Compile a swot analysis for Betty’s business. Quote from the scenario below
“Betty worked at a a bakery of a large supermarket in Arconpark for twelve years. Three years ago she resigned and started her own enterprise, Jankies’s Bakery, in Vanderbijlpark. The enterprise is located in a small building near the taxi rank. Her product range consists mostly of commuters and people who are working In the immediate vicinity of the enterprise.
Betty’s product became well-known in the area. Local shops and businesses started to order bread and pastry from her. They encouraged her to include products such as homemade sandwiches, “votkoeks” and confectionery in her product range and suggested that she consider catering for small functions in the area. Betty did that on a trial basis and it was such a success that she started to do it on a full time basis.
She appointed at least four new bakers and one sales lady to cope with the orders from the growing demand of the middle to higher-income local residents. Seven to eight moderate batches of bakery and pastry products are prepared during the day to ensure freshly baked goods are always available.
Competition in the local area is somewhat sparse and does not provide the level of quality and customer service as jankie’s bakery. Most competitors in the area buy their cakes and pastries from suppliers and do not have their own baking facilities giving jankie’s bakery a good competitive advantage as their products are freshly baked on a daily basis.”
SWOT Analysis for Jankie's Bakery:
Strengths:
1. Reputation: Betty's bakery has become well-known in the area and has gained a positive reputation for its products.
2. Unique Product Range: Jankie's Bakery offers a wide range of homemade sandwiches, "votkoeks," confectionery, and other baked goods, which sets it apart from competitors.
3. Freshly Baked Goods: Unlike competitors who buy their cakes and pastries from suppliers, Jankie's Bakery has its own baking facilities, ensuring freshly baked goods are always available.
4. Quality and Customer Service: Jankie's Bakery offers a higher level of quality and customer service than competitors in the local area.
Weaknesses:
1. Limited Location: The enterprise is located in a small building near the taxi rank, which may limit visibility to potential customers.
2. Higher Costs: Having its own baking facilities and employing additional staff may lead to higher operational costs for Jankie's Bakery.
3. Dependency on Local Market: Jankie's Bakery primarily serves commuters and people working in the immediate vicinity, which could limit growth opportunities.
Opportunities:
1. Expansion of Product Range: Jankie's Bakery can explore further diversification of its product range to attract a wider customer base.
2. Catering for Small Functions: The success of catering for small functions on a trial basis offers an opportunity for Jankie's Bakery to expand this service and tap into the event catering market.
3. Taking Market Share: With sparse competition in the local area, Jankie's Bakery can aim to gain a larger market share by consistently providing quality products and customer service.
Threats:
1. Potential Increase in Competition: As Jankie's Bakery continues to gain recognition and success, it may attract new competitors in the local area.
2. Changing Consumer Preferences: If consumer preferences for bakery products change, Jankie's Bakery may need to adapt its product range accordingly to meet market demands.
3. Economic Factors: Economic downturns or fluctuations could impact consumer spending habits and potentially reduce demand for Jankie's Bakery products.