SWOT Analysis of a Bakery Business Business opportunity.

Swot analysis of bakery business. A bakery is a business establishment that offers flour-based baked
food items like pies, pastries, cakes, and cookies to customers. Some tea houses, coffee shops, and cafés
offer baked food items of the bakery in their establishment. The confectionery items also fall under the
category of the bakery.Potato bread,Sourdough,Pita,Pumpkin
bread,Pandesal,Cornbread,Kalakukko,Biscotti,Pretzels,Biscuits,Crackers,Bread,Soda
Bread,Barmbrack,Scones,Cookies,Cupcakes,Croissants,Cakes,Brownies,Tarts,Crumpets,Pies,Pastries,Bun
s,Pizza,Muffins,Doughnuts,Bagels,Flatbreads,Bread Roll,Bread etc

SWOT Analysis which helps to show the strength, weakness, opportunities and threat of the business
and to help ascertain if such business would stand the test of time in the face of competitor and analyze
the internal and external factors that impact the bakery business. Here’s the swot analysis of bakery as
follows;

THE STRENGTH OF A BAKING BUSINESS PLAN,KEY STRENGTH OF THE BAKERY BUSINESS INCLUDE:
1. Skill: The skill of a well-experienced professional would be useful even without having all the tools and
equipment,he or she can always think of another process even it's a traditional way in achieving the set
goal..

2. Good communication skill: If he or she has a good communication skill, because communication plays
a vital role to the growth of a business. A happy customer would always refer a friend, family or love
one's

3. Offering varieties:if he or she can offer varieties of baking food attimes like cornbread, biscuits,
pandesal, crackers, pumpkin bread, pita, bread, sourdough, soda bread, and many other sweet dishes.
However, if you maintain the same quality with variety, then the customer would always prefer your
shop. Then it's a plus.

4. Accepting big offer and meeting up with the time frame:The ability to deliver big orders for parties
and events on short notice is the key strength of any bakery.

5 Equipment :If you’re a bakery shop, then it’s necessary for you to have all the baking equipment and
kitchen tools. Like sieve, fine-mesh, chef knife, rolling pins, paring knife, kitchen scissors,
square/rectangular baking pan, whisk, pie plates, pastry brush, wire rack, metal turner, muffin pan,
rubber spatula, baking sheet, wooden spoon, hand mixer, spoons, measuring cups, and many others.
apart from having it, should also be familiar with their usage.

6 ART DESIGN OR BRANDIND

The unique and artistic designs of cookies, pastries, and cakes provide an added value to your products.
The food and its taste would remain the same; however, the creative design or branding goes a long way
in not only creating aware but drawing attention to a product.. It would give you an edge over
competitors in the bakery industry.
THE WEAKNESS OF A BAKERY BUSINESS

1. HIGH PRICES :The global economic recession, increasing fuel prices, and shortage of supplies has
increased the prices of basic ingredients. Resultantly, the bakery owners have no other choice but to
increase the prices of the bakery food items. However, the high prices of baked food are nowhere a
competitive edge.

2. NEW IN THE MARKET :If the bakery shop is new in the market, then it would take you a lot of time and
marketing to build a database of loyal customers and win their trust and confidence. Therefore, it would
have to spend a lot of resources on marketing and promotion through various channels and mediums of
communication.

3. Far off Bakery Location :Having a bakery shop in the crowded food street or the busy market is a great
competitive edge. It comes in the form of the high rental cost and not every new business is in a position
to afford such a location. If you’re a new shop owner, then you would prefer a low rent and easily
available shop out of the market than a high cost and difficult to buy a shop. However, the downside is
that the growth rate of out-of-market shops is very low.

Opportunity

4. HEALTHY DIET TRENDS Usually, bakery food items are sugary and oily. Both ingredients are the main
cause of higher blood pressure, high cholesterol levels, cardiac attacks, and obesity, and others diseases.
That’s why young people are promoting healthier diet trends.

It also presents a great opportunity for your bakery shop to offer low sugar and less oily baked food
items to the customers. It would allow you to attract the attention of the younger diet-conscious
customer market.

5. PRODUCT EXPANSION :The product portfolio expansion is a great classical strategy to win the market
share. You would have to conduct market research for this purpose in order to find the missing product
in the market. Once you find the missing demanded product in the market, then you should offer the
same product.

6.Bakery School or Institute :If your bakery shop is processing big orders and you need more working
hands to finish the work quickly. You should advertise for trainees without pay, it would be a win-win
situation for both parties. It allows you to get more workers at a lower cost and finish the work on time,
and the trainees would get an opportunity to have work experience and learn on the job.

THREAT

Competitors :If you’re a small business owner, then you would have to face competition from the
worlds’ leading chain brands. Those brands spend billions of dollars on the marketing and promotion of
their products and services. They have established a large database of loyal customers, and it would be
very difficult to change the minds of those customers.
2. YouTube and Social Media Platforms

Another worth-mentioning threat of a bakery business is YouTube and other social media platforms
Instagram and Facebook. A lot of cooking experts and newbies share their recipes with their subscribers
and followers and encourage views to try these recipes at home.

The pandemic of covid-19 has caused the worldwide global economic recession to leave millions of
people unemployed. The buying power of the ordinary working class has declined significantly, and they
have tightened their spending on everything. Resultantly, the sales of bakery shop owners have declined
during and after the pandemic.

3. Safety Regulations

You have to follow the safety and health regulations for the production of bakery products. Since it’s a
food business, the production process and quality of food matters a lot to the customers. You should set
high standards for your bakery regardless of the visit of food authority members; it would show your
commitment to the business you are in

CONCLUSION: BAKERY BUSINESS SWOT ANALYSIS

After an in-depth study of the swot analysis of the bakery business, we’ve concluded that the bakery
shop business is indeed a very profitable business. The pandemic, increasing prices, and competitors are
some of the main challenges. The bakery owner should expand its product portfolio with new offers and
designs to address these issues.