Weetabix Business Strategy: SWOT and PESTEL Analysis Case Study

This case study provides a SWOT and PESTEL analysis of Weetabix, a leading breakfast cereal company, focusing on its potential business expansion into Singapore. The SWOT analysis identifies Weetabix's strengths (strong brand, healthy products), weaknesses (poor liquidity, image issues), opportunities (health awareness, technology), and threats (competition, climate change). The PESTEL analysis examines the political (stable environment), economic (GDP growth), social (health-conscious consumers), technological (growing internet usage), environmental (pollution concerns), and legal (supportive regulations) factors in Singapore, suggesting a favorable environment for Weetabix's growth. The analysis concludes that Weetabix can leverage Singapore's stable political and economic conditions, coupled with a growing health-conscious population and technological advancements, to enhance its business prospects, while also addressing environmental and competitive challenges. Desklib provides access to similar case studies and study resources.

SWOT and PESTEL analysis of
Weetabix

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Table of Contents
Introduction.................................................................................................................................................2
SWOT analysis of Weetabix.......................................................................................................................2
PESTEL analysis of Weetabix.....................................................................................................................3
Political factors........................................................................................................................................3
Economic factors.....................................................................................................................................3
Social factors...........................................................................................................................................4
Technological factors..............................................................................................................................4
Environmental factors..............................................................................................................................4
Legal factors............................................................................................................................................4
Conclusion...................................................................................................................................................6
References...................................................................................................................................................7

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Introduction
The primary purpose of the paper is to evaluate the SWOT analysis of the Aplen Cereal Bar
Company Weetabix. Furthermore, the analysis will provide a brief description of the firm
position in the market. Moreover, the paper will also demonstrate the PESTEL analysis of
Weetabix in Singapore.
SWOT analysis of Weetabix
The SWOT analysis of Weetabix an Aplen Cereal Bar Company is as follows:
Strengths Weakness
 The cereal bar company Weetabix is a
leading cereal brand in the UK
 The brand possesses a long-standing
well-known UK customers
 The products are mainly healthy and
organic with low sugar and high fiber
 Their supply chain is vertically
integrated
 The company has the strong portfolio
 Failed in designing their overall
company image
 Quality issues generate due to poor
management procedure
 Possess poor liquidity
Opportunities Threats
 Enhancement of customer’s awareness
of eating healthy food
 Development of technology increases
the brand growth
 Foods market are continuously
growing in the current trend
 The huge number of competition in
the market like Kellogg's, Quaker oats
and so on
 A growing percentage of customers
are skipping healthy food products
 Changes of climate may damage the
products
 Increases in price

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Analysis
Weetabix is one of the leading breakfast cereal manufacturing company in the United Kingdom
and this brand possess a well-known consumer. In the current trend people are fond of eating
healthy as well as organic produce and thus this firm possesses a stronger portfolio in the market
(Fiore, Stašys, & Pellegrini, 2018). Apart from this, it is noticed that people are more aware of
being healthy so it enhances the current food market. Besides all of these strengths and
opportunities, some weakness and threats of this firm are also analyzed. One of the major
weakness of this firm is that it possesses poor liquidity and thereby they failed in designing their
image in the market. In addition, intense competition affected their business growth and due to
this huge percentage of customers are not willing to buy their products (Weetabix Cereals:
Wholegrain tasty goodness, 2018). From this analysis, it can be said that the company must have
to incorporate new strategy so that they can easily avoid such problems in their future.
PESTEL analysis of Weetabix
Political factors
Singapore is considered as an effectively a single-party state and thus according to the Political
and Economic Risk Consultancy (PERC), the country possesses lowest political risk in
concerning to the other countries of the world (Khalid, 2016). It is one of the democratic country
and thus they have political stability in their government procedure. This political stability has
translated the country into peace and the better standard of living which thereby improved the
business opportunities for other international firms. Hence it is clear that Weetabix can easily
improve their business growth in this country due to its high political stability.
Economic factors
The economy of Singapore has developed at a very fast rate and it is noticed that the Gross
Domestic Product (GDP) in 2016 was SGD 402.17 billion which has increased to SGD 410.272
billion in 2017 (Ibrahim, Mukhtar, Ibrahim, & Lyocks, 2016). Hence from this growth, it is clear
that this Weetabix Company can easily enhance their business growth in the market. In other
words, it is one of the most competitive countries and it supports a corruption-free environment
in their business sector. Therefore, both these factors also suggested that the decision of
establishing the business by this cereal company help them a lot to increase their market growth.

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Social factors
The social development of Singapore is mainly provided by the Government social welfare
services and they follow a strong traditional family value. While it is seen that the younger
generation of this country has a tendency to follow western values and culture respectively
(Goncharov, 2016). In other words, the country literacy rate is quite higher which enhances the
business sector to expect higher buying power from their consumers. Thus from this social
factors, it can be said that the firm Weetabix can easily expect a higher purchasing power as most
of the people in this country is fond of eating healthy products.
Technological factors
The technology of this country is still improving and in current days the internet played a
significant role in developing their technological advancement. Due to this growing trend of
technological development both the time and cost of conducting business goes to a lowered
track. For improving the technological condition the government mainly boosted the social
networking procedure so that it helps the business industry to grow faster in this country
(Mohamed, Rangkakulnuwat, & Paweenawat, 2016). Hence for this growing social networking
procedure, it helps this Weetabix Company to enhance their online marketing procedure which
thereby enhances their business growth in this country.
Environmental factors
In Singapore, the Anti-Pollution Unit and the Ministry of the Environment both works
simultaneously to maintain the air quality and other environmental factors. The country has a
high pollution rate from transportation which is considered as one of their key environmental
problems. In other words, the country possesses a scarcity of water resources and for controlling
the water quality both the Drainage Act and Water Pollution Control board work harder
(Mawejje, & Nampewo, 2018). In spite of these water supply problems, the business industry
does not affect so much and this reason help to grow this cereal company Weetabix in this
country.
Legal factors
The legal factor of this country are quite strict but the legal rules and regulation provides a great
support in economic growth and also in industry development. The government mainly think of
growing the electronic commerce industry so that it enhances the business development in this

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country (Govender, 2017). The basic laws and policy used in this industry sector help the firm to
grow their business growth in the market. Hence from this view, it is clear that Weetabix, the
cereal company can easily enhance their business profit in this country in concerning to the
government rules and regulations of the industry sector.

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Conclusion
The paper concluded that Weetabix is a breakfast cereal company which possess a stronger
portfolio in the UK market and the firm was going to start their business in Singapore. For
developing their business in Singapore, a PESTEL analysis has done which suggested that the
firm can easily enhance their business growth in this country without facing any high level of
difficulty.

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References
Fiore, M., Stašys, R., & Pellegrini, G. (2018). AGRI-FOOD SUPPLY CHAIN OPTIMIZATION
THROUGH THE SWOT ANALYSIS. Management Theory and Studies for Rural
Business and Infrastructure Development, 40(1), 28-36.
Goncharov, S. V. (2016). Cereals breeding & seed business in Russia: Current development and
prospects. Poljoprivreda I Sumarstvo, 62(1), 99.
Govender, K. K. (2017). Brand choice and brand switching: a case study of relocated
consumers. African Journal of Economic and Management Studies, 8(4), 441-461.
Ibrahim, U., Mukhtar, A. A., Ibrahim, F. B., & Lyocks, S. W. J. (2016). Assessment and
Management of Used Pesticide Containers from Farm Lands in Kaduna State,
Nigeria. The Journal of Solid Waste Technology and Management, 42(4), 272-277.
Khalid, S. M. N. (2016). Food safety and quality management regulatory systems in
Afghanistan: Policy gaps, governance and barriers to success. Food Control, 68, 192-199.
Mawejje, J., & Nampewo, D. (2018). Food prices, money growth, and informal cross-border
trade: evidence from Uganda. African Journal of Economic and Management
Studies, 9(1), 72-87.
Mohamed, A. A., Rangkakulnuwat, P., & Paweenawat, S. W. (2016). Decomposition of
agricultural productivity growth in Africa. African Journal of Economic and
Management Studies, 7(4), 497-509.
Weetabix Cereals: Wholegrain tasty goodness. (2018). Weetabix.com. Retrieved 30 September
2018, from http://www.weetabix.com/