Keep Well Bakery: The Concept Of Competitive Challenges In The Bakery

Competition

The concept of competitive strength requires the competitor analysis. The intense business competition typically leads to the direct competitors and indirect competitors.

Direct competitors are the only type of business that sells products and services aimed at the same group. The new competitors, healthy bakery business as new competitors enter the market is not difficult due to the cost of the operation is not very high and the switching cost is low. However, the key factor is that entry barriers into this market is skillful in making bakery, how to make them fit with consumers’ taste and the choice of low fat materials. Although the competitors will be able to compete easily, but due to difficulties in this business, out of business

The products do not adhere to the season sometimes it has shortage of goods and it causes bakery ingredients have to be adapted to higher raw material prices. Then Keep Well Bakery has the ways to modify the raw product in the current environment and find alternative raw materials. If it cannot replace, then adapting to higher priced products that sell in the same price range, with notice the consumers about price adjustments.

The bargaining power of buyers was high because the current technological advances allow consumers to get information about healthy bakery and consumers have many choices. Then they must try to maintain the quality of the products to be delicious, attract more customers and create new products to the market and need to adjust to the trends of the market and apply products to the stores.

Metro area lease agreements are short-term contracts and have the opportunity to not renew the lease. If this happens, it will affect business significantly. Therefore, Keep Well Bakery prepared a plan for the distribution in the area other than the area around the skytrain such as office

The principle source of funding is appropriate. Using the proceeds to invest in short-term assets and use the proceeds for long-term investments in fixed assets and determining the appropriate capital structure. Keep Well Bakery loans long-term funds from SME which is expected to be repaid within five years and the project period is the five-year term, the payback period of the project is within two years and the project is expected to pay back 170 percent, the plan is as