Introduction The baking industry in Myanmar is those companies that focus on and manufacture baked goods. Baked goods consist of some type of bread but it can also include cakes, cookies, crackers and pastries just to name a few. Other foods may be baked like meats, vegetables and some pasta dishes, but for the purposes of this analysis we will be focusing on the “baked goods” that include breads, cakes etc. (Annie Doolittle, Ashlee Jones, Lisa Pope, Oksana Vorontsov, Jeffrey Wray, 2013)
Background of Angel Phoo' Bakery Angel Phoo’s bakery was opened in 2015 July 14 by a 19 year old patisserie Ma Eaint Phoo Phoo. She attended baking school in summer. 2015 January 27 she started as small home bakery. Angel Phoo' Bakery have 20 around
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The consumer knows it has a wide range of choices. The consumer based market has it hard in the market since the business has to focus on the market. They understand food products better and use this to shop around for the best product. As a result, the ability for a customer to switch cost is very low. Everything depends on the product quality. (Annie Doolittle, Ashlee Jones, Lisa Pope, Oksana Vorontsov, Jeffrey Wray, 2013)
Bargaining power of suppliers According to (Annie Doolittle, Ashlee Jones, Lisa Pope, Oksana Vorontsov, Jeffrey Wray, 2013)the bargaining power of the suppliers in the baked goods industry is low because of the nature of the product. The supplier is legally bound by government guidelines to uphold FDA standard. Steal panels used for the outer structure of the oven are very easy parts to supply. In other hand, some more elaborated parts such as electronic control systems or certain types of heating solutions can have a more limited number of suppliers.
PESTLE Analysis
Political
Tax is one of the legal and regulatory factors that affect Angel Phoo' Bakery. The government can also increase or reduce taxes to promote or control the economic growth. (phoo,
Understanding the number of competitors and their capabilities in a particular market is a key function of building strategy. If a company is competing against another company offering the same product or service, it faces limitation in regards to both supplier and buyer power. Customers will always tend to go to the place where they get the same product for a cheaper price, while supplier will tend to flock to places where the deal is considerably high. For CMG, a key differentiation in its competition within the fast food industry is designated I its ability to meet a one of a kind fast food experience where customers experience fine-dining similar to high0end hotels, but a low prices. CMG additionally differentiates totally with its rivals in the sense that they struggle to offer healthy and high-quality food that positively impacts the society.
According to Berg (1972) calculate losses due to the inefficiencies, demand that are statistically estimated and used in a discussion of market efficiency (p.33). The demand for low-calorie food can change if there is a change in consumer income, the pricing of competitor product and the price of goods such as complimentary microwave oven. This shift can happen because of consumer taste and preference.
Competitors in the grocery store industry must compete on many facets, including price and inventory, to obtain a competitive advantage. Many stores are following suite with Whole Foods and moving into the organic food markets. Whole Foods and Trader Joe’s are in the forefront of this market, but stores like Kroger, Walmart, and HarrisTeeter are adding organic aisles and increasing their natural product supply. Companies are also competing over variety of food. Many companies are attempting to amass a variety of products from a multitude of cultures and climates to enhance the consumer experience. Lastly, grocers compete on brand strength. Consumers often show allegiance to one particular store, so companies must generate a large base of loyal customers.
However, because of its demographic it was losing a high customer base because of its prices. The text book Chapter 10 emphasized the importance of pricing and creating profit. The investor Marcus Lemonis showed the owners how to evaluate demand and the price sensitivity of their products. He introduce product that could be brought in with lower price points that would compete with their competitor and still crate the high-end prestige the company wish to create. Taking advantage of the income statues of the company’s customer with in their demographic. One major problem the company had was the price point of a bag of dog food was around $100 per bag that was a high price for the consumers within the area. By bring in a brand that had high quality and prestige at a price point of $20 allowed for a greater customer
Due to the various options of distribution channels their prices vary. Consumers take that into consideration when purchasing their products.
For recent years, Chipotle has already raised prices for several times to make up the expected costs. The competitors who use conventional raised meat can even achieve half price of the same products of Chipotle. Cheaper prices do provide a great incentive for customers to purchase, however, the overall quality and taste of Chipotle still has competitive advantages. The idea of food with integrity differentiated Chipotle from other competitors. In the meantime, Chipotle already got the brand identification building up high switching costs.
Local stores may not stock healthy options, such as fresh fruit or whole grains, due to lower profit, a shorter shelf life, a shortage of storage space, or a seemingly obvious lack of interest. By comparison, a consistent menu of food options available at a nationwide chain of restaurants gives the consumer a standard by which all other food choices are compared. Minor logistic and supply issues aside, when a consumer enters a McDonald’s, they will always be able to order and receive a cheeseburger, whereas a grocery store may be out of strawberries or kale for the week, or may only have a more expensive brand of tomatoes
Business growth general is assumed to be good; bigger is assumed to be better (Hess, 2011), but if the proper planning is not in place it can lead to a business failure. Beginning a business based on something she loved, and needed in her life Susan Feller made the brave decision to build a successful business by baking and selling gluten-free cakes and desserts. After her retirement she focused on her dream and solving her own issue, finding food safe and healthy to eat for those, like herself, with Celiac disease and gluten allergies, but they also had to be delicious. Feller had some tough decisions to make as a small business owner, would she be able to keep up with the demand, how can she grow her business and what if she decided she had had enough and wanted to close the business? These are all decisions any business owner have to face at one point or another.
Ranging from a variety of topics including laissez-faire capitalism, competition, and opportunity cost. The one thing I would like to point out in this article which I believe has the strongest connections to what we have been learning was supply and demand interactions. We have learned the relationships between the supply of a product and the demand from a consumer. Panera Bread’s CEO, Ron Shaich recalls an instance of supply and demand from consumer that took place in 2004. Even though not popular by other restaurants or even consumers, Panera was the first company to offer antibiotic- free chicken. At the time the cost for antibiotic-free chicken was extremely high, but Panera deemed it important to have it serve as a staple to their projected goal of 100% clean food. With time, there was an increase with consumers for antibiotic-free chicken, the supply went up and the price came down for Panera. At the forefront of this movement, Panera paved the route for companies to take a strong lead with their initiatives and to be mindful of supply/demand
The use of taxes is one of the government's favorite ways to make its presence known in the economy. While this method seems blatantly obvious, many of the ways the government uses the money collected by taxation is not. Some of the money it takes is used to fund other programs designed to "protect" consumers and to "create" jobs. Be...
For commodity goods, consumers are more inelastic to price changes. As commodities are at affordable price, the price differences are rather small. Therefore, lowest price is not a main concern for most consumers.
The goods and services provided by each seller are differentiated by cuisine, skill, ingredients used and more. Each seller sets their prices according to their production costs with little regard for other competitors. There is high access to information, such as prices, menus and reviews, but limited by the fact that the value can only be determined after the experience.
Threat of substitutes in market as best quality is not always a priority for some customers as they are price sensitive.
My family and I often visit family in Chicago, and when we do, we always go to the Oak Mill Bakery. Every time we have gone we are greeted with spectacular customer service and mouthwatering treats. The bakery specialty is European style baked goods and has been in business since 1986 (Oak Mill Bakery, n.d.). Oak Mill strives to use all natural ingredients, which is one on of the reasons my family makes an effort to visit every time we are in town. The bakery serves cakes, cookies, cupcakes in many different styles. As noted before, they have a European twist to all their sweets, which makes them mouthwatering and unforgettable.
Every consumer has a unique way of measuring benefits versus costs and will sometimes pay for higher quality items and other times buy the low costs items, depending on which has the highest value to them.