Key Issues

The bakery industry has become so competitive hence the need to lower both production and distribution costs. The energy costs impact the industry hence the need to come with a strategy of reducing not only the cost of energy but also material costs. To compete effectively, other external factors have to be considered and effective measures applied to ensure that the company has a competitive advantage in this industry that has been facing extreme competition over the last few years. The Duchess can become queen if necessary market research is done to find out customer preferences and bake products that will satisfy the consumers.

Recommendations and Rationale

First, the company’s top management should consider making use of social media and website to post their products. The customers who will see the post are likely to look for the products in the stores. They should also partner will retail outlets to ensure that the products are always in stock to build customer loyalty. The company should not ignore the trends in the industry but should instead ensure that they have a variety of products for example for those who suffer celiac disease. They should be keen on ensuring that they are health sensitive and guarantee consumers that their products are incredibly healthy.

Secondly, the company should aim at reducing the cost of raw materials and production cost. This will be attained effectively if they market themselves enough to the extent that the demand for the products increases. If they bake a reasonable quantity of the products per day, then it means that they can purchase the raw materials such as what in bulk thereby cutting down the costs.

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