SWOT Analysis of Toast Box: Identifying Strengths, Weaknesses, Opportunities, and Threats

This article provides a comprehensive SWOT analysis of Toast Box, a contemporary coffee chain in Singapore. It analyzes the company's strengths, weaknesses, opportunities, and threats, and suggests strategies to leverage its strengths and opportunities to overcome weaknesses and threats. The analysis also includes a PEST analysis of the political and legal factors affecting the company's operations in Singapore.

Running head: MANAGEMENT
Management
Name of the Student
Name of the University
Author note

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Table of Contents
1.0 Introduction.....................................................................................................................2
2.0 SWOT Analysis..............................................................................................................3
2.1 Strength........................................................................................................................3
2.2 Weakness.....................................................................................................................3
2.3 Opportunity..................................................................................................................3
2.4 Threats.........................................................................................................................3
3.0 PEST Analysis................................................................................................................3
3.1 Political-Legal Factors.................................................................................................3
References..................................................................................................................................3

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1.0 Introduction
The report throws light on analyzing the internal and external environment analysis
which will be beneficial in identifying the different threats along with opportunities which
will help improve the scenario. Toast Box is one of the iconic contemporary styled coffee
chains which is situated in Singapore. The company was established in the year 2005, and it
helped in recreating a culture which will help preserve the culture of the Nanyang Coffee
along with toast which is being served in the different coffee shops during the 60s and 70s
(Toastbox.com.sg 2019).
The company has its presence in China, Malaysia and Indonesia which is helpful for
them in sharing the delightful experience beyond the shores. The signature dish of Toast Box
is Nanyang Coffee as the company tries to brewed the traditional manner using cloth coffee
sock and the other products which are included in the menu of Toast Box is Hainanese Kaya
to provide the customers with the similar experience which they will be receiving at home.
Lastly, the new product which will be introduced in the respective store is Rice Porridge for
the different customers present in the market and compete with the other competitors.
Rice Porridge will be suitable for the target customers of Toast Box who are the
elderly individuals in the market. There are different benefits which will be provided such as
it is adaptable to the diet of the individuals and fortified with various nutrients which will be
suitable for the company to gain a competitive advantage in the market. The main objective
of Toast Box is to provide the customers with different variants of coffee and other
innovative dishes which will be suitable for all age groups.

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2.0 SWOT Analysis
2.1 Strength
Firstly, innovation is one of the critical strengths of the company as they have
positioned themselves as the brand which fosters innovation. The introduction of Rice
Porridge will be beneficial in competing against different competitors. With the introduction
of Rice Porridge, it will be helpful for them in targeting more elderly customers who prefer
such food items which are relatively low in calories (Baker 2016).
The primary focus of the company is on the quality of the food items which are
produced by them which are offered to the customers. The company ensures that they retain
the signature tastes of each region along with customising the different dishes in an effective
manner (De Mooij 2018).
Moreover, the comprehensive portfolio of the company is the other aspect which is
being mainly focused by Toast Box through offering various food range, and there is more
than 19% of the revenues which have been generated by them in the past few years.
STRENGTHS
Innovation is the key strength
Quality of the food items
Comprehensive portfolio
WEAKNESSES
High Cost of Innovation
Issues related to sustainability
OPPORTUNITIES
Increased preferences among
individuals to eat out rather than
cooking food
Diversfication
THREATS
There is presence huge level of
competition in the respective market
SWOT

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2.2 Weakness
The high cost of innovation is one of the significant weaknesses of the Toast Box
Company wherein the different products which are customized are costly, and the diverse
group of individuals can not purchase it. The company is striving to innovate its products in
the marketing mix, and it is proving to be extremely costly for the company as well.
The other weakness is related to sustainability of the company wherein the new
product Rice Porridge may not be accepted by all the individuals in the other countries
wherein they have their presence as they may have different tastes and preferences. There are
various foreign countries wherein the customers may not prefer the taste and innovation of
Rice Porridge that can affect the overall profitability and competitiveness in the respective
industry.
2.3 Opportunity
The significant opportunity which can be adopted by Toast Box is that in the present
scenario, there is increased preference among the individuals to eat out that can be of
enormous advantage for the company and it will be beneficial in improving their position in
the market as well (Tuten and Solomon 2017). It can be identified that the people prefer to eat
out and it can be attributed to the different changes in trends such as increased propensity to
spend less time to spend on cooking. It will help create a surge in demand for the bakeries in
the global scenario as the people prefer to consume snacks as their meal and gain competitive
advantage.
There can be the other opportunity related to diversification in the different
departments of the company which will be beneficial in improving the overall aspect of

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becoming more competitive. Furthermore, it will be helpful for Toast Box in capturing the
market share in the new areas in the developed market.
2.4 Threats
Lastly, the threats which can affect the growth of Toast Box is competition from
Yakun Kaya which is the most significant threat which will be changing their position in
Singapore. The different operations are mainly dependent on the policies and regulations of
the various economies while operating in the different foreign countries as well which can
affect the growth of the company (Lovelock and Patterson 2015).
3.0 PEST Analysis
3.1 Political-Legal Factors
Firstly, the political risk in the economy of Singapore is low as it is stated by Political
and Economic Risk Consultancy that the respective country enjoys the most economical
possible risks in the entire continent and it is one of the democratic countries. Furthermore,
Toast Box will be able to perform their business operations in a positive manner which will
be beneficial in improving the overall profitability in the market which is competitive (Kotler
et al. 2017). Singapore is one of the politically stable countries, and it has been able to
transform into the improved business opportunities in the country, and it has been beneficial
for the different companies to gain competitive advantage and become sustainable in the
business operations.
Moreover, the government of Singapore is actively involved in the different economic
related activities which prove to be beneficial in affecting the profitability in a positive
manner (Ryan 2016). Besides, due to the stable economy in Singapore, it will be suitable for
the expansion of Toast Box, and it will increase their profitability in the market in an

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effective manner as well (Fahy and Jobber 2015). Singaporean Government is famous for the
different anti-corruption policies which are considered to be an attraction for foreign
investment.
References
Baker, M.J., 2016. What is marketing?. In The Marketing Book(pp. 25-42). Routledge.
De Mooij, M., 2018. Global marketing and advertising: Understanding cultural paradoxes.
SAGE Publications Limited.
Fahy, J. and Jobber, D., 2015. Foundations of marketing.
Kotler, P., Bowen, J.T., Makens, J. and Baloglu, S., 2017. Marketing for hospitality and
tourism.
Lovelock, C. and Patterson, P., 2015. Services marketing. Pearson Australia.
Ryan, D., 2016. Understanding digital marketing: marketing strategies for engaging the
digital generation. Kogan Page Publishers.
Toastbox.com.sg 2019 Toast Box (online) Retrieved from https://www.toastbox.com.sg/
[Accessed on 18th April 2019]
Tuten, T.L. and Solomon, M.R., 2017. Social media marketing. Sage.