Supplier
&
Competitor
Objectives
Table of Analysis
Content SWOT Analysis
Critical Success
Factors
Issues &
Recommendations
Conclusion
Objectives
To investigate the importance of developing good
relationships with both suppliers and buyers in
maintaining business operations.
To ensure effective and efficient supply chain
management being exercised.
To have a better understanding in identifying, recognising
and analysing competitors in the industry.
To determine strengths and weaknesses of competitors by
developing SWOT analysis.
Factors FFM GRAINS & MILLS SDN BHD
selecting INTODUCED BY FFM BERHAD'S AGENT
suppliers 20 YEARS RELATIONSHIP
Higher Quality Raw Materials
Flour do have significant effect on
the occurence of bread
Stock availability
Produce a miling capacity of 2,820
metric ton
Supply Chain
Management
Market
Competitor
Analysis
Competitive analysis in marketing
and strategic management is an
assessment of the strengths and
weaknesses of current and
potential competitors
Aspect in
Jempol Bakery Roti Abdul
comparison
Roti Krim (RM 3), Roti Krim dan Kaya (RM 3), Roti Kelapa (RM 3), Roti John (RM 7.20), Roti Burger Bijan
Product and Roti Kacang (RM 3), Roti Coklat (RM 3), Roti Kentang (RM 3), Roti [(40’ RM 8.70), (10’ RM 2.40)], Roti Burger
price Manis (RM 3), Butterscotch/Sarang Lebah (RM 6) and Roti Paun (10’ RM 2.10), Roti Oblong (RM 4.20) and
(RM 2.50) Roti Sosej (RM 2.10)
Products are manufactured for
Products are mainly produced for customers’ day to day household and local shops for
Distribution
consumption and to be distributed to owned and other stores commercial consumption and also
of product
as well as through orders made by the locals made for small businesses who pursue
burger stalls
Marketing Jempol Bakery is not actively making marketing activities Roti Abdul too is not operating frequent
activities and relying on strong customer base marketing activities
Porter's
Five
Forces
Model
Porter's Five Forces is a business
analysis model that helps to
explain why different industries are
able to sustain different levels of
profitability
Threat of new entrants
A bakery has to have huge industrial ovens that are able to bake over hundreds of pound bread at once. It also
requires additional heavy duty machinery for dough mixing, preparing various fillings and packaging them.
Therefore, the barriers to new entrants are regarded to be high.
Bargaining power of suppliers
The supplier does not exert any substantial bargaining power over his business by threatening to increase prices or
degrade quality. Encik Abu further explained that his supplier will sometimes notify him in advance if he was
informed of the potential increase in raw material price. Therefore, there is a low bargaining power of suppliers
experienced by Jempol Bakery.
Bargaining of customers
The customers do not have the ability to compete with the supplying industry that is able to put Jempol Bakery
under pressure. There are several other bakeries throughout Jempol that offer similar products at low prices which
give plenty of choices to fellow customers in making their purchase. Thus proving to us the bargaining power of
customers is considered to be as low.
Threat from substitutes
There is an availability of other products that a customer could purchase from outside an industry that offer a
reasonably close benefits match at a competitive price. Roti Abdul is the closest competition that is offering
multiple products such as ‘Roti John’, ‘Roti Oblong’ and ‘Roti Frankfurter’ that could easily make a perfect substitute
for bread. Therefore, we agreed that the threat from substitutes is viewed to be relatively low.
Rivalry among current players
Roti Abdul is the closest competitor selling almost similar products to Jempol Bakery. Encik Abu admitted not
putting as much attention to his competitors around him as the bakery is currently operating at full capacity.
However, Encik Abu does prioritise the quality of his products and the feedback given by his customer. Upon
complaint, Encik Abu will instantly take corrective actions. In conclusion, there is no presence of stiff rivalry
experienced by Jempol Bakery.
SWOT analysis
SWOT analysis is a strategic planning and strategic management
technique used to help a person or organization identify Strengths,
Weaknesses, Opportunities, and Threats related to business competition or
project planning
STRENGTH WEAKNESS
Loyal customers Depending on a single
High-quality products supplier
Well-managed supplier
relationships
OPPORTUNITY THREAT
Positive feedback from Rising costs of raw
customers materials
Import low-cost
The shift of customer
technology
Bread is favored and demand towards a
accepted by the public healthier lifestyle
Critical Success Factors
01 Relationship with supplier
02 Increased customer satisfaction
03 Higher quality menu items
Issues &
Recommendations:
Supplier
Issue 1
HIGHER COSTS FOR CONTRACT
NEGOTIATION, PROCESS
MANAGEMENT AND EXECUTION
DUE TO CURRENT ISSUES
Food crisis season
High costs and shortages of
supplies
Suppliers and sellers
experience the burden of
Recommendation : Reduce raw materials waste
increased pricing
Issue 2 RECOMMENDATION
Single suppliers may be struggling Using multiple sources of supply
to meet all the company's needs
Sole source: FFM Grains & Mills Sdn. Bhd Advantages:
Drawbacks of this technique: 1. Less dependent on any one supplier
1. Increased risk of supply disruption 2. Provides a safety net in the event that a
2. Increased reliance on the source. supplier has problems
Issues
&
Recommendations
COMPETITOR
RECOMMENDATION
ISSUE Conduct
inattentive to giving competitive market
attention to analysis
industry
competition
CONCLUSION
possesses a wide variety of capabilities
solid working relationship with its supplier
good relationships with their rivals
does not pay sufficient attention to the rivals
THANK YOU !