Breaktalk Case Study
Essay by Pich • February 26, 2017 • Term Paper • 386 Words (2 Pages) • 996 Views
BreadTalk
- New entry market: For BreadTalk bakery has high risk with their rival. And their rival are Tous Les Jours bakery, bread street vendor, local store that sale bread such as 3A bakery and Bayon bakery. So BreadTalk have low concentrate because BreadTalk just beginning opening brand in Cambodia. As the result, some people have not known about it yet. The other point is about the high price that is not fit with the economic scale of Cambodia.
- Rivalry: BreadTalk’s competitors in its bakery business include large and diverse groups of bakery chains and individual operators. So it has the high competition with many companies. And the competitors provide similar product offerings at lower competitive prices. Although, the biggest competitor of BreadTalk bakery is Tous Les Jours bakery. And BreadTalk bakery face diverse competitors, which reply on innovation and product variety to attract customer. But the strength point of BreadTalk that more attractive than Tous Les Jours bakery are BreadTalk bakery show how to baking to the customer while they are across the store and it has many design shape of bread.
- Power of supplier: Supplier relatively low bargaining power on BreadTalk because of the large number of existent supplier. Moreover, the ingredient of bread such as flour, rich and eggs have a lot of supplier.
- Buyer power: BreadTalk bakery has high customer concentration because it is a new brand bakery and the majority of Cambodia people is want something new. So it have large volume of purchasing. And the cost of switching is high.
- Threat of substitute: BreadTalk bakery has high threat of substitute product such as: rice, noodle, hamburger…..etc .
Five forces of BreadTalk | Explanation |
BreadTalk has a high threat of new entrant. | Because it’s just started up business in Cambodia. So some people have not known it yet. |
The rivalry of BreadTalk is high | Because there are many bakeries store who sell the same product with the lower price. |
Suppliers have low bargaining power on BreadTalk. | Because when there are a large number of substitute inputs, suppliers have less bargaining leverage over producers. |
Buyers have high bargaining power on BreadTalk | Because of customer perception and loyalty of new product. Even thought, the price is still high but the buyer still want to buy product. |
BreadTalk has high threat of substitute. | Because customer can switches to different type of food. |
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