This company is using differentiation strategy compared to other companies in the market because it uses different corporate name (DON DON) and brand name (TVOIH 5 MINUT). Because of long existence on the market, DON DON become experienced in pastry production, and it's continually developing and researching to improve quality and production processes. Moreover, this company has leading position in the fresh sweet pastry segment and successfully to increases its market share in the healthy food segment. DON DON has many other strengths compared to its competitors, like: strong relationships with distributors and retail dealers, experienced, capable and highly committed employees, improved and recognized brand name and logo, large share in Slovenian market and presentence in most Balkan countries, customer oriented company, quality and fresh products, keep up-to-date trends, has its own web page, etc.
The main weaknesses of DON DON are: it loss two co-fondators of the company which can loss of original spirit and vision and lots of long term liabilities and high debt ratio which will be problem for funding new liquidity for investment.
2. Identify DON DON's sources of competitive advantage.
Competitive advantage is an advantage a company has over its competitors which allows it to achieve higher rates of Return on Equity (ROE). The resources in a company drive competitive advantage. A highly skilled workforce or a product design team led by an acknowledged industry leader are resources that competitors would find hard to match. Information is also vital to competitive advantage. The IT system of Don Don is one of the major advantage of this firm. They can use that in order to take better decision and understand better the consumers. They also be able to adapt them-self quicker than the competitors if there is some change in the market structure. But all this...