They are willing to try anything. The truth is that they shop at multiple places before making a final decision. .

             Threat of Substitute Products and Services - Emerging.

             The baking industry in America is facing many changes due to a changing market and changing consumer needs. Obesity is a real issue facing Americans but this does stop companies like Sara Lee from selling baked goods. It just means changing the product to meet customer demand. These changes could be seen as threats. Only diversification product will lead to success at this point. The future of these companies depends on presentation of different formats and product specialty to keep the customer's attention. These niche stores will meet consumer demand of specific needs. .

             Supplier Bargaining Power--low.

             The bargaining power of a company in the baked goods industry is relatively low because of the nature of the product. The company is legally bound by government guidelines to uphold FDA standards. Still this puts them in a role of great influence. Because today's consumer is well educated in their food choices, in many ways the food or baker in this scenario is seen as an expert and the consumer respects the role. This affects how the consumer spends their money on additional products. As a result, the companies like Sara Lee have had to adopt and aggressive attitude with suppliers or partners so they can provide diverse products to the consumer. The supplier or partner really has no room to bargain either due to increased competition on the wholesale market and media behavior being emotional in nature. One's health is a serious matter. This tension creates stress, making it easier for the company to switch suppliers to meet the needs of the customer. They are also educated and looking for a company that can go the extra mile to please them. In this respect, Sara Lee holds the power to name the price according to their current partnerships with suppliers.