Essay about Food Industry Swot Analysis

1297 WordsJun 8, 20116 Pages
1. Strengths, Weaknesses, Opportunities and Threats STRENGTHS • Some expenditure on food is essential for everyone and is considered an established part of the household budget. • Many food products are deemed necessities and are unlikely to be harshly affected by any economic downturn. It is discretionary spending that is usually badly hit in a recession, which is, therefore, more likely to harm sales of 'luxury' foods. • The UK has a well-established supply structure, in terms of both its production base — for meat, dairy products, fresh and processed vegetables, bakery products and fish, in particular — and its network of retail outlets — mainly in the form of major multiples. • Following a period of extensive rationalisation and…show more content…
• Overcapacity in some sectors of the food-processing industry is serving to increase overhead costs per unit of output, raise prices and make them less competitive or, where prices remain the same, reduce profit margins. • Some sectors, such as frozen foods, bread and bacon, have suffered from poor merchandising and category management in supermarkets, which has done little to maintain consumer interest in them. • Food health scares are regularly exaggerated by the media. This can cause a knee-jerk reaction by consumers who do not have accurate, representative information on the matter in question, and lead to reduced consumer spending. • The strong pound makes UK food exports less competitive by making them more expensive to foreign buyers. This is particularly harmful to sectors of the UK industry where exports have traditionally accounted for a high proportion of sales, such as beef. OPPORTUNITIES • The continued trend towards snacking and the further decline in formal meal occasions will encourage growth in sales of snacks and light meals across the food industry. • As the number of working women and single-person households continue to increase, the demand for a broader range of convenience foods will grow. • There remains potential
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