Management Executive Summary
1. Executive Summary
A comfortable atmosphere provides a place where the customer can work, meet, relax or enjoy a healthy choice of bread. Freshly brewed coffee, expresso drinks, frozen coffee drinks, specialty teas and other beverages, along with assorted bakery, lunch and desert items make this a place to go and relax anytime of the day.
2. Current Situation Barriers to Entry
The major barrier to entry for a specialty bakery is the perception that healthy food tastes worse than unhealthy food. Since the population that would shop exclusively at a specialty bakery is very limited, it would be a huge disadvantage to exclude the general population based on this negative public perception. Capital requirements would also be a barrier to entry due to the high initial overhead associated with bakery equipment.
Strength of Competitors
Bread Empire Bakery will face competition both from specialty bakeries and traditional bakeries. There are many competitors in the market, both big and small, but their offerings do not match those of Bread Empire Bakery in terms of healthfulness, quality of ingredients and variety of specialty products available. While larger competitors will rely on lower price points, Bread Empire Bakery will be able to deliver higher quality products to both the general and niche markets of the baked goods industry.
Other bakeries seen this as an opportunity to gain profit, such example are “Golden Harvest” from Australia and others independent bakeries. Bakery industry has a perfect competition market structure. Under perfect competition, any profit-maximizing producer faces a market price equal to its marginal cost. This implies that a factor 's price equals the factor 's marginal revenue product.
Generally, a perfectly competitive market exists when every participant is a "price taker", and no participant influences the price of the product it buys or sells. Specific characteristics may include: * Zero entry and exit barriers – It is
A comfortable atmosphere provides a place where the customer can work, meet, relax or enjoy a healthy choice of bread. Freshly brewed coffee, expresso drinks, frozen coffee drinks, specialty teas and other beverages, along with assorted bakery, lunch and desert items make this a place to go and relax anytime of the day.
2. Current Situation Barriers to Entry
The major barrier to entry for a specialty bakery is the perception that healthy food tastes worse than unhealthy food. Since the population that would shop exclusively at a specialty bakery is very limited, it would be a huge disadvantage to exclude the general population based on this negative public perception. Capital requirements would also be a barrier to entry due to the high initial overhead associated with bakery equipment.
Strength of Competitors
Bread Empire Bakery will face competition both from specialty bakeries and traditional bakeries. There are many competitors in the market, both big and small, but their offerings do not match those of Bread Empire Bakery in terms of healthfulness, quality of ingredients and variety of specialty products available. While larger competitors will rely on lower price points, Bread Empire Bakery will be able to deliver higher quality products to both the general and niche markets of the baked goods industry.
Other bakeries seen this as an opportunity to gain profit, such example are “Golden Harvest” from Australia and others independent bakeries. Bakery industry has a perfect competition market structure. Under perfect competition, any profit-maximizing producer faces a market price equal to its marginal cost. This implies that a factor 's price equals the factor 's marginal revenue product.
Generally, a perfectly competitive market exists when every participant is a "price taker", and no participant influences the price of the product it buys or sells. Specific characteristics may include: * Zero entry and exit barriers – It is