A competitive strategy for Arlee's Bread House, Inc.

Date of Publication

2000

Document Type

Oral Comprehensive Exam

Degree Name

Master of Business Administration

College

Ramon V. Del Rosario College of Business

Department/Unit

Decision Sciences and Innovation

Abstract/Summary

Bread making is said to be one of the earliest arts practiced by man. It was known to the Chinese 5,000 years ago. Even remnants of bread have been found in ancient Egyptian tombs. Certainly the Egyptians knew about a form of fermentation and, apart from improvements in fermentation methods and in the production of refined flours, little advance was made in bread technology up to the introduction of machinery in the last century and a half to replace hand making methods.

In the Philippines, the baking industry has evolved from the usual neighborhood bakery to the now popular mall outlets. Arlee's Bread House Inc. is one of the more stable companies in the industry. With its more than a decade of existence, the company has probably weathered some of the most challenging trials that the industry has gone through, such as the fluctuations in flour supply and prices, the bromate scare, and the economic crisis. Arlle's has successfully passed through these tough times with its innate resiliency, which may have been heavily influenced by the family values incorporated in the company.

Presently, there is a growing number of bakeries being set up all over the country, and this would also mean a growing number of competition for Arlee's. In this case, the company must be able to implement better strategies that would allow it to strengthen its hold in the market it is currently serving, and also secure its position in the industry. True enough, the company must be able to explore its potentials for growth and also offer more products to its market.

This paper aims to provide an analysis of the bakery industry, as well as the current strategies of Arlee's. It also aims to present a more aggressive marketing strategy for the company to enable it to penetrate its present market, and also offer new products to its consumers, considering its abundant supply of talents and resources. The strategy is aimed at improving familiarity with and brand recall of Arlee's products, at the same time give emphasis to certain qualities of the products that would also encourage brand loyalty. Measures to decrease expenses would also allow the company to be in a better financial position. All these would place the company in a better stance given the highly competitive nature of the industry.

The Fred David model shall be used in analyzing the bakery industry and the company's position in it, given four important matrices. The EFE Matrix shall identify the opportunities and threats facing the bakery industry and give an analysis as to how the company responds to them. On the other hand, the IFE matrix will focus on the strengths and weaknesses that the company has and give an analysis as to how these factors affect the performance of Arlee's in the industry. The TOWS Matrix and the Grand Strategy Matrix would suggest several feasible strategies that the company could undertake, given the results of the first two matricies. At the same time, strategies would also be suggested based on the growth rate of the industry and the competitive position of the company.

Arlee's is a company that needs to go through a lot of improvements and changing paradigms as far as servicing its market is concerned. To be more specific, strategies in connection with product development and market penetration are recommended for the company. The company can make use of a revived coffee shop as a new channel of distribution and opportunity for coming up with more innovative pastry products. At the same time, Arlee's could consider tapping new markets, given the rise in the number of convenience stores in the country. Extending distribution to farther areas in Luzon would also provide additional opportunities for the company as far as reaching new markets is concerned.

The company may embark on an advocacy advertising campaign, by working hand-in-hand with government agencies in promoting different causes. This can cover environmental, safety, or health campaigns. This aims to gain a higher level of brand awareness for the product. At the same time, this would promote a positive image for Arlee's, and differentiate it from other brands of bread and pastry products. In connection with more recent issues regarding the bromate scare, it is also recommended that the company revise its packaging by informing consumers about not using the said ingredient and focusing on customer-friendly hotlines.

Finally, it is also recommended that the company undergo internal changes as well. This would mean reducing the number of employees without necessarily sacrificing the efficiency of the service delivered. This can be done by enhancing the job functions of the remaining personnel and also undertaking major investments that are expected to result in better quality of products.

It is believed that these strategies would give the company an edge over its competitors, giving emphasis to the company's vision that has helped it survive 16 challenging years in the bakery industry.

Abstract Format

html

Language

English

Format

Print

Accession Number

OCE1084

Shelf Location

Archives, The Learning Commons, 12F Henry Sy Sr. Hall

Physical Description

iv, 81 leaves ; ill. ; 28 cm.

Keywords

Bakeries--Philippines; Arlee's Bread House; Inc

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