INDUSTRY ANALYSIS

COMPETITION
Given the high demand to baked products, it is highly probable that there are other entities offering
the same products in the vicinity where the business is located. Hence, there is high level of rivalry
among existing competitors. Consequently, Sagun’s bakeshop is located inside the public market which
there is around ten identified competitors. One of them is already in its 23 years of operation, and has
already established a wide group of loyal customers.

NEW ENTRANTS

Bakery is an attractive business to new entrants, but with low level of barriers since possible entrants
can penetrate the market easily. There are few product differentiation, loose government policy, and
few switching costs. For the past years, we have witnessed how bakery store owners penetrate far flung
areas and barrios, since putting-up a bakery store requires a minimal capital requirement. There are
apparent growing numbers of either small to medium entrants since there is an easy access to different
distribution channels. Just two years ago, Bakers Percent, an established bakery business with
cumulative experience, already offers baked products for Tuamuinians.

SUPPLIERS

There are few suppliers who supplies raw ingredients in our town, hence suppliers have more
bargaining power than business owners. Alongside, we only have dentified three suppliers who
dominantly supply for the bakeries established in Tumauini. Among of them are Evergood, Hidalgo, and
Cinco. These suppliers have scheduled deliveries, which usually every Sunday. On the other hand, these
suppliers tend to increase their prices due to lacking number of suppliers available and businesses have
no ability to substitute.

CUSTOMERS

Customers have more bargaining power because they have more alternative options for products and
services. They have fair amount of bargaining power to choose where they will buy and it is according to
what they want the most.

SUBSTITUTES

Sagun’s bakeshop has high chance to be substituted because of increased competition and its
convenience. Consumable commodities like bread are available to almost every store near to
consumers. Baked goods in general, are not one of a kind product, hence, its substitution to other
similar goods are observable.

SWOT ANALYSIS

STRENGTHS:

 The bakery sourced its ingredients from direct wholesaler, which is less costly because of the
availability of trade discounts.
 The bakery has already established a good business image to its patrons and loyal consumers.
  The bakery has food establishment partners which the bakery supplies bread.
 The bakery offers wide range of baked products.

WEAKNESSES:

 Little to no marketing.
 Production is not accurately estimated - how much bread will be produced in a day so often
many remain unsold.
 The bakery only sells baked goods with 3 to 4 days of shelf life.

OPPORTUNITIES:

 Expand its market reach by offering made-to-order cakes and pastries.

 Penetrate the online market.
 Provide dine-in option for the customers, by setting-up tables and chairs for them.
 Supply packed baked goods to different stores (i.e. sari-sari stores) as resellers or consignee.
 Adapting new versions of recipe.

THREATS:

 The bakery struggles to produce bulk amount of baked goods due to fluctuating price of its basic
ingredients.
 Growing number of entrants.
 Some of its existing competitors have more strategic location than the bakery.

COMPETITORS ANALYSIS

Undeniably, bakery business is a good prospect for emerging entrants because baked goods already
became part of every Filipino banquet, whether be it as breakfast or snack. As competitive environment
persists in this industry it is but important to analyze each business’s competitive advantage. Also, it is
important to identify the things that set us apart from the stiff competition.

Different stores have their authentic taste of bread. And some have their own innovative recipes and
best sellers. Some of them also offer the lowest price range possible; while the others offer the highest
price range but still able to secure customer preference. Few offers dine in option in which is appealing
to those customers who love to hang out. Since baked can be perfectly pared with coffee, some
businesses expand their business by offering coffee drinks. Most bakery stores are family owned and
some are franchise.

Some of the bakeries are convenience wise and some already establish their branches to other
barangays and food courts. There are also stores that are open for 24/7 and some are open as early as
4AM to serve those customers who like baked goods for breakfast.

Most of the bakery stores have little to no marketing. Some utilize websites and online messaging to
attract customers and to create internal bonding and connections between the stores and the
customers. Also, few of the stores use social media platforms in advertising their products.
MEMBERS:

Ancheta, Juanito Jor R.

Angel, Myiel C.

Aquino, Abe Q.

Baligod, Bernadeth

Bucalen, Eunice G.

Pagulayan, Sophia C.

Rivera, Glenziel D.

Tesalona, Frenz Leanne T.

Ugaddan, Geraldo Jr. T.

Verbo, Reamay N.