Swot Analysis Of Barilla

Opportunities: Following the reasoning in the “Weaknesses’ advice”, the fact that new/developing markets have a low incidence in the Group’s revenue should motivate the management to look forward to exploiting the vacant profit margins in foreign markets, which are interested in Italian food culture and taste such as Brazil, China, and Middle East. This move must be accompanied by promotion and increase in product awareness, creating a need for Italian pasta in markets that are used to consume equivalent substitutes. The promotion of Barilla’s new products should go together with a tailor made product line in new market firstly satisfying current needs, penetrating the unaware markets. More importantly, the opportunity of continuous product

On its margin Barilla has the opportunity of a favorable cost advantage and the possibility to create a differentiation advantage in new markets by an expansive R&D investment. Government regulation and nutritional requirements for which Barilla is not prepared may limit some expansionistic moves by the Italian family firms (i.e. high import tariffs on Packaged Food product from foreign countries might sterilize the in-house cost advantage created by Barilla, or sub-brand) (Schuiling and Lambin, 2003). The increasing costs for raw materials might endanger the groups position with respect to their long-term plans and relationship with dealers, slowing down the development

The integration with a differentiation advantage is crucial for a multinational firm such as Barilla. Enlarging the brand basket is one of the first moves to exploit such a benefit, but Barilla dedicated further marketing and economic forces trying to fulfill customer needs and wants (Schuiling and Lambin, 2003). For example, the pasta produced in plants in United States is different from the original Italian formula, being more adaptive to American nutritional needs and tastes. Another example is Barilla’s limited edition collection of Regional pasta genres in Italy (i.e. Tortellini for Romagna and Orecchiette for Puglia) (Dessi, Carboni, and Giudici, 2013). These products are the easiest symbol for a differentiation advantage created by Barilla: differentiating and distributing regionally a targeting product obviously brings his higher costs at the production plant, which must dedicate time and effort to a particular good never produced before. Anyways, the price per kilogram of a pack of Barilla’s Orecchiette is going to be much higher than the price for company’s original Spaghetti, but it is more competitive than a local producer/retail store price (Cembalo et al., 2008). The extra value created is represented by the traditional need of the regional customer for having a plate of Orecchiette rather than other types