Pastry Shop Case Analysis free essay sample

1. Short intro about the company The pastry shop Ola la founded in October 2011 in Skopje and its located in the one and only GTC mall in the centre of the city. At the moment their key advantage is that they only use superb materials and there are no artificial ingredients in their products, whereas the also prefer baking and make their products in front of the eyes the customer. 2. Analysis 5 Porters forces ? Threat of new entrants As in every business, also for Ola la, there is threat of new competitors entering the market. Even though they present themselves as the only company which at the moment is using superb ingredients in the preparation of their products, on market level there are more than 10 other cake shops that I can think of instantly, and the nuber keeps growing. ? Threat of substitute products or services Ola la is known to be expensive for the average Macedonian customer, which increases the risk for using substitute products. We will write a custom essay sample on Pastry Shop Case Analysis or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page ? Bargaining power of customers (buyers) Maybe customers have the power to bargain, however though the prices for the products are official and therefore standard. ? Bargaining power of suppliers Ola la my face little problem with the inconsistency of quality of certain products due to resources used i. e. running out of certain ingredient for some of its product, due to import inconsistency. ? Intensity of competitive rivalry Most of the pastry shops in Macedonia are promoting their self over social medias or other form of web markting, therefore rivalry is possible because other pastry shops offer salty and sweet products, whereas Ola la offers limited salty products. 3 PEST As in every business even for Ola la if there are major increase in taxes, labor taxes etc, the cost of doing business will increase therefore the prices of the products must be increased and that would create additional problem for selling the products in such economic environment. Currently we don’t have high economy growth, which is limiting the customers and decreases their ability to continuously buy certain products. The health consciousness in Macedonia is rising which is good for Ola la. Ola la’s target group is wide and this means high-willing customers. Inovation in decoration is present at Ola la. Survey The survey made among different age groups of male and females made didn’t bring positive results. According to the majority participants on the survey the quality level of the pastries and sweets has dropped since they opened. It was conducted among different aged persons and also both male and female. According to the majority, the level of quality of the pastries and sweets has dropped since they opened, however, the prices remained the same. Brand perception and image In Macedonia Ola la is positioned quite well, and its know by its uniqe style of products. However though, the perception of the brand is that the products are expensive. Brand image resembles the one in USA, more specifically the pastry shop Oohlalasweets in Texas, but its still unique for Skopje. 7 P’s ? Product: There are many substitute products similar to theirs. ? Price: As mentioned before the prices for their products are high, comparing to the prices of their competitors. 4 ? Place: Their location is not really accessible unless you are in the mall for some other reason. But if you are determined to buy their products there is enough parking space around. ? Promotion: The shop currently is promoting through via Facebook and their online page. But they can be found on many events around Skopje. ? People: . customers and employees are the most important factor in every business. Employees must know what they sell whereas customer need to justify how much they pay for what. ? Process: The process of creating the products is done by recepies mainly coming from USA. ? Packaging: Their package is simple and somewhat fancy. SWOT S- Ola la is one of a kind pastry shop in Skopje, and probably one of the few that uses superb ingredients only. W- Loos of quality over time. O- Introduce their products into the bigger supermarkets, and open another shop in other part of the city. T- Price vs. quality, and cheaper substitute products 3. Diagnosis of the problem My opinion is that at the moment there is no realistic problem for Ola la, but only potential growth. Prices are somewhat high and there is lack of information among potential customers behind having such high prices. 4. Solution for the company Ola la should consider entering biffer markets such as Vero, Tinex or similar. Also probably opening another store in other parts of Skopje might decrease their prices of the products.