Swot Analysis Of Biscuit Industry
SWOT Analysis
SWOT Analysis would give a good insight of the strategic capabilities and resourses available and the way these capabilities strengthen the competitive advantage as well as allow the company to exploit new opportunities (Kotler, 1991). SWOT framework analyses both internal factors (strength and weaknesses) as well as external factors (opportunities and threats) that define the market evvironment as well as capability of firm to respond to the market conditions. At the same time, distinction is also made between positive factors (strengths and opportunities) and negative factors (weaknesses and threats)
Strengths
Brand building capabilities
The depth of distribution
Well established sales and distribution network
Strong
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Taste of apple puff is not going well with the local taste.
Global players like munchee currently in the country may venture into chocolate market.
Free Trade Agreement with India. (possibility of Indian big players entering to the local market)
Space for new entrants to invade market focusing particular market segments.
Porter’s Five Forces Model
Michael Eugene Porter (1947)
Five Forces Analysis helps the marketer to contrast acompetitive environment. It has similarities with other tools for environmental audit, such asPEST analysis, but tends to focus on the single, stand alone, business or SBU (StrategicBusiness Unit) rather than a single product or range of products.
Competitive Rivalry within an Industry
• Major players dominate the SL market
• High competition among the players
• Unorganized sector cannot compete with major players in the case of Advertising
• Heavy competition from major players
BARGAINING POWER OF
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THREAT OF SUBSTITUTES
• Substitute threat is more in the case of biscuits ‡
• Growing packaged industry and bread industry ‡
• Traditional Sri Lankan homemade
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