1. Introduction
Barilla was founded in 1875 in Parma, Italy by Pietro Barilla. It used to be a small store that sold pasta and bakery products. In the 1960s, it differentiates itself from competitors by producing high quality product with noticeable packaging and marketing campaign. In the 1970s, due to the big investment for pasta plant, Barilla was in huge debt and was sold to WR Grace (a multi national firm). Followed in 1979, the Barilla brother had enough money repurchased the company. In the 1990s, Barilla is one of the largest and most successful pasta manufactures in the world and dominates the European market.
2. Analysis
Barilla SWOT Analysis will be shown as below table Strength: * Long history on producing flour-based products * Cutting-edge manufacture facilities * High brand equity * Invest heavily on Promotion / Advertising * Wide range of products | Weakness: * Barilla is Barilla and retailer lack of communication, * Inefficient information flow, * Ineffective distribution system | Opportunity: * Just In Time Distribution system * Develop internal distribution system * Make use of the rapid growing export market | Threat: * Italian food’s market is flat * Customer’s preference is wobbly * JITD in need of high Tech and intense training |
Table 1. SWOT Analysis of Barilla
Barilla has two main distribution systems which are dedicated for dry and fresh pasta product, the difference due to its product shelf life. Dry pasta will have much longer shelf life than fresh pasta. 65% of the product will be shipped from the Barilla plants to Barilla core distribution centers, and then forwarded by Grande Distributionzione (GD) and Distributbuzione Organizzata (DO) to the chain supermarkets and independent supermarkets. The rest 35% will be shipped from the Barilla plants to the Barilla Run depots then from depots, it will be shipped to the chain supermarkets, independent
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