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Swot Analysis

Decent Essays

Antillean Baking Company produces and sells a variety of baked products such as bread, biscuits and buns on the local market. In recent years it has lost market share and management has decided to do a SWOT Analysis of the following areas-: (1) Customers, (2) Suppliers, (3) Competitors and (4) Intermediaries.
(a) What does the term SWOT Analysis mean? (4 marks)
(b) Identify and outline the impact on the company’s operations of the TWO trends in EACH of the four areas identified above. (21 marks)

(a) In order to develop a marketing plan or strategy which can identify preferred and likely directions, the firm can conduct a SWOT Analysis which is a general and quick examination of a business’s current position. The SWOT Analysis …show more content…

Furthermore, If Antillean receives raw materials late or faulty materials, the products may be defective or behind production targets. If the firm produces faulty products it may earn a bad reputation and loose customers. Also, if the firm is not able to meet orders on time it may loose customers this, reducing market share. Discounts on purchases are a promotional strategy many firms use and may well be a trend developed by Antillean’s suppliers. If the suppliers give discounts for bulk purchases the larger firms may benefit since they may have the capital to purchase the bulk stock. This may allow these firms to have a competitive advantage over Antillean. There firms may be able to lower prices due to the decrease in the cost of production. The firm may be able to attract Antillean’s customers through the lower prices. This strategy will decrease Antillean’s market share. However, it must be noted that once Antillean has the capital to purchase the bulk stock they may gain the same advantage as the larger firms. The food industry is one of the most competitive industries as businessmen are aware of the fact that food is a necessity and there is always a demand for it. The competitiveness of this industry may have caused business men to become more innovative as a means of competing effectively. Becoming more innovative in the bread and pastries industry may mean opening shops and restaurants selling only the firm’s products. For

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