Chapter 1

Chapter 1

THE PROBLEM AND A REVIEW OF RELATED LITERATURE

“If you don’t have a competitive advantage, don’t compete.” – Jack Welch Nowadays, pan de sal is rarely known because they have a lot of competitors. This favorite morning fare isn’t shrinking, getting lighter and costlier; it is also fast disappearing in your neighborhood baker’s shelf. Fact is, baking pan de sal isn’t profitable anymore. Unlike before when bakeries could earn more profit baking and selling pan de sal, competition, higher production cost and changing consumer taste are creating changes in the bakery business. These are the common problems in Pan de sal industry in Calauan including the increasing price of raw materials like flour and sugar.
To beat the competition, your neighborhood baker has to bake higher value product to survive. And just like any other business enterprise that has to get as much income from the smallest input, the less profitable pan de sal has to make way for the more profitable and tasty bread. But there is a way to keep the pan de sal from disappearing from your dining table. Pay more for it. That’s what some bakeries are doing. New recipes of bread where innovated and it also became a threat to many pan de sal establishments in Calauan. New innovated bread more tasty and attractive to the customer compare to the ordinary pan de sal. Even though pan de sal is rarely known these days, an innovation changed it, people innovate different and unique taste of pandesal.
One of this is Malunggay Pandesal, this business is known as Budong Malunggay pan de sal which is originated in Cebu by Mr. Jerry Dela Pena. He named his business from his nickname. He innovate a new recipe of pan de sal to have the same taste without costing too much.
The innovation strategy is the competitive edge of Budong Malunggay Pandesal. This gives a direct advantage to the bakery which is able to provide a product or service that none of its competitors is able to offer. The owner of the bakery thinks and creates new and unique ways to make their pan de sal more attractive. Most of the people patronize a new and unusual flavor that is new to their eyes and taste. That’s why there is a competitive edge between other bakeries. The researchers prompted to determine the competitive edge of establishing BUDONG Malunggay pan de sal in Calauan Laguna. First, why the citizens of Calauan patronize the Budong Malunggay pan de sal. Secondly, what health benefits they can get from it. Lastly, the reason why it is more profitable than other bakeries. The researchers motivated to conduct an investigation about the studies. The researcher aims to know the competitive edge of the BUDONG MALUNGGAY PANDESAL.