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Swot Analysis Of Breadtalk

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Autor:  webster  18 November 2009
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Words: 820   |   Pages: 4
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SWOT analysis on Breadtalk

Strengths

Unique Concept and Branding

The Breadtalk concept is unique and innovative and this distinguishes the brand from traditional bakeries in the market. More importantly, Breadtalk captures the interest of consumers as it constantly develops products reflecting contemporary lifestyle and current events.

As part of Breadtalk’s unique concept, the layout of retail outlets are designed such that customers have a clear view of bakery items on display. The outlets’ "open" concept design also allows customers and shoppers to view the chefs and bakers at work. The design of retail outlets also gives customers a warm and friendly atmosphere.

BreadTalk has become a distinctive Singapore brand that has gained international appeal and renowned for the way it has revolutionized the culture of bread consumption with its visually appealing, aromatic and unique-tasting products. From 2002 to 2004, the Breadtalk brand was recognized as one of the most recognizable local brands in Singapore with the awarding of the “Singapore Promising Brand Award”. Other accolades include the Singapore Most Popular Brand Award 2002, Superbrand (2002/2003), Enterprise 50 Start-Up Awards (First place), Singapore Most Distinctive Brand Award 2003-2004, Design for Asia Award 2004, and the Most Transparent Company Award (Runner-Up, Sesdaq Category) 2004.

Wide Range of Products

Breadtalk recognizes that customers have varied needs and changing tastes, and offers a wide variety of products at retail outlets to ensure customer satisfaction. Breadtalk presently offers over 150 varieties of breads, buns, pastries and cakes. Depending on the size of the retail outlet, each retail outlet offers about 40 to 60 different items daily.

Breadtalk constantly introduces new products to cater to customers' changing tastes. It currently introduces approximately 10 items every four months and this adds on to the wide selection available at retail outlets.

Strategic Locations

Breadtalk’s retail outlets are located at strategic and accessible places to attract potential customers as having high customer traffic flow is crucial to the success of retail outlets. Breadtalk’s retail outlets tend to be sited near public transport systems such as bus terminals, the Mass Rapid Transit stations and the Light Rail Transport stations. The composition of the surrounding’s retail outlets, such as the presence of departmental stores, cinemas and supermarkets as neighboring tenants, are taken into consideration as they may attract potential customers to retail outlets.
Experienced Management Team

Breadtalk is headed by George Quek, who has 20 years of experience in the food and beverage industry. He is assisted by the senior management, most of whom have more than nine years of experience in the food and beverage or retail industries.


Weaknesses

Pricing

Breadtalk’s products are priced higher than the products of other bakeries, which might deter budget conscious consumers from purchasing Breadtalk’s products, especially since bread is a commodity.

Selection of Products

Breadtalk has a wide selection of products, but this wide selection is only limited to bread and cakes, unlike some other bakeries, which offer pastries and other concoctions, like Bengawan Solo.


Opportunities

Nature of Products

Bread is a commodity and a staple in many countries. Therefore, Breadtalk’s products can be sold anywhere in the world. There is a high potential for global growth since there is a constant consumer demand for bread. There is a great opportunity for Breadtalk to expand its business internationally.

Other Markets

BreadTalk has forged partnerships currently in Indonesia, China (Shanghai, Beijing, Shenzhen, Hang Zhou, Chengdu and Chongqing), Malaysia, the Philippines, Taiwan ROC and the Middle East (Kuwait, Saudi Arabia, Qatar, Bahrain, Oman and UAE), India and Hong Kong.

In addition to the Asia Pacific Region, Breadtalk could also venture into other markets like the U.S., Australia, and Europe regions.



Threats

Product/Brand Concept Replication

Breadtalk faces the threat of product/brand concept replication by other bakeries. However, it must be noted that this is a weak threat since Breadtalk has already cemented its presence in the market, and it will be immensely difficult for a new entrant to pose a threat to Breadtalk’s current large market share in Singapore. Perhaps a greater threat would be the replication of Breadtalk’s product/brand concept by bakeries in regions that Breadtalk have not ventured into, like the U.S., Australia and Europe, which might serve as a barrier of entry to these regions; as well as replication in overseas regions like China, where copycatting is rife.


Competition from Direct and Indirect Competitors

Breadtalk faces the threat of stiff competition from direct and indirect competitors. Direct competitors include bakeries like Qoo Bread, and indirect competitors include specialized bakeries like Donut Factory, which are currently both capturing increasing consumer interest.


Lack of Good Foreign Partners, Local Staff and Rising Labor and Rental Costs

Breadtalk might face problems in its overseas expansion plans due to the unavailability of good foreign partners. The need for a good foreign partner is crucial since Breadtalk expands mainly through franchising.

Breadtalk also needs to maintain its brand image, quality and service overseas, and the lack of local staff which are up to standards could also pose a problem.

Rising labor and rental costs in big cities will pose a hindrance and threat to Breadtalk’s survival in the overseas markets.

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