A comfortable atmosphere provides a place where the customer can work, meet, relax or enjoy a healthy choice of bread. Freshly brewed coffee, expresso drinks, frozen coffee drinks, specialty teas and other beverages, along with assorted bakery, lunch and desert items make this a place to go and relax anytime of the day. 2.
Barriers to Entry
The major barrier to entry for a specialty bakery is the perception that healthy food tastes worse than unhealthy food. Since the population that would shop exclusively at a specialty bakery is very limited, it would be a huge disadvantage to exclude the general population based on this negative public perception. Capital requirements would also be a barrier to entry due to the high initial overhead associated with bakery equipment. Strength of Competitors
Bread Empire Bakery will face competition both from specialty bakeries and traditional bakeries. There are many competitors in the market, both big and small, but their offerings do not match those of Bread Empire Bakery in terms of healthfulness, quality of ingredients and variety of specialty products available. While larger competitors will rely on lower price points, Bread Empire Bakery will be able to deliver higher quality products to both the general and niche markets of the baked goods industry. Other bakeries seen this as an opportunity to gain profit, such example are “Golden Harvest” from Australia and others independent bakeries. Bakery industry has a perfect competition market structure. Under perfect competition, any profit-maximizing producer faces a market price equal to its marginal cost. This implies that a factor's price equals the factor's marginal revenue product. Generally, a perfectly competitive market exists when every participant is a "price taker", and no participant influences the price of the product it buys or sells. Specific characteristics may include: * Zero entry and exit barriers – It is relatively easy for a business to enter or exit in a perfectly competitive market. * Perfect factor mobility - In the long run factors of production are perfectly mobile allowing free long term adjustments to changing market conditions. * Perfect information - Prices and quality of products are assumed to be known to all consumers and producers. With new penetration and establishment of companies such as Golden Harvest and other independent bakeries, Bread Empire Bakery is at stake of losing valuable customers and incomes. The closest thing to a perfectly competitive market would be a large auction of identical goods with all potential buyers and sellers present. Anyone is free to enter and leave the market at no cost. There is relatively few barriers to entry/exit exist in bakery industries. 3.
Bread Empire Bakery is the first to introduce specialty bread to the market. This bread is of quality and capturing many customers. Bread Empire Bakery is established by James Lee in 2001 that started his specialty bread right in his own home. As demand increases, by 2003, the first retail Bread Empire was opened. In 2010, James managed to open 12 other outlets across the island, located at shopping malls within the housing estates. 3.1
Fresh daily baked specialty bread at a reasonable price is what Bread Empire Bakery strives to provide their customers. A freshly baked bread available at all neighbouring shopping complexes for all customers. Bread Empire’s breads are made with high quality and on the front end of growing popularity of specialty bread. Bread Empire has breakthrough restaurants and local grocery stores in the initial years. 3.2
James Lee is the founder of Bread Empire Bakery. He had hired John who had worked and managed Bakery Company for 10 years. John will manage the daily operation and plan the marketing strategy. Before joining Bread Empire Bakery, John had worked in many renowned bakeries in Malaysia. John was...
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