Gf Craft-Gluten Free & Organic Cusuine Business Plan

Porters Five Force Model

Threat of New Entries in the Business
It is not too expensive to enter into the business.
Anyone can start the business as it just needs a little capital to start the business. People will probably be attracted to start the business if they see it prosper and bring in a lot of profits.

Low barriers to entry in the business.

There are few regulations that are set to regulate the starting of food business. They are very simple and they can be achieved easily. There are no barriers by the government to start a business as it still seeks the expansion of the economy.

There is experience needed but the training is easily available.

Competitive Rivalry
Few competitors.
There are still few competitors of the bakery in the region for the moment. Competitive rivalry is, however, expected after a few years from the starting of the business.

Low customer loyalty.

People in the region are more loyal to their traditional foods. Customer loyalty is expected to minimal as they will only turn to the bakery as the last option. People might prefer to stick to the other bakeries as they might not see the advantages of free gluten products.

Supplier Power

Moderate number of suppliers
There are many suppliers that we can use for delivering the food to our customers. We can also start our own supply chain in the business.

Ability to change

The supplier business is increasing and there is a possibility that it will change for the better.
Threat of Substitution
There is an ability to import the product.
The main threat is the importing of the same products from outside the country. This can be seen off as our bakery will offer fresh food.

Buyer Power

High buyer power.
The city is mainly occupied by the middle class which shows and promises a higher buyer power.
SWOT Analysis
Strengths
The bakeries will be the first and only one in Kuwait. The other bakeries offer products with gluten which makes us unique.
Social media marketing. Availability of Facebook and Twitter to make advertising much better and easier. It will not cost the business a lot of money.
New and different varieties of baked products in the bakery will give us the benefit of product differentiation in the region.
The staff that has been hired is experienced and able to perform. The staff will be carefully selected according to their achievements so that they can produce high quality and reliable work.

Weaknesses

Products produced in the bakery are perishable and therefore need to be sold as soon as possible in order to maintain maximum benefit. Consumers also prefer fresh bakery products.
Lack of experience. This is the first bakery to produce free gluten products and it will be difficult to understand the customers.

People might prefer to stick to the other bakeries as they might not see the advantages of free gluten products.

Opportunities
Expansion of the bakery in the future. The bakery aims at expanding to a variety of bakeries in the near future as planned in our long term goals.
Growing market. The market in Kuwait is growing very fast and this means that the company will be able to sell to its maximum potential after it has been established.
The use of new technology will help us in keeping in touch with the customers and also discovering new items to introduce to the market.

Threats

Product substitution. People might start importing rather than buying the locally made products.
Price wars. The existing bakeries no matter the presence of gluten in their products, will not be put down without a fight. It is expected that they will spark a price that might be costly for us.

External changes.

Competition. The already existing restaurants are a problem when it comes to the prices and also the products that they make.

Internal & external competitive analysis

Internal Competition
There is no internal competition as the roles have been carefully laid out and tested before. The main of doing this was to ensure that there was no internal competition as it is worse than external. Therefore, the roles are designed and designated to members who are qualified. In the essence that they are not performing they may be taken to lower ranks or stopped from working depending on the reason that they could not perform. I have done everything possible to ensure that internal competition is stopped at all costs. We will work hard to ensure that internal competition never occurs in the business.

External Competition

Currently, there is minimal external competition as our products. The competition that is there is from bakeries that have products that have gluten available. This will not be a big competition that the bakery will have to worry about in terms of the products. Their products will however be cheaper than ours due to the technology that we will be using and also the products that our company will be making. The price is therefore the main problem but this can also be overcome. The business just needs to focus on making products that are of high quality so that we can be able to attract more customers than our competitors. If they know about the advantages of our products then they will be able to stick to our products and become loyal customers.

Resource based analysis of competitive advantage

There is the availability of the raw materials in the market that can be found at a fair price. They are tangible and acquiring them is not that difficult. Wheat and oil can be found in abundant in the region as it is productive in producing wheat. The cheap labor will allow us to use the goods at a far much better price. The connections and alliances that we are going to form with the companies will allow us to get the products even at a far much better price than the other competitors. This will give the business the chance to stay ahead of competitors and provide much better quality goods.