The competitors will provide a basis for improving the quality of products provided by the company. Suppliers and Intermediaries James Baxter Bakery will require suppliers of different products including baking equipment, baking products, and supplier of human resources required by the company.
Economies of scale are beneficial, but are not required for industry success. Therefore, this section covers the components of the microenvironment, the suppliers, intermediaries, publics, and competitors that will determine the performance of James Baxter Bakery Dopson and Hayes, Substitutes Many substitutes exist for bakery products.
This causes the price of the cake to be expensive because of higher raw material costs. The components of the external environment affect Bakery industry analysis essay, implementation, monitoring, and outcome of a designed strategy in an organization.
They also promote unhealthy competition between bakery companies. Other companies outside Adelaide will provide indirect competition to the company. However, the low class consumers will promote the consumption of the cheap to average products produced by the company. Therefore, their buying behavior will affect the performance and productivity of the company Ojugo, Demographic factors like the population size will influence the buying of the products provided by the company.
The intermediary suppliers will help the company in marketing its products. The customers from the top class will promote the consumption of expensive baked products while the middle class consumers will increase the consumption of the average to expensive products.
The industry is characterized by many small bakeries, but there has been a recent trend towards consolidation and economies of scale. The public will influence consumer perception of the products of the James Baxter Bakery Fratamico, Annous, and Gunther, Suppliers Suppliers do not have much negotiating power in the bakery business due to the well developed markets for their products and the commoditized nature of what they are selling.
Therefore, this section will describe some of the macro-environmental factors that will affect the performance of the company Ionescu-Somers and Steger, This will cause the profits are small because they want to keep putting the product together with competitors from the same industry.
This decreases the productivity and consumer supply of the company. The suppliers will provide the necessary inputs, raw materials, and services to the company. Natural factors, including floods, legal factors like legislation, and technological factors such as the adoption of new technology will influence the overall performance and productivity of the company Fratamico, Annous, and Gunther, The economic recession will affect the stability of the company while social factors like social classes will affect the consumer purchasing power.
The environment does not have a full control over the business, and the business influences it. As a result, buyers are able to command low prices and volume discounts.
It involves looking at internal competition, barriers to entry, the profit-appropriating power of both buyers and sellers, as well as substitutes to the goods produced. This includes the consumers from all the social classes: Buyers Buyers of the bakery industry products, such as supermarkets, grocery stores, hotel chains and convenience stores, are able to appropriate much of the industry profit u to the large number of small bakeries that are all wing to find outlets for their products.
Publics The company will target all populations in the society. Barriers to Entry Barriers to entry in this industry are low.
Macro-environmental factors include demographic, economic, technological, political, legal, social, and natural factors. Factors unique to an individual Tastes, Preferences, Attitude, Lifestyles and behaviors Psychological Factors that attract the consumer by making them feel attracted to the product Motivation Perception and learning Microenvironment Cousins, Foskett, and Pennington defined microenvironment as the environment that is mostly related to the firm.
These companies provide closely related products and services including high quality foods and coffee and pie to its consumers. Bakeries rely upon price and convenience to keep individuals switching to a substitute or baking what they need at home.
As a result, small businesses can enter the industry with a relatively small amount of capital. Applied to the bakery industry it shows an average net profit that typically does not cover the cost of capital due to low barriers to entry, ease of production and ease of access to ingredients.
These companies will provide direct competition to the company. These companies have excellent positioning strategies. As such, the James Baxter Company will have to invest most of its resources to achieve the desired positioning in the market McDonald and Meldrum, Porter’s Five Forces analysis is useful when trying to understand the competitive environment facing a backery industry.
It involves looking at internal competition, barriers to entry, the profit-appropriating power of both buyers and sellers, as well as substitutes to the goods produced.
Around bakers have joined this initiative driven by three bakery associations – Philippine Baking Industry Group (PhilBaking), Federation of Philippine Bakers Association and the Filipino-Chinese Bakers and supported by Department of Trade and Industry and Bureau of Food and Drug. Essay Competition in the Bakery Industry and 90,+ more term papers written by professionals and your peers.
Home; Custom Writing Therefore, it is important for new entrants into the market such as James Baxter bakery to conduct market analysis to ensure its success and performance in the competitive marketplace full of established bakery.
An Analysis of Yuxi Bakery Industry Professor, Ed Bukszar, Ph.D. Yee Chen September 27, Introduction The Chinese bakery industry, being in the growth period of its life cycle, has been developing at a high speed these years.
Industry Analysis Example (Porter’s Five Forces and Complementors) Wal-Mart Here is a very brief example of an Industry Analysis for the Cases using Wal-Mart, specifically Wal-Mart’s competition in the consumer retail industry and.
Bakery Industry Analysis Porters Essay. Applied to the bakery industry it shows an average net profit that typically does not cover the cost of capital due to low barriers to entry, ease of production and ease of access to ingredients.Download