Swot Analysis Of Biscuits In Armour

Strategic Analysis of Target Offering Market Domain

Introduction to Biscuit Industry in India: Biscuit industry contributes around Rs 8000 Cr to FMCG industry. Biscuit industry in India in the organized sector produces around 60% of the total production, the balance 40% being contributed by the unorganized bakeries.Biscuits is set to register value growth of 19% in 2013 to reach sales of Rs180 billion. Cookie, with a value growth of 34% in 2013, is set to register the fastest growth within biscuits. Constant retail value sales of biscuits are expected to rise by a CAGR of 10% over the forecast period. Consumer demand for indulgence in biscuits is also growing.

Porter’s Five Forces Analysis

Rivalry within the Industry

Biscuit industry is dominated

Macro-economic factors can differ per continent, country or even region, so normally aPEST analysis should be performed per country. Here is the Analysis done in the Indian Context of the Biscuit Industry

Political

 Taxes: The Excise Duty on all Value Added food products like Nutritional andhealth foods, high value of Ready to Cook/serve products to be brought down to a maximum of 8% from 16%.

 Production and Distribution licenses have been liberalized.

Economical

 Lack of technology up gradation in manufacturing, packaging etc. has also been afactor affecting our industry, along with inadequate financial credit and support particularly for the medium and small scale biscuit units.

 Increase in per capita income and growing GDP in India leading to the increase in power of buying of Indian customers gaining popularity of foreign products

Social

 India is 3rd largest producer of biscuit in the world

 Per capita consumption in all the segments of the markethas been increasing, and hence increasing demand.

Key

Benefits:

 Effective utilization of resources by predicting the sales.

 By forecasting demand for future periods, a company can alter its business and marketing strategy to satisfy expected demand by its customer base

 Demand forecasting also allows a company to control its production costs

 Demand forecasting can help in tracking overall performance of the company and gives the company a basis to compare actual demand with management 's expectations.

Vendor management

Centralized Vendor Management is a proven method of reducing overall expenses and reducing vendor response time. Vendor management services are designed to reduce costs, improve vendor performances and also to identify and manage risks.It can be used to negotiate contract renewals or find services that provide a better value than the current vendors. Benefits

 It will help in Identifying vendors that are more appropriate. Sometimes there are suppliers that will provide better terms and price levels.

 It will also help in Identifying opportunities to consolidate vendors. Providing vendors with larger or more frequent orders, often results in better pricing and