Company analysis report
Gregg’sPLC is a company specializing with the retail of solely bakeryproducts to its clientele. With its headquarters located at Jesmondin Newcastle in the United Kingdom, it has been on a growth trendover the recent past. This is exemplified by the 1487 stores which ithas opened in all the corners of the country. The growth anddevelopment is also seen through the fleet that the company hasacquired over time of 375 vehicles and the 90 in store bakeries whichit boasts of. Over the years, it has acquired a massive followingwith a record high six million customers served in its branches everyweek. The company believes that they are the main reason behind itscontinued success( JENSTER & HUSSEY 2001).
Onthe other hand, Nichols PLC is a company that deals with theproduction of soft drinks. The most renowned among them is its leadproduct, Vimto. Since its start of operation back in 1908, thecompany has also been on the rise in terms of growth and progress andmore so in the sale of soft drinks. Some of the other products apartfrom Vimto which the company produces include Panda Pops, Vimtochews and Vimto chew bars. Through the production of these, it hasopened open relations with supermarkets and retail outlets from allthe corners of the country to see to it that they can reach thehighest number of clients and customers possible (RUSSELL-JONES &JONES 2014).
Themarket has a lot that it offers to both companies in terms of theopportunities and threats to the continued operations of the company.This is through the analysis of the SWOT of the two companies andtheir production lines. This will enable the company to know theirstrength areas, their weak points, the opportunities that areprovided by the market and the threats that will be posed by theoperation in the market. Through the analysis of this, the companiesare able to align themselves in a manner that they deem fit for theoperation. This will also aid the company in the countering of suchforces that might arise in the normal operation of the businesses.They include such forces as of competition.
Theanalysis of the SWOT of the two companies pointed out the factorsstated below.
Thecompanies both have several strengths that are attached to them. Thefirst strength is that they boast of having a strong management andmanagement will power. This goes further ahead to give them a strongmanagement base on which to ride on. The second strength of thecompanies is the uniqueness of their products. The Gregg’s companyoffers unique bakery products to its clients. The third strength thatthe companies boast of is the customer loyalty that they benefitsfrom( BENSOUSSAN & FLEISHER 2008). They both have huge followingfrom the customers. The loyal customers are the main reason behindthe continued success of the companies. With this they have made thecompanies the favorite and preferred retail outlet for bakery andsoft drinks products. Another strength that the companies boast of isthe brand name. This has been a goodwill benefit to either of thecompanies. Therefore, for example, as the trend has emerged, onecannot mention bakery products without Gregg’s coming to mind.Similarly, one cannot mention soft drinks and fail to mention Vimto.
Thereare several weaknesses that are associated with the companies. Thefirst major weakness is the absence of the online presence of bothcompanies. Recent trends have shown that the online market is thelatest and largest presence in which businesses can major in. This isespecially so in the social media sites (YOUNGMAN 1998). Social mediamarketing and other online sites have come up as cheap and easilyaccessible sites not only to market but also to trade and the companyhas a weakness of taking it into use.
Thereare many opportunities that are available for the companies to embarkon. The first major opportunity is the online presence. The companieshave much to gain from the online presence. Through this therefore,they will have access to a more dynamic and larger customer base.This also gives room for quick feedback from the customers onproducts. Another opportunity for the companies is the globalizationof their services (LEEUWEN & TERHÜRNE 2010). This is the entryinto international markets and other countries. This offers a chancefor them to meet new markets and new customers. Another opportunitythat they have is the product diversification. This is where they canincrease the product range of the things which they produce. Forexample, on Gregg’s part, other than the bakery products, thecompany can produce other products which they deem to be related totheir products. This will bring about additional revenue for thecompany.
Someof the threats that the two companies faces include the threat ofpolitical interference. Politics can affect the movement andoperations. This can be through the change in the rules that governthe companies and their operations. The second threat that faces bothcompanies is intense competition. They are both subject to massivecompetition from both local and international players. This has theeffect of reducing the revenues that are made by the two companies(WILLIAMS & GREEN 1997). The third threat to the companies is thepresence of many substitute products. This is because the existenceof substitutes affects the performance of the main products of thecompany. This can be through such things as price wars and othercompetition that they may pose. Another major threat is the change inthe customer tastes and preferences. The two companies deal withconsumables. With this, they are subject to frequent and randomchanges in the tastes of the customers.
Inconclusion, there is much that the companies have done in a bid toseeing to it that there is maximum penetration possible for theproducts. This has been through the recent alignments to the focus ononline entry. They have therefore made major steps in establishingand solidifying their online presence over the time. This is becausethey believe that it is the only and latest market that can bring thehighest returns possible and with the least costs associated. Thecompanies have also embarked on a globalization process. With this,they are putting up branches in other countries and placing theirproducts on shelves in counters in outlets outside the country. Theprocess of globalization will aid the companies in increasing thelevels of returns which they will make over the time (MELKMAN &SIMMONDS 2006). Through this therefore, the two companies believethat they will retain their prowess and again become forces to reckonwith in their areas of specialty. They believe that this will resultto an overall increase in the revenues that they generate from theiroperations.
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