Table of Contents

1.0 Executive Summary 3

2.0 Introduction 4
3.0 Report Objective 4
4.0 Business Portfolio 4
5.0 External Analysis 5
5.1.1 Political Factors 5
5.1.2 Economic Factors 6
5.1.3 Social Factors 6
5.1.4 Technological Factors 6
5.1.5 Environmental and Legal Factors 6
Strategic Report: 5.2 Industry Analysis 7

Greggs Plc 6.0 Internal Analysis 9

6.1 Resources and capabilities 10
7.0 Strategic Position and Choices of the Company 11
8.0 Recommendations 12
9.0 Implementation of Strategy 12
10.0 Appendices 15
Appendix 1. Business Model Canvas
Word Count: 3298
Appendix 2. Applied PESTEL Analysis
Appendix 3. Competitor Analysis
Appendix 4. VRIO Table and Analysis
Appendix 5. TOWS Strategic Alternatives Matrix
Appendix 6. BCG Matrix and Analysis
Appendix 7. Porters Generic Strategies Framework
Appendix 8. Porters Competitive 5 Forces Framework
11.0 Reference List 26

2
1.0 Executive Summary
Greggs Plc transitioned from a high-street baker to compete in the food-on-the-go market
following Roger Whiteside’s appointed as Chief Executive in 2013 (Greggs 2020b). Greggs
now offers a diverse product range to a UK mass-market worth £21.7bn (Devlin 2020).
Greggs has 2,050 stores across the UK (Lock 2020a) and employs over 25,000 staff (Greggs
2020g). Greggs made a pre-tax profit of £108.3 million in 2019, a 31% increase compared to
the year prior (Jahshan 2020).
By conducting external analysis, in the macro-environment, it is evident that the effects of
Covid-19 poses threats to Greggs in copious ways: a government-imposed lockdown caused
Greggs stores to close nationwide, resulting in a pre-tax loss of 65.2m (Hancock 2020).
Covid has also affected people’s social behaviours, causing a reduction in footfall in high
street areas of up to 89% (Sabanoglu 2020). As a high proportion of stores are located in high
street areas, the threat to Greggs is evident. The pandemic has also served opportunities to
Greggs, as demand for home delivery and click and collect services have seen a huge
increase of 39% (BeamBox). Greggs has recently set up click and collect and partnered with
Just Eat food delivery services, taking advantage of this increase in demand.
In 2019 Greggs created a media frenzy with the launch of its vegan sausage roll, which saw a
total revenue surge of 7.2% (Hancock 2019). The number of vegans and health-conscious
individuals in the UK is on the rise (Jones 2020), putting Greggs in a good place to use its
popularity to expand its vegan and balanced choice ranges.
Greggs overcame high levels of market rivalry by becoming a cost leader. By owning its
own supply chain operations, it has been able to keep costs as low as possible whilst
producing respectable quality products. Its size also means it can benefit from economies of
scale when purchasing from suppliers; this is helped by low supplier power in the industry.
By implementing the above, Greggs have differentiated itself from competitors to find a gap
in a highly competitive market. However, by centralising operations, Greggs leaves itself at
risk of operational failure due to potential technical issues which could lead to data breaches
or disruption to operations (Annual Reports 2020).
3 4
From this analysis, three strategic recommendations have been made:
. Continue to develop the product range.
. Continue to invest in supply chain operations.
. Actively search for new Strategic Partnerships.
In order for the successful implementation of these recommendations, an EVR convergence
framework was deployed.
2.0 Introduction
Greggs Plc is a bakery founded in 1939 by John Gregg, since then it has come a long way, and
is now the largest bakery chain and a household name known across the UK, with over 2,050
stores nationally (Lock 2020a). Greggs is most well-known for its sausage rolls in which it
sells over 1.5million per week in the UK (Hills 2019). Greggs also offer a large range of food-
on-the-go options and competes against some of the most well-known global brands in the
food-on-the-go market see (Appendix 3) for a view of competitor analysis. For a holistic
overview of Greggs, a business canvas was deployed (Appendix 1).
3.0 Report Objective
This report aims to provide an implementation framework for recommendations of strategic
choices made as a result of the analysis of the current strategic position of Greggs. In order to
evaluate Gregg’s position, a range of analytical tools will be used to assess the internal and
external environment in which Greggs operates in; this will help to understand both
opportunities and threats from the macro-environment as well as comprehend characteristic
competences built on capabilities and resources that differentiate Greggs from its competitors.
This will highlight their competitive advantages and disadvantages.
4.0 Business Portfolio
Greggs has seen a dramatic increase in sales revenue in recent years; much of this can be
credited to Roger Whiteside, who was appointed Chief Executive in 2013 (Greggs 2020b).
This growth can be displayed in Figure 1.

Figure 1: Greggs Sales Revenue 2006-2019
Source: (Lock 2020b)
Figure 1 shows the growth of Greggs, and most notably the huge increase in sales revenue in
2019 of 13.5%. To achieve this, Roger Whiteside has focused on diversifying the product range
by moving into the food-on-the-go industry and competing with the likes of McDonald’s and
Costa (Hobbs 2017). Greggs has undertaken strategic partnerships to grow its brand, for
example partnering with Iceland, Asda and most recently Just Eat delivery services.
5.0 External Analysis
In order to evaluate the external opportunities and threats, and also analyse the macro
environment, a PESTEL framework was used (Appendix 2) for a wider breadth of examples
of both opportunities and threats facing Greggs.
5.1.1 Political Factors
For Greggs, there are numerous political concerns, one being Brexit. As the deal has not yet
been finalised, it leaves great uncertainty. A disorderly exit may have effects on Greggs supply
chains, tariffs, exchange rates and effect consumer demand (World Coffee Portal 2019). This
may give rise to increased costs. Government enforced lockdowns due to the coronavirus
pandemic have caused an array of problems for Greggs as all stores have had to close down in
the UK. This resulted in Greggs having a pre-tax loss of 65.2m and led to Greggs having to
borrow over 150m to cover costs (Hancock 2020) With the future of Covid-19 uncertain; this
is a big threat for Greggs.
5 6
5.1.2 Economic Factors
Numerous economic factors effect Greggs, the most pressing are ones caused by Covid-19.
The unemployment rate is forecast to increase, with a prediction of 9% in 2021 (Howes 2020).
Greggs has already announced 820 job losses in November (Guardian 2020). The impact of
coronavirus has caused a 28% reduction in income across the UK (Bank of England 2020),
although this may seem like a disadvantage, it can be seen as an opportunity for Greggs as a
cost leader and renown for cheap products. Greggs products can be classed as inferior goods;
inferior goods rise in quantity demanded when average income is reduced (Kenton 2019).
5.1.3 Social Factors
A social threat for Greggs is that in general people avoid busy areas due to the coronavirus
pandemic. Footfall in retail locations in the UK has seen a sharp decreased, with a decline of
up to 89.9% in April (Sabanoglu 2020). Even post lockdown it has not returned to what it once
was, this is worrying for Greggs as a high proportion of shops are located in retail areas. On
the contrary, an opportunity for Greggs is the apparent rise in Veganism. There has been a huge
increase in the number of vegans in the UK; 150,000 in 2006, to 600,000 in 2018 (Jones 2020).
Greggs vegan sausage roll has seen great popularity among vegans and looks to expand its
vegan range to match the demand of the growing vegan market (Smithers 2020).
5.1.4 Technological Factors
As Greggs is moving towards a centralised production, with a larger reliance on technology,
the impact of any operational failure on shops and customers increases, Greggs is also exposed
to external threats such as hackers and viruses, which can lead to data breach or disruptions to
operations (Annual Reports 2020). Greggs has partnered with Just Eat, a food delivery platform
which is the most popular provider in the UK (BeamBox 2020). By going into food delivery,
it can extend its reach and match the increase in demand for home delivery, which has seen an
increase in 39% in the last 3 years (BeamBox 2020).
5.1.5 Environmental and Legal Factors
Greggs has made a “Greggs Pledge” to actively do better for the environment (Annual Reports
2020). Greggs only use plastic where necessary, and removed 27 tonnes from operation
(Greggs 2020e).
Large financial penalisations can be put on businesses that breach food safety or health and
safety legislation; this could be seen as a legal threat to the company. Greggs has a large number
of stores and serves a huge number of customers each day; this means it can be exposed to
incidents which fall below the expected standards and could lead to prosecution (Annual
Reports 2020). An opportunity for Greggs is that UK businesses are far less regulated than
many other countries that it’s direct competitors operate in, so does not have to deal with this
extra red tape (NAO 2017).
5.2 Industry analysis
Frameworks used to analyse the industry in which a business is positioned in is the Competitor
Analysis Model and Porters Competitive Five Forces Framework. For a wider view of each of
these, see (Appendix 3 and 8). These frameworks give insight into the industry’s attractiveness
and potential flaws, as well as exposing possible gaps within the industry.
Figure 2: Porter’s five forces radar plot
Source: (Johnson et al 2017) Figure 3: Competitor Perceptual Map
Figure 1 summarises the findings of (appendix 8) and Figure 2 summarises the findings of
(Appendix 3). To point to some of the main factors, market rivalry is high; this can be shown
through that fact that the top 10 key payers own 33.6% of market share between them (Witts
2020) showing strong competition. The threat of substitutes is classified as medium as the
psychological cost of switching is minimum and substitute products may offer similar or
better quality standards (Henry 2018), this can be seen in figure 2, that shows competitors
with similar or higher quality standards to that of Greggs. Although, Greggs do have strong
brand and customer loyalty, meaning people are less likely to use substitutes, this is
7 8
strengthened by the reward app (Greggs 2020f). This supported by (Appendix 3) which
reflects their revenue of £1167.9m in 2019 (Greggs 2020a), which is larger than the likes of
Subway, Pret a Manger and Starbucks in the UK. Supplier power is low, as there is a large
number of suppliers in the market. Greggs purchase goods from over 500 suppliers meaning
it is not overly reliant on a specific supplier (Greggs 2020c). Greggs also owns its supply
chain, so manufacture its own products giving it significant power; this also means it can
produce goods at lower prices whilst still being able to maintain a respectable quality of food.
Customer power is classed as medium, due to the fact there is a large number of customers in
the industry, giving them lower power. However, they have low switching costs, and as there
are many other alternatives, often nearby Greggs shops. Greggs products are also
differentiated, with a mix of low prices, and medium quality, they have found a gap in the
market, shown in figure 2, this differentiation gives customers less power. Finally, the threat
of new entrants is low as Greggs, and competitors experience large economies of scale due to
their sheer size, on average the companies in figure 2 have 1230 stores each in the UK alone,
showing how hard it can be to grow to this size, Greggs has 2,050 stores (Lock 2019a), only
Costa and Subway have more stores in the UK than them. See (Appendix 3) for more info on
stores. Overall for Greggs, the market is mainly attractive apart from a large amount of
market rivalry.
6.0 Internal Analysis
To analyse the strengths and potential gaps in Greggs product range, a Boston Consultant
Group (BCG) Matrix was employed. Visit (Appendix 6) for more detailed analysis.
Figure 4: BCG Matrix
Source: (Boston Consulting Group 2020)
As displayed in figure 4; a cash cow for Greggs is its baked goods, it is what Greggs is known
for and a product it has always supplied. Greggs sells up to 1.5million sausage rolls a week
(Croce 2019) and won sausage roll of the year (Annual Reports 2020). This is a significant
revenue stream for Greggs and an area that doesn’t need much more investment as these are
regarded as classics. Another cash cow is hot drinks, Greggs sell up to 1 million cups of
Fairtrade coffee per week. A flat white sell for £1.75, which is 40p cheaper than rival Pret a
Manger and according to critics, just as tasty (Cumming 2016). Greggs also sells more coffee’s
than Starbucks in the UK (Saunders 2019). This is a clear cash cow for Greggs. The festive
range is a rising star; it gains huge media attention when released every November, and is
hugely anticipated by customers (Nisbet 2020). Another rising star is the vegan range when the
9 10
vegan sausage roll was introduced, it caused a media frenzy, leading to an increase in total
revenue by 7.2% in 2019 (Hancock 2019). The number of vegans in the UK is on the rise (Jones
2020), and with a growing vegan range, and more new products in the works, this is a huge
growth area for Greggs. A question mark to highlight would be the balanced choice menu,
which is a range of under 400 calorie options (Greggs 2020e). The range has not seen huge
traction but is has the opportunity for huge growth, as the UK is pivoting towards healthier
food options (Wunsch 2020). By continuing to invest in this range, more health-conscious
customers will favour Greggs over competitors and turn this range into a rising star.
6.1 Resources and Capabilities
An in-depth VRIO Table with analysis has been implemented in (Appendix 4) to analyse if
Greggs has any sustained competitive advantages and to look into where it should invest to
keep its advantages. In figure 3, some key capabilities have been taken from the table and
highlighted.
Figure 5: VRIO Table
Figure 5: VRIO Table
Figure 5 shows that by owning its supply chain is valuable to Greggs, as it can produce a higher
quantity and quality of goods, at more efficient and competitive prices (Annual Reports 2020).
Not many of Gregg’s competition own their own supply chain, with the exception of Pret a
Manger and McDonalds, this gives Greggs a temporary competitive advantage over the
competition and is an area in which they should look to invest more in order to stay a cost
leader in the market. An important sustained competitive advantage for Greggs is its strong
brand reputation. Greggs is considered a national treasure in the UK which makes it unique in
brand reputation when compared with its competitors; in 2019 Greggs won both Brand of the
year, and Britain’s most admired company (Annual Reports 2020). Moving onto the Vegan
range, since the release of the Vegan sausage roll, Greggs gained significant media attention
that will be hard for other competitors to match. The year of the launch saw a sales increase of
7.2% (Sembhy 2019). Since then, Greggs has continued to invest in its vegan range to match
the demand of the growing vegan market; it is clear that this is an area in which Greggs should
continue to invest in.
7.0 Strategic position and choices of the company
Both the internal and external analysis has been able to paint a picture as to the strategic
position of Greggs, to support this a TOWS analysis has been employed to synthesise both the
external and internal analysis (Appendix 5).
A Porters Generic Strategies framework (appendix 7) was used to identify potential niches in
which Greggs can gain competitive advantages and help to analyse the position of the
company, it shows that Greggs business strategy has distinctive competencies as a cost leader.
By continually investing in its supply chain it will be able to increase production efficiencies
and quality further, whilst leveraging further economies of scale (Dines 2019). Greggs strategic
direction is to continue to increase the number of stores is in place with a target of 2,500 stores
by 2025 (Davey 2020) however, due to the impact of coronavirus it is likely to impact this
target. Greggs also plans to continue investing in diversifying its menu with both healthy and
vegan options, which it has seen success, thus far, exhibited in profits generated since the
implementation of a diversified menu (Locke 2020b). A higher differentiation focus will afford
the business advantages over competitors. In terms of its strategy methods, it will continue to
look for partnerships with businesses such as Iceland, Asda and more recently, its partnership
with Just Eat. By doing this, it can increase market share and attract new customers. With the
consideration of TOWS Matrix and Porters Generic Strategies (Appendix 5 and 7) along with
analysis throughout this report has assisted in formulating recommendations for Greggs future.
11
8.0 Recommendations
Continue to develop product range: The implementation of product ranges has been
extremely successful for Greggs as shown in the BCG Matrix (Appendix 6). In particular,
Greggs should work to develop its vegan range further as this is an area in which it has had
huge success. As discussed, the Vegan sausage roll launch caused a surge in popularity and
saw a 7.2% increase in sales revenue in 2019 (Hancock 2019). (Appendix 6) Also discussed
the popularity of the festive range (Nisbet 2020), a recommendation would be to implement
seasonal ranges all year round, instead of just having a festive range, this may result in
increased demand all year round, instead of just over the Christmas period.
Continue to Invest in supply chain operations: As discussed in the VRIO table analysis
(Appendix 4), Greggs supply chain means it can produce high-quality goods at more efficient
competitive prices (Annual Reports 2020). Meaning it can utilise economies of scale, and
experience low threat from suppliers (Appendix 8). This centralised approach puts a heavy
reliance on technology which can potentially be exposed to external threats such as hackers
(Appendix 2). By investing in both increasing supply chain as well as upgrading technology
to make sure there are contingency plans in place for technological failure, it means there will
be less risk of disruption to operations, and Greggs can continue to be a cost leader within the
market without disruption.
Actively search for new Strategic Partnerships: Greggs has already partnered with Just
Eat, Iceland and Asda enabling it to increase its channels to distribution, and expanding its
reach and selling capabilities, from this, it has seen great success as mentioned in Porter’s
generic framework and PESTEL analysis (Appendix 2 and 7). Continuing to promote these
partnerships in order to make sure people aware of the new distribution channels, will help to
grow Greggs market share and promote growth. Greggs should also look to find more
partners to build new distribution channels and help to grow Greggs in the UK.
9.0 Implementation of Strategy
In order for the success of the above recommendations, effective implementation is critical to
Greggs organisational strategy. By using the EVR Convergence model discussed by (Johnson
et al. 2006), we can see it is essential the environment, values and resources align with one
another to implement strategic recommendations effectively.
12
Starting with the first recommendation; “Continue to develop product range” in terms of
values; Roger Whiteside wanted to diversify the product range in order to make Greggs a food-
on-the-go business, and not just a bakery. He is committed to building product ranges,
especially the vegan range, as he is testing being a vegan himself, see (Appendix 2). In terms
of resources, Greggs owns its own competitive supply chain, meaning it has the control to
develop its own products and can implement change efficiently within the supply chain. The
product is already in the process of development, see (Appendix 2). Greggs also has high
liquidity showed in the competitor analysis (Appendix 3) in which it can invest in development.
Moving onto the external environment, displayed in the PESTEL (Appendix 2) there is an
increasing demand for healthy living, as well being a vegan, this shows an opportunity to
implement the development of these ranges, however, due to coronavirus the overall demand
is uncertain. There has also been a great demand for the festive range, as displayed in the BCG
matrix (Appendix 6) and shows opportunities to supply seasonal ranges all year round. Overall
for this recommendation, there is a clear convergence between the environmental, value and
resources showing that this could be effective strategic implementation.
it as it has been successful in driving growth for Greggs thus far. However, the partner business
has to be aligned with Greggs values in order for the strategy to work effectively. Resources;
Greggs is a large business that can offer huge growth to partner businesses; its brand has huge
value. This can be seen with UberEats who saw a boost in orders by 40% when adding 300
Greggs stores and 800 McDonalds stores to its UK network, as discussed in (Appendix 2).
Finally, the environment; partnering with other businesses differentiates it from competitors
and provides more routes to market, while increasing its market share. Companies will likely
be looking for partners and promotion to boost sales post coronavirus. Therefore, this is well
aligned to the business and all factors converge well as long as values between businesses
match, this can be a successful implementation according to the EVR Convergence model.

Moving onto the second recommendation; “Continue to invest in supply chain operations”.
Values; leadership is already behind this, and has been a significant success for Greggs since
investing in supply chain operations from 2017 as discussed in (Appendix 2). Resources; due
to large revenues produced in last few years (Figure 1), Greggs is very cash-rich; however, the
amount lost due to the impact of Covid is discussed in PESTEL analysis (Appendix 2) therefore
this may not be something Greggs implement immediately. Greggs has already invested a
considerable amount within its supply chain (Appendix 2) meaning it knows what works well
and what does not, therefore it should be more efficient when investing further. Environment;
technology is quickly changing, and in order to keep up with competitors and maintain its cost
leadership discovered in the Porters Generic Strategies Framework, Greggs needs to invest in
making its operations more efficient (Appendix 8). As this approach is more centralised it poses
threats of being hacked, which can cause disruptions to supply chain operations, therefore it
will need to invest in cybersecurity and contingency plans. For this recommendation, the values
and environment are well aligned; it depends on the number of resources available to Greggs
in order to be able to make a considerable investment in supply chain operations.

The final recommendation is to ‘Actively search for new Strategic Partnerships’. Values;
leadership has already taken on partners in recent years and is aware of the process and supports

13 14
 10.0 Appendices
Appendix 1 – Business Model Canvas
Appendix 2 – Applied PESTEL Analysis
Applied PESTEL Analysis (linked to Strategic
Opportunities and Threats)
Opportunities
Healthy living campaigns have already been used in the UK, for
example the current ‘Change4Life’ Campaign being used by the
government (NHS 2020). This campaign and others in the future are an
opportunity for Greggs to promote and expand their balanced choice
menu which has lots of low calorie on the go food options. (Greggs
2020).
Threats
Previous Government enforced lockdowns due to the coronavirus
P olitical pandemic have caused Greggs to close down all their stores in the UK,
and after the first lockdown resulted in Greggs having a pre-tax loss of
£65.2m and had to borrow around £150m to cover costs (Hancock
2020). With the future on businesses uncertain due to the pandemic,
and potential lockdowns to come. This is a large threat for Greggs.
Brexit – A disorderly exit might have effects on Greggs supply
chains, tariffs, exchange rates and consumer demand (World Coffee
Portal 2019). - There is continued uncertainty regarding changes to
trading arrangements, customs agreements, tariffs etc. This may give
rise to increased costs.
Market forces and the impact of Brexit may result in a shortage of
available workforce, particularly within Greggs shops and specialist IT
roles. The former may be compounded by the relative complexity of
Greggs shop operations compared with other retailers (Annual Reports
2019)
Greggs not able to take part in the ‘Eat out to Help Out’ schemes
whereas its
competitors were who have dine-in options. Led to huge reduction in
sales in August (Winchester 2020).
15
Greggs products are renown for being cheap. And could be considered Covid-19 Economic impact, Greggs swung to a pre-tax loss of £65.2m,
to be an inferior good. An Inferior good is a good that’s quantity
demanded rises when average income is reduced (Kenton 2019). The
E conomic down from a profit of £36.7m in the same period last year (Wood 2020).
impact of coronavirus has caused a 28% reduction in income across the Unemployment rate forecast to increase. With a prediction of 9% in 2021
UK (Bank of England 2020) lower income in the UK can cause an (Howes 2020). This has already taken effect at Greggs who announced
increase in demand for Greggs products if they are cheaper. 820 job losses in November 2020 (Guardian 2020).
Grab and go food market dominates the on the go food market, UK Food on the go market is set to contract by 29% in 2020 as a result
which represents a 33% share of the market (McAllister 2020). of the coronavirus pandemic (McAllister 2020).
Greggs is predominately grab and go so is a good opportunity for
more growth. Average number of food to go visits per consumer per month has fallen
by 25% year- on-year (McAllister 2020).
Vegan lifestyles are on the rise with an increase from 150,000 vegans Attitudes to healthy living have changed, Greggs supplies a lot of food
in 2006, to 600,000 vegans in the UK in 2018 (Jones 2020). This is a
new market that continues to grow at a large rate. Greggs vegan
S ocial that is high in calories with high fat content.
sausage role is extremely popular and is an area in which Greggs can Due to coronavirus people are less likely to risk going out and into
expand in, Roger Whiteside CEO has also become a vegan which shops such as Greggs.
supports growth in this product range (Dore 2019).
Healthy living trends have increased In recent years as people seek a The coronavirus outbreak has had a huge impact football in retail
healthier lifestyle. locations in the (UK). Since mid-March, footfall in UK retail
Greggs has introduced a ‘Balanced choice’ menu which offers under locations (including high streets, shopping centres and retail parks)
400 calorie options, this range now represents around 10% of Greggs fell the sharpest on April 12, coinciding with Easter, with a decline
sales value and is growing faster than the core offering (Greggs 2020). of 89.9 percent (Sabanoglu 2020).
This shows a huge opportunity for Greggs in a growing market. Greggs
is planning on developing its products in line with changing food trends
(Greggs 2020).
Investment back into the community. Greggs invests at least 1% of
profit per year to the Greggs foundation. Through a wide range of
initiatives, they have managed to improve the quality of life in local
communities. They provide over 6 million free breakfasts a year to
children (Greggs 2020).
Donation of unsold food from shops for years (Greggs Foundation
2020).
Store locations, Greggs aims to bring its stores to its customers,
making it as assessable as possible
Greggs have customer loyalty schemes
Delivery partnership with Just Eat, the most popular food delivery
platform in 2019 (BeamBox 2020). Just Eat increased orders by 40%
T echnological Technology market is changing fast, and can be hard to keep up. Many
competitors have moved faster than Greggs, for example McDonalds.
by adding 300 Greggs stores, and 800 McDonalds stores to its
network in the UK (BBC News 2020). By only partnering with Just Eat, they may be missing out on more
sales through the likes of Deliveroo and UberEats
Investment in Greggs app so customers can lick and collect as well
as earn customer loyalty rewards Moving towards more centralised production and larger distribution
Increased social media usage and advertisement, as currently Greggs
centres of excellence, with a greater reliance on technology. As a result,
the impact of any operational failure on shops and customers increases
currently relies mostly on word of mouth and social media for
promotion, compared to competitors who prioritise advertising more.
(Annual Reports 2019)
As with all businesses, Greggs data and systems are exposed to external
Greggs has invested heavily in Supply chain operations, this means threats such as hackers or viruses. These could lead to data breaches, or
that they are able to operate at low costs and high efficiencies, making disruption to our operations (Annual Reports 2019)
them a cost leader. They started investing in Supply chain operations
in 2017, and plan to invest up to 100m by 2020 (Henderson 2020)
Plastic only used where necessary. 27 tonnes removed from operation.
Now have paper bags and wooden cutlery, they also attempt to make
E nvironmental Greggs carbon footprint for the 2019 financial year was 95,962 tonnes
of carbon dioxide and equivalent gases (CO2e), with an intensity of
everything recyclable (Greggs 2020). 82.54 tonnes of CO2e per
Refill UK’s largest partner, encouraging people to re fill their bottles £million turnovers. (Greggs 2020)
(Greggs 2020).
Food waste reduced, as they give food to charity’s.
15 Years with Fairtrade, supplying coffee (Greggs 2020)
Meat/eggs/palm oil used in Greggs are all sustainable sources
(Greggs 2020).
Transparency with their environmental effect and actively attempt to
do better.
Greggs Pledge
16
The Organisation for Economic Co-operation and Development Environmental laws may be increased, causing a threat. Appendix 3 – Competitor Analysis
(OECD) has assessed the extent of regulation among its 47 member
states. This shows that in most regards the UK has relatively low levels
L egal
The sugar tax implemented in 2018 (Gov 2018). As well as the ‘Pasty
Competitor Price Place Promotion Product Turnover Stores
of regulation compared with other member states (NAO 2017) Tax’ (Neate 2012) both have been a threat to Greggs, as can increase
Analysis
costs, therefore increasing prices of goods, and this may reduce
European laws that may have negatively affected Greggs will no
longer be in place post Brexit.
demand. Low Available
nationally in the
- Public relations - Large range of ‘food-on-the- go’ choices £1167.9m –2019
(Greggs
2,050 Stores in the
UK (Statista 2019)
Increased Tax rates post coronavirus, in order to cover huge UK. - ‘Brand of the Year 2019’ - Started with just pastries 2020)
from cheeky PR stunts and
government spending which is currently at 214.9bn (king 2020)
good- humoured, self-
- Now does coffee, sweet treats, fruit as
well as vegan, vegetarian and low calorie
Food Hygiene laws could be a threat to Greggs deprecating marketing
options.
(Barnett 2019)
Continued growing concern over the environment and health may -Loyalty cards
drive the introduction of additional levies and taxes. - Rely on word of mouth
Large financial penalties could be imposed on the business for breaches advertisement
of Food Safety or Health & Safety legislation. Due to the number of
Medium Costa has a - Emotion led marketing - Hot and cold drinks £1340m 2,422 Stores in the
shops Greggs has, and the volume of customer transactions handled on a
worldwide Worldwide and UK & 3,821
daily basis, they may be exposed to isolated incidents which fall below
presence with - Advertising (Specialise in Coffee)
£1130m in the including
our expected standards and may expose them to prosecution (Annual
shops in 31 -Loyalty cards (Costa coffee - Sweet and savoury snacks to go UK. (Statista international stores
reports 2020)
countries.
club) - Toasties/Paninis/Wraps/ 2019) (Statista 2018)
- Uses geographic and Pastries/soups/muffins/cakes, ect.
demographic segmentation - Have vegan/Vegetarian options
strategy to target customers
(Bhasin 2018)

Medium Global business,

operating in 110
- Mass selling is the primary - Customisable sandwiches, coming in 2 £515m in the UK
& Ireland (Woods
- 2,229
way of promoting sizes, foot long or 6 inch. stores in the UK
countries. 2016)
- announce promotions - Healthy/Vegan/Vegetarian options and a huge
through TV ads, radio ads, available number of 41,600
stores globally
newspapers and online ads
(Bartleby 2019)
- Also offer other small snacks or
salads (Statista 2020).
- Promotes through athlete
influencers, promoting healthy - Hot & cold drinks
living
with subway products.
Low/ Global Advertisement on a large scale - Hot and Cold drinks Worldwide turnover In the UK,
Medium business - Promotions - Breakfast/Lunch/Dinner for McDonalds in McDonalds has
operating - McDonalds Monopoly options 2019 was £15,774m. 1300 Stores.
in 100 - Transparent strategy (in Burgers/Wraps/Chips/Nuggets In the UK, it was Worldwide
countries. regards to nutrition) - Products are adapted to individual markets £1,600m (Statist McDonalds has
- Different countries receive they are based in 2019) 38,695 stores
Different promotions depending (Statista 2019)
on their preferences
High Pret operates - Promotes freshly made - Hot and cold drinks £710m for 389 Stores
mainly in the UK. ‘Natural’ food - Baked goods UK business in the UK, and 450
But has - Ranked highest in customer - Sandwiches/Salads (Price 2019). worldwide.
shops in 9 Loyalty between UK coffee - Breakfast Most UK stores
different shops - Sweet treats located in
countries. Advertisement - Dinner options London.
- Vegetarian Pret separate
shop options
High Starbucks - Uses a large variety of - Hot and cold drinks UK Revenue 31,256 stores
operates promotion strategies, this mix of - Baked goods was £372m worldwide, with
in 76 Strategies makes them stand out - Sandwiches/Salads (Starbucks 995 stores in the
Countries - Strong brand image consistent - Breakfast 2019) UK (Statista 2019)
with messaging - Sweet treats

17 18
 providers. (NO)
Appendix 4 – VRIO Table and Analysis Organised to exploit: Delivery is now very important for Greggs, especially during the lockdown period in which all shops had to be closed, and
preferences for delivery has increased. (YES)
Customer Experience
Is it: Is it: Is it: Is it: Important for the organisation that they have good customer service, but most competitors also have the same standard of service. (employee
Resource or capability Valuable? Rare? Inimitable? retention)
Organisation Sustained Competitive advantage?
Valuable: “The best customer experience” is a key strategic pillar for Greggs (Greggs 2020) They aim to deliver fast and friendly service, in a modern
Centered and attractive environment. This adds value to customer experience when at Greggs.
Owning their own YES YES NO YES Realised temporary competitive parity Rare: All competitors like Greggs, tend to put the customer first, and realise that creating a good customer experience increases loyalty. (NO)
competitive supply chain Inimitable and non-substantial: Can be expensive to make shops modernised and up to date, as well as train staff to be the best they possibly can,
Large number of physical YES YES NO YES Realised temporary competitive parity and make sure the customer has an enjoyable experience with the company. However, most competitors take these steps to ensure that customers have
a great experience. (NO)
stores
Organised to exploit: Having the best customer experience is a key strategic pillar for Greggs and is well organised to make sure that is something
Greggs Foundation YES NO NO YES Realised competitive parity they supply to their customers. (YES)
Strong Brand Reputation
Partnership with Just Eat YES NO NO YES Realised temporary competitive parity Valuable: Greggs strong brand is one of its main sources of competitive advantage, it is considered a national treasure in the UK, this is apparent as
Greggs won Brand of the year in 2019, at the marketing masters awards (Annual Reports 2019). (YES)
Customer experience YES NO NO YES Realised competitive parity Rare: A lot of competitors are well known and loved, but it is clear that in the UK Greggs has a unique relationship with its customers compared to its
competitors. This can be shown through the fact that they won “Britain’s most admired company 2019” which was nominated by peers in the industry.
Strong Brand YES YES YES YES Realised sustainable competitive (YES)
Reputation advantage Inimitable and non-substantial: Greggs brand is extremely unique, and is different to that its competitors. It would be very hard to copy a brand like
Greggs, especially with the UK. Organised to exploit: Greggs is aware of its strong brand, and is the reason they are able to have so many shops
Rewards app YES NO NO NO Realised competitive parity around the UK as they plan on bringing their shops to where their customers are. (YES)
Student Deals YES NO NO NO Realised competitive parity Rewards app
Valuable: The rewards app is extremely valuable to Greggs, as it allows customers to explore and discover new items or deals on the menu, Greggs
Rewards customers now account for over 2% of total sales (Annual Reports 2019) showing the value of the app to Greggs. (YES) Rare: Most
Employee retention YES YES NO YES Realised competitive parity
competitors also have apps which have the same functions, Greggs rewards app is currently ranked 20th in the food & drink market (Search Man
2020), behind the likes of Costa, McDonalds and Starbucks. (NO)
Climate awareness YES NO NO YES Realised competitive parity Inimitable and non-substantial: Apps are often expensive to build and keep up to date, however not hard for competitors to set up a similar app as
many have done so already. (NO)
Vegan range YES NO YES YES Temporary Competitive Organised to exploit: As the rewards app already accounts for 2% of total sales, it has been well organised in order to exploit as much business as
Advantage possible, the rewards app is also advertised well, in order to generate these sales. (YES)
Student Deals
Owning their own competitive supply chain Valuable: Add value to Greggs as it attracts a broader range of customer base. This makes Greggs a student favourite and is highly rated among
Valuable: Owning their own supply chain is valuable for Greggs, as they are able to produce a higher quantity and quality of goods produced in students in the UK (Butler 2020).
centres of excellence, at more efficient competitive prices (Annual Reports 2019).(YES) Greggs offer a free sausage roll or other savoury snack when you buy a lunch meal. As the Sausage roll is rated number 1 in the world (Neilsen 2019)
Rare: Some large direct competitors own their own supply chain, such as Pret and McDonalds, whereas many others do not, so is rarer than not. the deal is extremely popular (YES)
(YES) Rare: Most competitors also do student disocunts, most notably McDonalds who do a free Chicken mayo, Mcflurry or cheeseburger which any meal
Inimitable and non-substantial: Requires significant investment to create an efficient competitive supply chain, however makes sense for (McDonalds 2020). Which is very similar to the deal that Greggs offer. (NO)
competitors to invest, as creates competitive advantages in the long run. (NO) Inimitable and non-substantial: It is very easy and inexpensive for competitors to implement a student deal similar to the one Greggs supplies. (NO)
Organised to exploit: The organisation is very much focused on its competitive supply chain, and is constantly working to ensure it is as efficient as Organised to exploit: It is not heavily advertised by Greggs, and may be an area in which they need to investigate. (NO)
possible (Annual Reports 2019). (YES) Employee retention
Large number of physical stores Valuable: Greggs puts a lot of time and care into their employees, they offer intensive training and are also renown to offer employee lots of benefits,
Valuable: Extremely valuable for Greggs, who’s goal is to bring Greggs to wherever its customers are. Means they have a strong presence across the such as a £300 ‘thank you’ to employees in January 2020 for a successful 2019 as well as employee share schemes with those involved receiving 10%
UK and are easily accessible. (YES) of profits each year. (Annual Report 2019) This leads to employees on general having a higher retention rate of an average of at least six years. (YES)
Rare: Only a small number of competitors have equal store presence to that of Greggs in the UK (See competitor analysis) Greggs has a huge number Rare: Many competitors do not as high employee retention as Greggs. (YES)
of stores, and nearly double the likes of McDonalds within the UK to put it into perspective. (YES) Inimitable and non-substantial: Takes a lot of time and money to fully train staff and also give them benefits and making work somewhere that is
Inimitable and non-substantial: Will take a lot of investment in order to match the number of stores Greggs has, however competitors are still enjoyable, but is doable. (NO) Organised to exploit: Greggs has many process in place in order to keep staff happy, such as the share schemes, and
growing and are able to catch the number of stores Greggs own. (NO) staff training. (YES)
Organised to exploit: Key to Greggs success, as they aim to bring themselves to customers. They aim to be as accessible to customers as possible by Climate awareness
having a large number of stores they are able to do this. (YES) Valuable: Greggs are passionate about being fair to the planet and have expressed this through “The Greggs Pledge” which is their vision on how
they will be a responsible business that customers can trust to do the right thing on their behalf as well as the planets. They hold the carbon trust
Greggs Foundation
standard for achieving a 17% reduction in intensity by increasing efficiencies across their operations in 2019. (Annual Report 2019) This is valuable to
Valuable: This is valuable to Greggs, and important to the organisation who are passionate about the Greggs foundation as they are able to support
Greggs as customers expect businesses to be eco-friendly, and may dis-incentivise customers to buy from businesses that do not take on pledges such
local communities and is clearly close to the organisations heart and culture. This gives the company an image of strong ethical values, which attracts as the ones Greggs has taken. (YES)
more customers. The effects of Greggs foundation are recognised, as in 2019, they won the ‘Making a difference award’ (North of England Rare: It is now expected for big companies to take on similar pledges, and to have climate awareness. (NO)
Children’s Cancer Research 2019) (YES) Inimitable and non-substantial: It can be costly to change operations in order to better the environment whilst saying efficient, however many
Rare: Although the Greggs foundation is an exceptional example of support, the majority of Greggs rivals also support charities in various ways, for companies are taking these steps to better the planet. (NO)
example McDonalds offering to donate to charity during every checkout. Therefore, would not be seen as rare. (NO) Inimitable and non-substantial: Organised to exploit: Greggs has many plays around this, and is one of its key goals. (YES)
Although the Greggs foundation is a unique way of giving to the local communities that may struggle and has been implemented since 1999 (Annual Vegan range
report 2019) it is not difficult for a business to replicate a similar scheme to help out. (NO) Organised to exploit: The company includes its charity Valuable: The vegan range has been a raging success following the release of the vegan sausage roll which gained a huge amount of publicity and
work in many key reports, and is very proud of the work it does for the Breakfast club and other charities. (YES) media attention. The release of the vegan sausage roll saw Greggs receiving numerous awards, such as Product Launch of the Year and Brand of the
Partnership with Just Eat year at the marketing week awards (Annual Report 2019). The implementation of the Vegan sausage roll saw sales rising 7.2% in the year of the
Valuable: This is very valuable to Greggs, who were previously not involved in the delivery of goods, a market that is increasing at a huge rate. The launch (Sembhy 2019). This has caused attraction to the rest of the vegan range, that is still growing. (YES)
value of signing an exclusive partnership with Just Eat, who was the largest UK delivery provider in 2019 (Beam Box 2019) is enormous for both Rare: Lots of other companies have vegan ranges, and continue to grow in these areas in order to match the demand for vegan food. (NO)
companies, and means that Greggs is able to keep up with competition. (YES) Inimitable and non-substantial: Very easy for companies to make vegan ranges, but it is unlikely that they will be as successful as the launch of
Rare: Many competitors have already deliver through apps such as Uber Eats and Deliveroo, which are both growing at huge rates especially due to Greggs vegan range and gain the same traction. (YES)
the increase in food deliveries due to coronavirus. (NO) Organised to exploit: Greggs is continuing to build its vegan range, to match the demand of the ever-growing vegan market. (YES)
Inimitable and non-substantial: It is easy for competitors to sign up to delivery services, as the process are made very easy by the delivery

19 20
 Appendix 5 – TOWS Strategic Alternatives Matrix
Internal Strengths (S)
1. Ownership of supply chain (Greggs 2020)
2. Strong Brand and good marketing strategywhich
builds strong customer loyalty (Ford2019)
3. Just Eat partnership as well as implementation of
Click andCollect.
4. Huge store presence with 2050 stores in the UK
(Statista 2020).
5. Greggs Pre-COVID successwas exponential as
they saw a 13.5% increase insales in 2019 (Lock 2019).
6. Continualinvestment in the ‘Greggs foundation’ has
meant that they are able to provide over 6million free
breakfasts to children in need each year (Greggs
2020).
7. Greggs has a strong leadership and impact of
board.RogerWhitesidehas changed the direction of
Greggs to ‘food-on-the-go’ and kept up with market
trends, which has led to hugefinancialsuccessfor
Greggs (Howard 2019)
8. Has seen great success in keeping up with
market trends and developing their menu, as
seen with the vegan sausage roll (Chapman
2020).
Internal Weaknesses (W)
1. Strong reliance on high- street stores
2. Reliance on supply chain, which could be disrupted by 1. Although currently limited to one nation,
failure of technology
3. Limited to an individual nation, unlike its
competitors, could get larger economies of scale if it
expanded.
4. Greggs is slower than competitors with
technology in terms of delivery. Only a selectionof
shops has the ability to do click & collect, and not all
shops (Curry 2020).
External Opportunities (O)
1. There has been a 39% increase in food
delivery in the UK over the past 3 years
(BeamBox 2020).
2. The vegan trend has seen an increase from
150,000 vegans in 2006, to 600,000 vegans in
the UK in 2018 (Jones 2020).
3. A growing food and retail grocery market in
the UKwhich is expected to grow by 10% between
2019-2022 and will reach £211b (IGD 2020).Itis
oneofthebiggest marketsinEurope,aswellas
one of the top 10 economies in the world,
with lots of room for growth.
SO: Strategies that use strengths
to maximize opportunities.
1.To combat the increase in food delivery,
Greggs need to continue topushtheir
partnershipwithJust Eat, andmakesure that
as many customers know about the
partnership, so that they can use the service.
2. Continualdevelopmentofthe menu, will
help to keep up with rising trends such as being
Vegan. With CEO Roger Whiteside becoming
a vegan himself (Dore 2019) this will help to
push that particular market.
3.Hugestore presence and with plans for more
growth will be able to meet the demands of the
growing food and retail grocery market in the
UK.
Investing in technology to continue to develop
their supply chain operations in order to
achievemaximum efficiency.
WO: Strategies that minimize weaknesses
bytaking advantage of opportunities.
Greggs are in a growing market with an
expected growthof£1.3bfrom 2020-2024 (IDG
2020). Greggs will be able to capitalize on this
growth and continue to grow themselves.
2. Greggs may have been slower to the market
than many competitors with delivery. They
have still signed a large partnership with Just
Eat, who was thelargestUKdelivery providerin
2019 (Beam Box 2019) and the delivery
market is growing at a substantialrate,dueto
theeaseof the delivery services.
21
Appendix 6 – BCG Matrix & Analysis
External Threats (T)
1. Due to coronavirus, footfall patterns have
changed, this can be seen on many highstreets,
with average footfall falling by up to 89.9% during
April 2020, andcontinuingtobelower than the
year prior (Statista 2020).
2. Fierce market competition, with many of
Greggs direct competitionmakingthesameor
more revenue in the UK and having a similar
number of stores in the UK (Latta 2020)
3. Brexit–Adisorderlyexitmight have effects on
Greggs supply chains, tariffs, exchange rates Hot to Go
and consumer demand (World Coffee Portal Vegan Range
2019).
4. New legislationscominginto play that can
affect Greggs, such as the sugar tax implemented
in 2018 (Gov 2018)
ST: Strategies that use strengths
to minimize threats.
Pizzas
1. Footfall has fallen in many major highstreets, Sandwiches Balanced Choice
Greggs has been working on building stores in
differentlocations,whichare away from highstreets,
many of which are Drive Thru. They have also Festive Range
implemented click and collect and home delivery
services to counter the reduction in footfall on
highstreets.
2. Greggs continue to grow and buildnew stores in
theUK,they also differentiate to their
competitors by using reward schemes that
build customer loyalty. They also now how a
presence in supermarkets such as Asda and
Iceland. Hot Drinks
Bacon Bap
Baked goods (Including
sausage roll)
WT: Strategies that minimize weaknesses and
avoid threats.
1. As footfall in highstreets are lowered, and
there is a high reliance on high-street stores, Rising Stars:
Greggs need to focus on stores elsewhere such Sandwiches
as Drive-thru stores. They also need to focus on
click andcollectand online delivery, to spread Number one brand for Sandwiches on-the-go (NPD Crest 2019), Sandwiches are freshly prepared in shop, and have become
increasingly popular for lunch time cheap deals. They are cheap low calorie options lunch options, that match the demand for
their risk.
healthy food (Wunsch 2020). Only Tesco sells more sandwiches than Greggs in the UK, this shows the popularity (Saunders
2. Greggs need to continue to invest in their 2019).
supply chain, and make sure that the technology is Vegan Range
faultless. This will give Greggs a competitive
advantage over other businesses in the highly
With the huge success of the vegan sausage roll, which caused total revenue to increase by 7.2% in 2019 (Hancock 2019) this
attracted a large demand for more vegan options and with the number of vegans on the rise in the UK (Jones 2020) has been a
intense market.
great success, currently the vegan range consists of vegan Sausage rolls, steak bakes, glazed ring doughnuts, sweet mince pies,
3. Greggs needs to be quicker when jumping hot cross buns, southern fried potato wedges, warm winter vegetable soup and the Mexican bean and sweet potato wrap (Enjoli
onto technological trends, as this will separate 2020). This is growing in popularity, and Greggs are continuing to invest in this area.
them from their competition, and keep them Festive Range
ahead.
The Greggs festive range receives heavy media attention, and great anticipation from customers (Nisbet 2020), and is a huge
success for the company, and an essential for Greggs fans.
22
Question Marks:
Hot to go
Hot to go is relatively new to Greggs, and includes spicy bbq chicken bites, and goujons, as well as southern fried potato
wedges. It also has a breakfast box for both meat eaters and vegetarians. How this range is doing is not clear.
Balanced choice:
Balanced choice range is a range of under 400 calorie options (Greggs 2020). It is well known that the UK and other western
countries are turning to healthier options (Wunsch 2020), by implementing the balanced choice diet, It means that customers
who are more health conscious can continue coming back to Greggs and still enjoy their food, there is potentially huge room for
growth within this product range.
Pizzas
Greggs had issues with their original pizzas, however after remodelling to a thinner crust to reduce calories in order to keep with
the market (Foottit 2015), Greggs were able to increase pizza sales. This could continue to grow if more investment is put into
them.
Cash Cows:
Baked goods (Including the sausage roll)
Greggs is most known for its Baked goods, as this is what Greggs started off doing. Greggs sell up to 1.5million sausage rolls a
week (Croce 2019) and is extremely popular for customers.
Hot drinks
Greggs shift up to 1m cups of fair trade branded coffee per week, they sell a flat white for
£1.75, which is 40p cheaper than competitors Pret a Manger, and according to critics, just as tasty (Cumming 2016) Greggs sells
more coffee’s than starbucks in the UK (Saunders 2019) Bacon Baps
Greggs has sold bacon baps for a long time, and they have been voted as the second favourite breakfast in the UK (Annual
Reports 2020) this is a great success for Greggs and as the product is so popular as it is, similar to that of the baked goods, it
does not need any investment to change it, therefor is classed as a cash cow.
23
Appendix 7 – Porters Generic Strategies Framework
Cost Leadership
Greggs has invested heavily within its own supply chain to create centres of excellence in manufacturing and distribution,
this increases the capacity of food produced, meaning they are able to maximise economies of scale (Henderson 2020). This
increase in Economies of scale puts Greggs in a better position to be able to use bulk buying powers and become a cost
leader, meaning they can make more profit and also lower prices which will in turn, increase demand.
Greggs own their own supply chain, this puts them at an advantage, as suppliers they use have to abide by their terms
(Greggs 2020), giving them bargaining power over prices, making them more competitive. There are lots of suppliers to
choose from within the industry meaning that Greggs are able to choose from a large bunch. This gives them more
bargaining power.
Greggs does the majority of the cooking off-site and before it enters the shop (Cumming 2016). By doing this the time
spent cooking in shop is hugely reduced, it also means that there is much more room in Greggs stores for food and not
ovens. This means the store is able to be more efficient, which reduces costs.
Overall this puts shows Greggs to be in a position of cost leadership within the industry.
Cost Focus
Greggs seek to target particular niche markets, and offer low prices specifically to them in order to gain a competitive
advantage for example with students, offering to any student who can produce a valid student ID a free sausage roll, Cheese
& Onion bake, a sweet treat, a snack pack, an apple or a banana with each meal they purchase (Butler 2020). This focus on
students attracts them as they are able to get another item on top of their meal for free and attracts them to come back
regularly.
Differentiation
Greggs has more stores in the UK than many of its competitors (Cumming 2016), this makes it more accessible and
convenient to the its customers giving them an advantage over them.
By creating Centres of excellence, Greggs are able to work on product quality, as each centre will specialise on an individual
product, for example the sausage roll (Sillitoe 2018). This dedication to improving quality differentiates them from other
brands, and ensures the same level of quality across all Greggs stores nationally.
Greggs is a nationally loved brand, with strong customer loyalty in the UK. Their advertisement is witty and often
different to other company’s methods. This was praised in 2019 when they won the ‘Brand of the year award’ due to its
cheeky PR stunts and the introduction of the Vegan sausage roll (Ford 2019). This loyalty towards Greggs differentiates it
from other rivals in the UK market.
Greggs has attempted to increase distribution channels, making Greggs products as accessible to as many people as possible.
You can buy Greggs from Iceland, Asda and JustEat. All of which Greggs have strategically partnered with in order to
expand their reach, and selling capabilities (Butler 2020). As well as this, you can also use Greggs click and collect on top of
just purchasing from in store. This gives Greggs every opportunity to reach as many people as possible and differentiate
them from others.
Differentiation Focus
Greggs have specifically targeted students, offering to any student who can produce a valid student ID a free sausage roll,
Cheese & Onion bake, a sweet treat, a snack pack, an apple or a banana with each meal they purchase (Butler 2020). This is
well known among students and heavily used. Differentiating them from competitors.
Greggs have created a balanced choice menu which offers food options all under 400 calories (Greggs 2020). This directly
focuses on people who are health conscious, which is becoming increasingly popular. This has gone down very well,
accounting for 10% of Greggs sales (Cumming 2016). This shows that Greggs is able to cater to a larger range of audiences
by focusing on them and differentiating to adapt to them.
Greggs has created a Vegan range, which has seen huge success in creating a media whirlwind, and this caused an increase in
sales revenue for Greggs of 7.2% in 2019 (Hancock 2019).
24
Appendix 8 – Porters Competitive 5 Forces Framework
Supplier Power (Low) Customer Power (Medium)
. Greggs owns it's own supply chain, . There is a low switching cost for
meaning that Greggs suppliers have to customers, as there is often many
abide by Greggs resonsible sourcing other alternatives available in a close
policy (Greggs 2020) proximity to Greggs shops.
. Greggs purchases food off up to 500 .Greggs product are diffierentiated to
suppliers, meaning they are not
many of their competitiors giving
heavily reliant on individual supplier, customers less power.
this gives Greggs more power over . High number of customers in the
them (Greggs 2020). market, giving them a lower power.
. Greggs invests heavily within its
supply chain to make it efficient
(Greggs 2020).
Market Rivalry
(HIGH)
. Many competitors of a similar size
(Marketforce 2020)
. Top 10 Key players only have 33.6% of
sales (Witts 2020).
. Fixed costs are high in the market, through
both supply costs and costs of owning
shops.
. Realtively slow market growth, at 2.7% per
year (Witts 2020).
New Entrants (LOW) Substitutes (Medium)
.Greggs and other large food on the go . Customers have the ability to use
competitors have huge economies of easily use similar products and
scale, Making it hard for new entrants to services from other industrys to fulfil
join. their needs, they will do this as they
. Current regulations require new firms to may be able to get cheaper prices. The
fulfil strict, time consuming regulatory psychological cost of switching is
requirements in order to enter the minimum and subsitute product may
market (Henry 2018). This may discourage offer similar or better quality
new entrants. standards (Henry 2018)
.A large amount of investment is needed
to compete and join the industry,
. Greggs has a strong brand and loyal
meaking it hard for new entrants to join customer base, meaning it is unlikely
and compete. people will use other substitues, they
strengthen loyalty with the rewards
section in their app (Greggs 2020).
25
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