Gardenia Bakery Swot

SWOT Analysis

Strengths

1. Gardenia has built up a very strong brand in Malaysia.
2. Perceived superior quality products which are freshness and taste
3. Wide coverage and distribution, and top the line production with extensive of territorial the distributors could produced 6.000 loaves per day
4. Ability to make rapid expansion
5. Supported by a conglomerate with proven market success which is QAF Group
6. Growing flank product lines
7. Multi-awarded company, Gardenia has received so many achievements.
8. Everyone can get it easily from grocery shop, minimarket, supermarket and hypermarket.
9. Continuously introducing new product and keep bringing more choices to the customers.
10. Gardenia is involved in social work.

Weaknesses

1. Limited availability or penetration to lower-end market (sachet economy)
2. No stand-alone stores
3. Weak in its packing, which is not enough attractive
4. Lacks online services for its customers’ convenience.

Opportunities

1. Growing economy and rising middle class
2. Improvement on market coverage and distribution
3. Increase Awareness of Health and Fitness.
4. Increase Number of Working Youth.

Threats

1. Convergence of competitors
2. Bargaining power of retailers
3. Inflation and tariff
4. Global economic crisis
5. Future / potential competition from an Already Established Market Participant.

COMPANY'S STRATEGY

New users can be in the form of new customers. Gardenia Bakeries, wit hits sound financial position and affiliation, would allow it to either set up anew plant in Mindanao area to capture the undeserved area. Not only would it create jobs, this strategy would also allow Gardenia to minimize intermediaries, enabling better inventory and logistics control.Meanwhile, to capture non-users such as those who rely on rice, crackers,cereal, corn or any readily-available food, Gardenia should craft and organize   marketing efforts to create a desire for the products. Dedicated salesmen should be assigned on this particular project to facilitate feedback mechanism. One example of creating a desire is by engaging the services of celebrities which the target market can highly associate themselves with.For increased/more frequent usage, Gardenia can find creative ways on how to stretch use of its products, stepping out from its usual bread as sandwich or merienda image.To defend its market share from “cottage” bakeshops as well as the emerging franchise like Julie’s Bakeshop, Gardenia should further strengthen its Gardenia Pushcarts to enable improved penetration on grassroots level. This, or Gardenia, if it would like to maintain its current branding and market image, can establish a new company that would specifically cater the under served market, reminiscent of Jollibee’s Mang Pepe.On the other hand, behemoth conglomerates like San Miguel Group,Gokongwei Group, or similar group that has the financial capability to develop and distribute products to compete head-to-head with Gardenia should also be considered. Gardenia should be mindful of any business dealings that might prelude this to make pre-emptive counter-measure strategies. To protect its position in the market, Gardenia should reinforce market’s association with the product. Citing years of relationship since 1997 would send a message to the consumers of the continuing commitment of the company in ensuring quality food in every table, freshness in every bite. Years of uninterrupted dominance in market would give Gardenia the advantage over the new entrants.Finally, diversification of products could also be an alternative. Entering the beverage or bread spread industries, while risky, would serve as flankersto the core product line of Gardenia Bakeries.