Global Marketing Report: Analyzing Baker's Delight's Sri Lanka Entry

This report provides a comprehensive global marketing analysis for Baker's Delight, a bakery franchise headquartered in Australia, focusing on its potential expansion into Sri Lanka. The report begins with an executive summary and an introduction to global marketing, emphasizing the importance of adapting strategies to local markets. It then delves into a detailed market analysis of Sri Lanka, including population demographics, market size and growth rates, and identification of market barriers and drivers. The organizational analysis examines customer behavior, the 4Ps of marketing, competitor analysis, and the company's competitive advantage. The report also incorporates macro-environmental factors using Porter's Five Forces, value chain analysis, and the BCG matrix. A SWOT analysis synthesizes the internal and external factors, leading to a conclusion that provides recommendations for Baker's Delight. The report aims to assess opportunities and challenges in the Sri Lankan market, offering insights for effective business expansion. It also provides an overview of the bakery industry and its growth potential, highlighting the importance of strategic planning in global marketing.

Global
Marketing

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................4
1. INTRODUCTION.......................................................................................................................5
BACKGROUND.............................................................................................................................5
2.Market analysis: ......................................................................................................................5
2.2 Population.............................................................................................................................7
2.3 Market barriers and drivers:..................................................................................................8
3. Organisational analysis:..........................................................................................................8
3.1 Customer Audit and Buyer Behaviour..................................................................................9
3.2 4P’s:.....................................................................................................................................11
3.3 Competitor Analysis:..........................................................................................................13
3.4 Competitor Advantage of your Product (perhaps – the USP).............................................14
3.5 Positioning Map of Competitors ........................................................................................14
4. Macro environment...............................................................................................................17
4.1 Porter five forces model......................................................................................................19
4.2 Value Chain.........................................................................................................................21
4.3 BCG Matrix:........................................................................................................................22
5. SWOT Analysis....................................................................................................................24
6. Conclusion.............................................................................................................................26
7. REFERENCES..........................................................................................................................27

EXECUTIVE SUMMARY
The current report is about the global marketing which is a chain of activities for
adjusting the strategies in an organisation by adapting the conditions of a particular nation.
Global marketing is more than just selling of product and services in international market as it
involves adoption of practices for offering products as per the culture and manner in which they
get accepted by the customers. This report focused over Baker's delight which is headquartered
in Australia and also maintains a chain of operations in New Zealand and Canada. Now,
company is planning to expand its operations within Asian market by approaching Sri Lanka.
For this, it has performed market analysis in order to determine the challenges and opportunities
present within the market of Sri Lanka regarding setting up of bakery's delight using several
models such as Porter's five force model, Pestle analysis. From this it has been found country is
not much flexible in term of adopting technological changes and also there is a price control
policy to save economy which affect the profitability level of the companies which is a negative
factor for the organisation. In addition to this the competition is relatively higher within the
industry and buyers have high bargain power. Hence to deal with this, Baker's Delight must
focuses over improving their operations to reduce the cost of company and also must regularly
evaluate the competitors strategies so that actions to deal with this can be formulated. Despite of
this, it has been identified that Sri Lanka has greater growth opportunities for the Barker's
Delight as the suppliers power if low which make easy availability of raw material, literacy rate
is higher that make employment of staff easier and country is good in FDI that ensure easy
availability of fund.

1. INTRODUCTION
Global marketing is very much important aspect for an organisation and enables to adjust
and evaluate the marketing strategies as per the particular nation. Global marketing is very much
broad concept and includes the process of selling, creating and positioning by promoting
products in the global market. Large organisations usually perform research and development
practices before expanding into foreign market in order avoid risk factors present and gaining
knowledge regarding the market in which they are entering. This report is based on Baker's
delight which is well known brand in Australian franchise chain with local outlets in new
Zealand and Canada. That organisation was established in year 1980 and it has over 700 bakeries
in the whole world and now organisation aimed to expand its business within Asian market by
entering into Sri Lanka in order to offer Fresh baked products (ABOUT BAKERS DELIGHT,
2019). This report is based on the identification of several market opportunities and challenges
that are present in the market for expanding business. Before entering into market, evaluation of
threats are being performed along with major skills and capabilities that are required before
entering into international market. For that project, Sri Lanka is considered for expanding the
business practices of Baker's delight in Asia which is suitable country as it is considered as one
of large market and 58th most populous country in which people of all age group people lives.
But before entering into the market of Sri Lanka an evaluation over market will be performed to
determine several opportunities as well as challenges present in market so that expansion can be
performed in effective manner (Bahadir, Bharadwaj and Srivastava, 2015). For performing this
several models will be such as Porter's five force model, Pestle, BCG matrix, Value chain model
and SWOT analysis. After performing this investigation using these models for research and
development, the baker's delight will be able to take decision regarding expansion in particular
nation.
BACKGROUND
2.Market analysis:
Today, the expansion of global bakery product industry is growing at rapid pace and its is
forecasted to reach up-to 7.0% p.a. In the upcoming years. The market of Sri Lanka is also
growing fast and it has been identified that the market share of bakery product grown up to
14.8% which is very high and provide a greater market growth opportunities to the businesses

that are trying to enter in market of Sri Lanka (World Bakery Product Market, 2019). This is
because demand is higher among customer regarding the bakery product which support
businesses in getting easy acceptance with in the market. In addition to this, the market potential
rate of Sri Lanka in terms of bakery product is around 0.15%. But despite of all these positive
factors regarding the Sri Lanka bakery market, these also brings up several tough competitions
from the rivalries that are already operating in country. This includes perara & sons which is a
big giants in market of Sri Lanka. This country is an upper middle income nation which is
located in the south Asia and it is one of most suitable for the marketers to establish in that
market because it is one of income and population based organisation. It has 88.7 billion dollar
GDP and Per capital income is 4100 billion dollar in year 2018.
2.1 Size of market and growth rates:
The potential market size of that industry or organisation that are GDP at constant price
in the first quarter of 2018 recorded USD 13115.84 million that is very much potential for
organisation to deliver one of best value to the ultimate consumer base. With the economic
growth rate in the first quarter in year 2018 estimated as 3.2% in comparison to the other nations
(Food & Beverage market in Sri Lanka on high growth path, 2014). From the last decades the Sri
Lankan food and beverages industry and their outputs grown rapidly.
(Source: Bakery Industry Market growth rate in Sri Lanka, 2019)
Sri Lanka is a developing city which covers a wide range of urban areas and the growth
rate of Bakery industry is rapidly increasing, which represents that the business expansion in Sri
Lanka related to Bakery industry has wide future growth. The increasing interest of people
related to bakery products will support the market growth. In the market of Sri Lanka the
Illustration 1: Bakery industry market growth rate in Sri Lanka

demand of bakery product is high as there is major population is lies over consuming bakery
products, so the growth of bakery industry is high in Sri Lanka.
2.2 Population
Sri Lanka is an island country in South Asia which is located in Indian Ocean. As per the
population analysis of the report of 2019, the estimated population of Sri Lanka is around 21.32
million which is less than the population of 2013. Sri Lanka is also a developing country which
covers most dense areas that are lying on urban cities (Beck, Chapman and Palmatier, 2015). Sri
Lanka hosts a impulsive age structure which involves a wide age bracket of 25 to 54 years old
people who are basically dominating the country. In Sri Lanka around 42.6 percent of the
population is lying in the age bracket of 25 to 54. The wide part of the Sri Lank us lies on the
working population, so the idea of Baker's Delight to expand in Sri Lank will be effective for the
firm in attainment of higher growth and success, thus in the market of Sri Lanka working
population is high which could be resulted in developing opportunities for the business (Sri
Lanka Population 2019). The population of the Sri Lanka in 2018 is 20,950,041 that is one of
large proportion of the people resides in the whole world.
2.3 Market barriers and drivers:
For an industry while entering into new market they have to closely understand the
market barriers and drivers to remain always competitive by giving best products and services
(Griffith & Hoppner, (2013). In context of Baker's Delight they conduct the through research
and development to evaluate the major factors that hinders or foster the market while enter with
the Products of Baker's delight to remain always competitive that are as follows:
The Drivers:
The major drivers of the market of Sri Lanka are the high rate of GDP that helps to
enhance the per capita income of consumers to purchase one of best products and services. With
the support of World bank the government of Sri Lanka can be able to get the fiscal reforms,
improve the financial management and helps to enhance the both public and private support. In
context of Baker's Delight with the help of growing and high ratio of income of people they can
be in best manner operates in business environment to achieve desirable outcomes (Horner and
Swarbrooke, 2012). Apart for the tariffs, duties and taxes that are responsible to importer that
includes the excise duties, national building tax and special commodity levy and value added

taxes that are major factors to open new businesses in the market of Sri Lanka to compensate the
needs and wants of consumers in best manner.
The barriers:
While entering into new market organisation faces some kinds of challenges or barriers
that are as follows:
In Sri Lanka the inconsistent and unpredictable rules and policies that includes the
taxation, rules and customs with regulatory approvals while enter into the market of Sri Lanka
(Kolk, 2014). The another major issue that they probable faces that are lack of supply of
labour that hindrances the operations in the market of Sri Lanka as qualified workers majorly
lacks. Many business representatives states about the rigid labour laws that creates problems to
adjust the staff size and their composition to get right kind of outputs in an organisation.
3. Organisational analysis:
This report is based on the Baker's Delight which is an Australian owned franchise chain
of outlets that are locally operated in the new Zealand and Canada. It was established in the year
1980 as an single bakery store and now it has over 700 bakeries in all over the globe. They
always focus on producing products and services as per the consumers needs and focus on
enlarge the business opportunities in market of Sri Lanka to evaluate the each and every aspect
before operating in that market so that one of best opportunities can be reaped in positive
manner.
3.1 Customer Audit and Buyer Behaviour
The customer audit is one of the most crucial concept which helps in providing a
complete and real picture from the customer point of view (Berthon, Pitt, Plangger and Shapiro,
2012). Through this, the Baker Delight will be able to study the different perspectives and
requirements of the customers which will ultimately help them in introducing new fresh baked
product in Asian market particularly in Sri Lanka.
Criteria Explanation
Who The primary occupants of the new fresh baked products are the
children ranging between age group of 6-17, adults from age group
of 18-40.
The new Fresh baked products will be purchased by parents because

their children will going to love such food products and also
working people and youth who are involved in loving food.
The products of competitors are purchased by parents and working
people only because either they find superior quality in their
products or the prices may be low compared to Bakers Delights
products.
What The customer will get the benefit of healthiness as Baker Delight
will bring fresh baked product which will free from oil and deep
fries.
The factors which particularly influences demand include hygienic
and healthy products which will be good for health for all age group
people (Boone and Kurtz, 2013).
The function performed by new fresh baked product is that it
provides the benefit of healthy food which has low or no oil in it.
The important buying criteria relates to the quality and price of the
products.
The basic criteria which is to be used for comparing the product is
price.
The customer expects that they must know all the ingredients and
usefulness of the new fresh baked product.
Where The decision for buying the product has been selected as an offline
store of the Bakers Delight in Asian market specifically in Sri
Lanka.
The customers can get information on internet and official website
of the company as well.
The product will be purchased from store of Bakers Delight.
When The first decision which has been made to enhance the purchase of
the products has taken place when various people were becoming
health conscious and leaving the deep fried and oily bakery items.
The products was repurchased when it was liked by customers and

with their reference and word of mouth, more customers came to
purchase the product.
Why Customers buy these products because they are familiar with the
brand and have faith in the products because of higher quality of
products.
The customers are involved in selecting one brand over the others
because they consider that brand suitable for themselves and have
loyalty in the ingredients, hygienic and quality of that product.
How Customer buy such products by considering their manufacturing and
expiry dates, ingredients, packaging, etc.
This buying process last for 10-15 minutes.
The marketing mix has four different elements where product is a
fresh baked product which influences customers to become health
conscious. Pricing strategy is competitors pricing where the
customer is influenced as price of the product is kept lower than the
competitors (Casswell, 2012). The place is concerned with physical
store which influences customers that the products are really fresh.
The promotional tool will be advertisements on social media and
internet because customer uses that very much and they can easily
get information about the product over there.
Customer uses the product when they have to consume something
good with healthy ingredients.
The fresh baked products fits into their lifestyle when they will
become health conscious and start consuming only healthy items.
They are willing to spend on this product below compared to their
competitors.
In actual sense, they do spend less but when they get loyal to the
product then they can even spend more for this product.

3.2 4P’s:
The 4Ps of marketing consist of the factors involved related to the marketing of the goods
and services. In that includes the product, price, place and promotion of product and services to
remain always competitive in marketplace (Cavusgil and Cavusgil, 2012).. In context of Baker' s
delight they aimed to expand in market of Sri Lanka with the bakery products by enlarge
business opportunities in positive manner.
Product:
Product refers to the good or service that offer by the organisation to their consumers that
ideally should be build as per the consumers needs and demands in proper manner. In context of
Baker's delight the main product range of that brand are fresh baked goods. In their other
products includes the savoury, sweet, pastry, grain, artisan, white bread and fruits that helps to
satisfy the consumers needs and wants at broad level (Berthon, Pitt, Plangger and Shapiro,
2012). The key idea of expansion in Sri Lanka is based on the product range of fresh baked
goods in which the company is relays on daily production as the Barker Delight is concern over
launching new items that are fresh and will be distributed at regular basis.
Price:
Price is the total value spent by the customer to the seller against the good and
services they buy from the market. It is determined through adding the cost and expected
profit by the entrepreneur. They fixed prices that are affordable for families but on other hand
the prices are not at their lowest level. In expansion of business in Sri Lanka, the penetration
pricing tool will be effective as with the help of this strategy Barker Delight has keep low prices
at initial level and than increase the price after reaching at the higher position within market.
This strategy will support the firm in attainment of higher growth and also assist in attaining
competitive position within new market area. With that product become more lush and exclusive
in front of consumers by targeting products demographically basis to remain always competitive
in marketplace.
Place:
In context of Baker's delight has establish their channel of distribution channels for the
wholesale suppliers by giving base material that are used in the production process (Kreutzer,
2013). . Their stores of bakery are very much attractive and enchant their consumer base in
positive manner by giving proper knowledge and information regarding the products and

services to remain always relevant into marketplace. Sri Lanka is a developing nation which
mainly covers urban areas and the plan of Barker Delight to business expansion is effective in Sri
Lanka as the country has wide population which is beneficial for the firm in attainment of higher
growth and success. The company has planned to expand its operations in the area of Colombo,
thus it is the urban area which has wide population around 5,648,000 of Sri Lanka. This
particular area is more favourable for opening the bakery business as here demand for the offered
products by bakers pride will be more.
Promotion:
Promotion includes the advertising, public relations and promotional strategies to reach at
large no. of consumers to remain always competitive in marketplace. In context of Baker's
delight, the business has planned to expand its operation in new area and in this promotion is
required to gaining attention of people towards the firm or its offerings. In this particular
expansion the company is applying social media marketing tools to promote their facilities
within global market. With the help of television, radio and internet to target a particular base in
positive manner to build the brand name of the respective organisation to making the attractive
business purchase for a successful entrepreneur (Casswell, (2012) On other hand the community
and stores itself plays very major role of self advertising to gain the reputation by attending and
helping the charity organisation to reach at large no. of consumer base by contributing in CSR
activities that helps in create trust in front of consumers to remain always competitive in
marketplace. In that regards to promote and to reach at large no. of consumer base they use
various sources and tools to enlarge business opportunities. In context of Baker's Delight they
aimed to expand in market of Asia in Sri Lanka for that they primarily use the sales promotion to
draw the attention of consumers and then use advertising and promotions to enlarge business
opportunities in positive manner.
It can be said that marketing mix is one of most important tool to evaluate important
aspects in taking major decisions regarding while introducing or bring new features in the
existing product so that desirable objectives should be achieved in proper manner.
3.3 Competitor Analysis:
Competitors analysis refers to the evaluation the major strategies to determine the
strength and weaknesses related to the product and services of a specific organisation. The major
competitors of Baker's Delight that are Woolworths, coles, Brumby's and Banjo's that operates in

majorly all parts of the world by acknowledging the taste and preferences of consumers. The
fierce is the biggest competitor of Baker's Delight which majorly focus over satisfying the needs
and wants of consumers by offering product at lower prices. In addition to this it also work on
the all aspects of service practices in order to improve the shopping experiences of customers.
The competitive strength of Coles that is another competitor of Baker's delight which is they
have multitasking work force that is one of most valuable asset of them. By that factor they can
deliver one of best value to their consumers by accessing their needs and wants of consumers in
positive manner ( Lipsman and et.al, 2012). Another player from which the Baker's delight get
higher competition is 'The Cake Factory' which is one of the finest baker that capture higher
market share and customer base that can be a risk factor for the company. The positive factor
about The cake factory which provide it a competitive advantage in market place is that it has
majority of staff who are working from the beginning of this firm, hence the quality will remains
higher and equal in its product (The Cake Factory, 2019). Despite of this, it bake cake from
scratch using wholesome ingredients using loom recipes where the quality of food at baking is a
key. These are the basic factors which supported them in achieving the competitive edge at
marketplace. Hence, this competitors strengths must be consider by the Baker's delight before
entering into market so that proper strategies can be formulated for achieving sustainability and
market success.
3.4 Competitor Advantage of your Product (perhaps – the USP)
Competitors advantage is one of most important aspect for a business to remain always
competitive by giving one of best products and services as per consumer's choice and
preferences. The major strength of the Baker's delight is, they are unique in term of offering their
products and services within whole marketplace along with operating it in market of New
Zealand and Canada. This support them in occupying the largest market and profitability ratio to
get optimal outputs in positive manner. They have the unique method to bake and expertise in
that particular field that helps to be differ from their fierce competitors (Lasserre, 2017). The
Baker's Delight uses virtual bakers to showcase their core products which replicates the bakery
environment of sales staff visual to stay competitive in business world. The Baker's delight is
currently working over a strategy that help in enhancing the USP value of its products in which it
arrange a campaign every month where they promote a different type of item or a bread in their
stores. In addition to this it also offer free reward cards where with every purchase people spend

over $6 to get a stamp and after each 5 stamp they get a free loaf of bread. But in order to market
its Fresh baked product in market of Sri Lanka it is planning to offer fresh food which is being
cooked freshly every day and deliver it daily.
3.5 Positioning Map of Competitors
In today's competitive world to remain always competent it is very much necessary to
build right kind of strategies. It is obligatory for business to focus and adjust in the way business
is going. The major goal behind which is to position the brand or product in the minds of
consumers and prospects so that they become loyal consumers of the organisation. In context of
the Baker's Delight with the help of positioning they build one of best products and services as
per the consumer choice and preferences in proper manner. With the help of positioning map
organisation compare their products and services with their competitors products and services so
that major gaps in their performance can be easily eliminated (Lovelock & Patterson, 2015).. In
context of Baker's delight they are leaders in the market of bakery products and services on other
hand there are some attributes that distinct from them to their fierce competitors that are wools-
worth which particularly emphasise on compensating the needs and wants of consumers to
remain always consumer centric so that majorly focus present with the emerging needs of their
potential clients in positive manner. As per the positioning tool wools-worth focus on the high
quality of products at the lower price by using the advance techniques that lower down their
operating cost to remain always competitive in marketplace. With Coles that are another
competitor which also focus on high quality and low price that are very much important to
deliver right kind of products to the ultimate consumer base. With the help of that tool
organisation can be able to perceive the valuable factor that possessed by their competitors and
as per they build various kinds of strategies and tactics to implement in their organisation
(Cavusgil and Cavusgil, 2012).. So it can be said that respective tool proved beneficial for them
to gain important kinds of insights and knowledge to share important knowledge and information
to get competitive edge.

The given digram is effective in analysing the positioning map of competitors and the
depth evaluation is determined as below:
Niche Players: Niche player are those who are not implementing any kind of innovation
in their production and considered as the least competitor of the business. Market niches do not
exist through themselves but are implemented through determining the wants that are being
addressed by the rivals and offer products that are effective in satisfying the needs and wants
(Charter and Polonsky, 2017). For the Barker's Delight Wools-worth is the least competitor as
the company is not having proper vision or proper execution.
Challengers: Market challengers are those businesses which are tries to expand its
market share through aggressively overflowing the market through its goods at competitive
price. These are the non-market leader which are actively trying to moving ahead within a
particular industry. This sort of businesses are having high execution and less vision as the
production of such kind of organisations are high which makes their survival easy and effective.
Form the available competitors within market Coles is the challenger business for Barker's
Delight. These are considered to be the medium competitors of a business which affects the
operations in terms of production.
Leaders: Market leader can be a business, brand, product etc. it mainly refers as a firm
which has the widest market share in a particular industry (Quelch, 2017). Market leaders are
also having highest profitability ratio. Leaders are those which are having clear vision and proper

execution of operations as the growth and success of this sort of businesses are based on its
proper execution of operations that assist the firm in attaining their targets. For Barker's Delight
the Cake Factory is the market leader and considered as the key rivals of business, thus leaders
are having potential strategies or ideas to achieve success within the highly competitive market.
Visioners: Visioners are those businesses which are having clear vision and less
execution as the success of Visioners are based on the clear vision as the companies are based
on their vision and clear vision helps them out in attainment of success in their future. Baker's
Delight is the Visioners as the company is having clear vision and in innovative ideas that are
beneficial for them in achievement of growth and success in their future perspective.
4. Macro environment
Macro environment is an condition that exist as an whole not only limited to a particular
region or sector. In macro environment includes the existing trends, gross development
production, inflation, spending and monetary policies and many more to remain always
acknowledge about major deliverables (Lovelock and Patterson, 2015). It refers to the analysis
which is used in order to know about the impact of external environment on the working of an
organisation. There are many factors which are covered in this analysis and the impact of these
factors in Sri Lanka are presented as under:
Political Factors
These are those factors which impacts upon the working of an organisation due to
changes in the political stability of a country, employment laws, labour laws and many more. In
Sri Lanka, the positive policies of Foreign Direct Investment provides the Multinational
companies with a chance to set up their business and provide their services to the customers.
However, possible threats are because of the occurrence of terrorist activities impacting
negatively on the preference of companies to expand their business (Senft and Baym, 2015).
Economical Factors
These are those factors which impacts upon the working of an organisation due to
changes in the interest rates, GDP of a country, disposable income of customers, bank rates,
inflation, deflation and many more factors. In this factor, Sri Lanka had made some policies
creating threat for the companies such as the price control policy, avoidance of double taxation
from Bangladesh and the low disposable income of customers impacting negatively on the

businesses to set up because of low purchasing power of customer will impact upon the sales and
profit of the companies.
Social Factors
These are those factors which impacts upon the working of an organisation due to
changes in the tastes and preferences of people, faith, beliefs, feelings and many which impacts
upon the working of an organisation in both the positive as well as negative ways. People in the
country are educated and the literacy rate is also high which could provide the MNCs with good
workforce and better customers to whom they could sell their products and services.
Technological Factors
These are those factors which impacts upon the working of an organisation due to
changes in the ways of working, changes in the ways of producing goods and services or changes
in the technical equipments which impacts upon the working of an organisation in both the
positive or negative ways (Terpstra, Foley and Sarathy, 2012). So in this factor, Sri Lanka is not
performing good as these changes are not easily accepted by the country and due to this it will
also impact upon the working of companies and the employees. As the employees will also not
be able to create innovation in technology and accept those changes. So this is a possible threat
in the country which could be faced by the foreign companies trying to enter in the Sri Lanka's
Market.
Legal Factors
These are those factors which impacts upon the working of an organisation due to
changes in the governmental rules and regulations in relation to some specific business which
impacts upon the working of an organisation in either positive or negative ways. Mainly in the
Food Sector of Sri Lanka, there are some acts which have been enforced by the Government
taking into consideration about the health and safety of their people. So the non fulfilment of
these laws and regulations will make the company to face severe consequences.
Environmental Factors
These are those factors which impacts upon the working of an organisation due to
impacts which have been created by the working of an organisation on the environment such as
the emission of harmful gases, CO2, global warming and many more. However, the working of
Food Industry in Sri Lanka is not impacting much on the environment but the contribution made

by the companies towards environment will help in creating brand awareness and goodwill of the
company in the market.
So from the above discussion, it can be said that there is a need to make improvement in
the policies and procedures of the country so that it could become possible to attract more and
more companies and positive impact could be made.
4.1 Porter five forces model
Porter's five force model is one of most important analyst tool that helps to understand
the competitive business environment of the Sri Lanka (Sethna, Jones & Harrigan, 2013). For
evaluate competitiveness, organisation must focuses toward identifying the existing competition
in industry, barriers to enter, profit appropriating power of both buyers and suppliers with
substitutes goods that are produced in the environment. These all are the important factors that
must be evaluated by the an organisation to have an insights and knowledge for staying
competitive in marketplace. There are some important factors of Porter's five force model that
are as follows:
Factors Position
Internal Rivalry High
Barriers to entry Low
Bargaining power of suppliers Low
Bargaining power of buyers High
Threats to substitute High
Internal rivalry:
In internal analysis consist that many players existed in the bakery industry and the
competitors of Baker's delight only account for the 11.7% of the whole market. The internal
rivalry is very much fierce and characterised by the small bakeries. But it also consists of several
trends that are changing continuously and economies of scales are the important factor which is
increasing the level of competition regarding the price, quality and differentiation with in the
market of Sri Lanka. In market of the Sri Lanka the competitors of the Baker's Delight so much
existed that hamper the self interest of the organisation as well as individual.

Barriers to entry:
Barriers to entry in that particular sector is low that helps to Baker's delight to enter into
the market of Sri Lanka. In that regards the economies of scale are beneficial not required to
industry success. With the help of it small businesses can easily enter into the market with the
small amount of money (Doherty, Smith and Parker, 2015). In context of Baker's delight after
accessing the major factors of the market of Sri Lanka able to acquire the sufficient distribution
channel that cover operating cost and brand recognition with the loyalty to remain always
competitive in marketplace.
Bargain power of Buyers:
Major buyers of the bakery products are the customers who purchases from
supermarkets, grocery stores, hotel chains, convenience stores etc. Hence they have a power to
influence the profit of an organisation as they have large no. of options or alternatives available.
As they have power to influences the prices and volume of discounts that directly affect on the
organisational profitability adversely. As a result of which the customers of Baker's Delight have
the command over bargaining and keeping low price of product along with demanding for
discount over its offers. Hence the bargaining power of customers are relatively higher over the
Baker's delight.
Suppliers:
The bargaining power of supplier is relatively lower in bakery industry as the market is
very much developed and arranging for products are quite easier for organisations. Bakeries
product affected by the price swings of raw material on other hand changes in the global supply
chain that affect on their suppliers power (Terpstra, Foley and Sarathy, 2012). In the market of
Sri Lanka there are low level of negotiation of suppliers that hinders the objectives achievement
and deliver the right value to the ultimate consumers in positive manner. In that respect by
proper planning and coordinating desirable objectives should be achieve.
Substitutes:
There are kinds of substitutes products of the bakery that are breakfast cereals, rice and
potatoes that are one of alternatives and individuals to make the bakery products at home. Bakery
products depends on the price and convenience to switch to a substitute product (Katsikeas and
et.al., 2016). In context of Baker's delight people adopted kinds of product that are closely
similar to the other products and consumers can use it. So all these factors imply the major

factors to remain always competitive in marketplace. Sri Lankan market is one of most
competitive marketplace in every kind of business that affect the profitability of the Baker's
delight to remain always competitive in marketplace. With the help of unique features in their
respective product they gain sustainability and success in the marketplace.
4.2 Value Chain
Michael E. Porter introduced concept of a value chain analysis. Value chain is a business
model that shows full range of activities conducting by businesses to develop products or
services from idea generation to delivery (Lasserre, 2017). It includes raw materials, design,
production, marketing and distribution of these products and services. Value chain management
can be defined as the whole process of organizing and maintaining all activities in an
organisation in order to attain desired objectives. The main purpose of value chain management
in Bakers Delight is to increase production capacity by which company can deliver maximum
value for least possible cost and can create competitive advantage. In reference to Bakers
Delight, during its expansion in Sri Lanka it needs to follow value chain which helps them to
allocate raw materials and organize activities achieve targets. The activities of value chain
management are classified into two sections which are as:
Primary activities: Primary activities are essential for adding or create value that exceeds
cost of providing products or services, to generate profit. Primary activities are main source of
cost advantage, which guides to identify costs easily for each activity and management of
expenditure properly. Primary activities includes in Bakers Delight are such as:
 Inbound logistics: Inbound logistics can be defined as goods obtained from suppliers by
Bakers Delight and used them for producing end products (Charter and Polonsky, 2017).
It includes allocating resources like baking containers, ovens, microwaves etc. and raw
materials like floor, wheat, flavours etc. these are are supporting in the production of
fresh baked goods in effective manner.
 Operations: Operations are value-creating activities that changes inputs into final
products. In other words, raw materials and goods are converted into finished product. In
this baking operations of Baker's Delight are involved which are implemented by the
experienced chefs to cook a healthy bakery item.
 Outbound logistics: Distribution of finished goods is known as Outbound logistics. It is
define that once products are manufactured then they are finalise to be distributed to

different centres, wholesalers, retailers or customers. It involves activities which
distribute products to a consumer including warehousing, order fulfilment, etc. In the
operations execution of outbound Logistic in Baker's Delight the distribution of
production are taken places through the execution of transportation facilities.
 Marketing and sales: This involves marketing mix and strategies to target correct
customer group. Marketing and sales involves activities such as advertising, promotions,
distribution channels, pricing, sales force organisation etc.
 Service: Service refers to those activities which enhance consumer experience and
maintain products performance. In the context of the growth of Barker's Delight the key
consideration of the firm is to providing effective facilities and healthy products to their
final users in respect to retain them for long run of business operations. The is making
alteration in their offerings that are effective in gaining attention of people within
commercial centre.
Support activities: Support activities assist primary activities in an organisation to achieve its
competitive advantage. Support activities are generally denoted as overhead costs in company's
income statement. Bakers Delight includes support activities such as:
 Procurement: It defines how raw materials are obtained for production. Main focus of
procurement is to obtain best possible quality in their budget.
 Technological development: Technology can be used in many ways such as in research
and development, designing and development of new products and process automation
(Gillespie, 2015). For the success of business, Barker's Delight is required to implement
possible alteration in their technologies in respect to proper execution of operations.
 Human resource management: It includes activities which involves hiring, training,
compensation and retaining employees in an organisation. The management of Barker's
Delight is concern on maintaining existing and new staffs as the company has setup new
operations with the help of existing employees and hire new one from the locality of Sri
Lanka, who are very much aware regarding the choice and preference of people in Sri
Lanka regarding a bakery product (Lasserre, 2017).
 Infrastructure: In Bakers Delight there must be efficiently working department of
finance, legal structure and management structure which helps to attain its objectives.

4.3 BCG Matrix:
BCG Matrix is one of important planning tool that helps to build or portray the firms
brand portfolio or small business units by quadrant with relative market share axis and speed of
market growth to determine the important factors. In these four quadrants that classified the
brands of firm to elaborate the major indicators that are as follows:
Dogs:
Dogs are the important indicators that holds the low market share in comparison to their
competitors and deals in the growing market place (Charter and Polonsky, 2017) The major
factor after evaluation that it is not worth full to invest these kinds of businesses as they generate
low or negative returns for the business. But sometimes some dogs kinds of investment proved
beneficial for organisation to remain always competitive in marketplace. In respect of Baker's
delight they are aimed to invest the money and time on the products and services that are
relevant into marketplace by investing in the market of Sri Lanka which is worthful kind of
investment for their organisation as well as people who are associated with it. Products such as
White Block Loaf and Hi Fibre Lo GI White Block Loaf are considered as the Dogs because
they do not generate much case for the company but as they are sometimes purchased by the
customer and that's the reason to have this product by the company.
Cash cows:
Cash cows is one of most profitable brands and helps to provide as much as cash to their
business. The gained cash should be invested into the category of stars to get further growth in
the market (De Mooij, 2018) In that respect organisation not invest to induce the growth
opportunities but for maintain the existence state of profit. In context of Baker's delight they
always planned to invest in fruitful businesses that can help to build or maintain the existing
level of profitability. By investing in marketplace of Sri Lanka that are potential to invest in that
particular market to remain always competitive. The product which covers most of the part of the
revenue of the company is Challah Plait and the cost of making this products is also low. Due to
this reason, this product is considered as the cow for the company which will help in the income
generation of the company.
Stars:
Stars are the category that operates in the high growth industry by maintaining high
market share. Stars come in category of cash generators and users also. These are the kinds of

primary units in which the organisation invest their money by expecting that these kinds of
investments give positive cash flow returns. In context of Baker's delight they conduct proper
research and development in which they find out the major factors for collecting important
insights to get optimum level of outputs (Kreutzer, 2013). Looking on this aspect, Scones is the
product whose demand is increasing and could provide the Bakery with good incomes and
revenues that could help in the growth and development of the company. Additionally, with the
help of this product, it will be possible for the company to gain competitive advantage over their
competitors.
Question mark:
Question marks that require brands a much closer consideration that holds the lowest
market share in rapidly growing market to consume large amount of cash and incurred some
losses (Gillespie, 2015) It is fruitful to invest at right place and generate the huge cash. In
context of Baker's delight by investing in the right kind of market they certainly get high market
share with high cash generator to get potential outcomes. The product covered under Question
Mark is Hi Protein Wholegrain Block Leaf (Chia Seeds) which is, however, healthy food but
because of its ingredients the prices are high and the demand of this product is low. So it also
depends upon the purchasing power of buyers and availability of raw materials in order to make
the production of the company to decide bout whether to make the production of products or not.
In that regards summarised that Baker's delight is one of most important aspect to deliver
right kind of value by finding out major market and their potential outcomes. So it has been
concluded that Sri Lanka is one of potential market share to generate high level of cash to remain
always competitive in marketplace.
5. SWOT Analysis
SWOT Analysis on Bakers Delight
SWOT analysis of Bakers Delight defines strengths, weaknesses, opportunities and
threats of respective organisation. This analysis is used to specify objectives of business
enterprise and identify its internal and external factors that can be favourable and unfavourable to
achieve these objectives. As Bakers Delight is expanding its business in Sri Lanka, SWOT
analysis can help this enterprise to identify and understand those factors which can guide to
achieve success (Kotler and et. al., 2015). As well as those factors which can degrade its working

by performing various activities in business expansion and earning profits in Sri Lanka. Factors
of SWOT analysis are as follows:
STRENGTH WEAKNESS
 Expertise of bakers and genuineness of
baking methods can help this enterprise
to perform actively in expansion of its
business in Sri Lanka.
 Markets of Bakers Delight in Australia
and other places which are well
established guides to promote its
business in other countries also.
 Online ordering facility of Bakers
Delight can assist this to attract
customers of Sri Lanka to purchase
products in less efforts.
 Its separate menu of bakery products
for kids can make this bakery different
from others which will be helpful in
expansion and 'Gift Card' facility
enables people of Sri Lanka to gift
bakery products to their loved ones.
 It will be new in markets of Sri Lanka,
this can be biggest weakness for this
industry. This can take time to make its
place in bakery industry of Sri Lanka.
 Bakery goods such as breads, cakes are
perishable in nature, in starting of
business at new place this factor can
harm its processing (Crane,
Kawashima and Kawasaki , 2016).
 Higher prices for high quality products
during formation of new bakery in Sri
Lanka can affect its profitability.
 In expansion of its business in Sri
Lanka it can suffer from limited supply
of products and difficulties in shipping
goods from others countries or its
franchises.
OPPORTUNITY THREAT
 There is a scope for Bakers Delight to
expand its business in Sri Lanka with
different product lines (Cavusgil and
Cavusgil, 2012).
 It can focus on branding of kids
products to attract families and better
understanding the needs of customers
in Sri Lanka.
 Competitors at new marketplace can
affect its business as well as its
existence in marketplace.
 There can be various entry barriers for
Bakers Delight to make great existence
in marketplace of Sri Lanka. It has to
make large efforts and needs more time
to be at profitable stage in bakery

 Bakers Delight can host events,
promotional strategies and programmes
to promote its products and increase
sales.
 It can tie-up with hotels and restaurants
of Sri Lanka to increase its profitability
ratio and business in various sectors of
that country (Bahadir, Bharadwaj and
Srivastava, 2015).
industry.
 Government rules and regulations of Sri
Lanka can be unfavourable for Bakers
Delight to expand its business and
restrict it to attract customers to
purchase bakery products (Kotler and
Armstrong, 2013).
 Taste of customers can differentiate
from country to country. This will
affect expansion of Bakers Delight in
Sri Lanka and other countries also.
6. Conclusion
From the above analysis of the report it has been concluded that it is very beneficial for
the refereed to organisation to expand in the market of Sri Lanka as it offers wide variety of
opportunities for the business. Therefore business expansion is a most strategic step which is
effective for a business in attaining growth and success. From the analysis of the report it has
been analysed that market expansion in foreign market is beneficial for the firm in increasing
growth through capturing a wider new area. For effective expansion of business it is essential for
a business to implement suitable strategies or business tactics that assist the operations of
business in effective manner. From the analysis of the market in Sri Lanka it has been found that
it is a best place to expand a Bakery business as the population in Sri Lanka is high. With the
help of value analysis, porter's model organisation that evaluate the competitors analysis to get
important insights to deliver right kind of value to the ultimate consumers in positive manner.
Various tools and techniques are very important to effectively eliminate the emerging negative
effects while implementation of new tools and strategies.

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