which resulted in rising real earnings or purchasing power of consumers. On the other hand consumer credit increased by 8.6%, which driving sales growth. Second phase defined between August 2008 and May 2013, where volume of retail sales fluctuated between periods of contraction and expansion, which partly explained by the economic climate when consumer credit reduced by 24.8%. Moreover, earnings fell in real terms during this period.

The third phase started in June 2013, this phase defined by growth in volume despite earnings growing at a slower rate than CPI until September 2014. From the month of June 2013 to June 2016, consumer credit increase by 18.8%. Between June 2013 and July 2016, the price level (shown by the implied deflator) fell by 5.1%, coinciding with 13.9% growth in the volume of retail food sales over this period. In addition, this increment of spending has been in line with decrease of savings ratio, from 8.6% for the year 2008 6.5% from Quarter 1 (Jan to Mar) of the year 2013. Overall, despite such trends of difficulties in the economic performance, the extent of effect during this phase is small because demand of food is income-inelastic.

1.3 Food Industry Porter’s Five Forces Analysis

Porter’s five forces analysis is a framework that attempts to analyse level of competition within food industry and business strategy development by considering Competition among firms operating in the food industry, threat of new firm to enter the food Industry, threat of substitutes, bargaining power of buyers and bargaining power of suppliers. These factors determine the capacity for a Hilton food Group to outperform in the industry of specialization.

1.3.1 Competition among Firm Operating in the Food Industry

Competition among firms operating in food production and processing is high. To survive and remain competitive, it is critical to attract and retain customers for further development. Hilton Food Group has a very strong position in the food production and processing industry but major rivals fighting continuously to get on to each other are Cranswick and Devron Plc.

1.3.2 Threat of New Firm to Enter the Food Industry