Environmental Analysis
Every business survives in an environment that they have first to understand. MySweetTooth is an essential business in the market that has established itself over the years it has been in existence. Understanding its market is a necessary step towards appreciating its growth.
Demand and Demand Trends
The company operates in Ontario, which is among the major markets in the United States. Ontario is a city that is made up of a total population of approximately 14.7 million people as per the last census. The market for the product is about 3 million people, which translates directly to around 450 million dollars’ worth of a market. All this has been courtesy of the growth experienced by the company over the years. The size of the demand comes from the population of Ontario and the daily activities involved within the business circle.
The company is expected to have a market share of approximately $40 million. This comes from the growth pattern of the business and the fact that it is not yet a household name within the region. It is a fast-growing business, but before it can have a massive share, it needs to develop a profile within this market. For this to be possible, the company will have to establish a future that surrounds itself with the proper structures in place.
As a company, they have invested more in online marketing to increase their market share currently. Their principal interest is to specifically develop into a bigger brand with a market share of around $100 million. The current market share is substantial, considering the operating costs involved, which means that they are ripe for profits of approximately 19 million dollars per year.
To get to these levels, the company has invested explicitly in new cake and bread recipes to reach their targets. The company has a specific plan to ensure that they become the most treasured brand in the market. Additionally, it is most important to grow through the time and serve the market with the needed innovations in terms of the kind of cakes they are served within this said market as such. The market prefers to change individually on different cake designs; this is precisely what MySweeTooth has invested in to position themselves ahead of the other businesses in the market.
Socio, Cultural, and Demographic Factors.
The first factor is the location of the business, which strategically positions it for success in the industry. The breakfast is located at 301 Main St W, Hamilton, ON L8P 1J7. This is the mainstream, meaning that more customers directly access it without challenges. For most businesses, it is essential to ensure that they have a proper location where customers can see them quickly and move in. In the food and bakery industry, it is easier to survive this because companies are looking to have their products on display first before they can gain customers. Since the business already has this advantage, they are more likely to succeed in the market.
The tendency of people to try out new commodities is a cultural factor that works in favor of MySweeTooth. In Ontario, most people tend to look for new products in the market. The bakery is one that is known for such trials, hence works in their favor because they give the market something to anticipate for every time. Through the years, they have developed because they always keep the market expecting a new recipe of the commodity.
Language as a social factor is associated with the success of MySweeTooth. Existing in a community that 95% English speaking is an added advantage towards the success of the business. By so doing, it means that the company truly understands the value such a connection with the market expects. Additionally, the industry has been able to develop over the years because their advertisements are made in the most local slang that people can understand. Their advertisement language on Instagram is equally the simplest to understand. Additionally, the market can truly understand what is marketed and choose whether to consume or not at this stage.
Economic and Business Conditions
The first financial condition is the fact that the company has sufficient capital to survive. Additionally, the business needs to grow into a better structure, and this has to be done through pumping in more funds. As a company, most of the profits recorded at the end of the year is usually reinvested back as capital to the central business. All this has been best done by ensuring that there are better structures in the market to develop and put in the money required for the company to grow.
Good infrastructure is another business condition shown by the said region. Throughout the period, the company has always enjoyed the excellent infrastructure in place. The infrastructure is both from the government, which is in terms of the right roads and social amenities. Additionally, the business is also enjoying good business infrastructure such as the existence of UberEats which has been structured to ensure that they can be able to deliver their commodities to the market efficiently. With an excellent foundation, the cost of production and distribution is lesser hence increased chances that the business can solely focus on delivering the required quality to the market. With all these factors in existence, it is easier for the company to structure itself properly in the market.
Competition
This business faces immense competition in the current market. The game is divided into both primary and secondary.
Primary Competitors
The first competitor in this market is Bonanza Bakery, located at 100 Murray St E, Hamilton, ON L8L 3G4, Canada. The bakery has an average of ten employees who are in charge of making different cakes for the market and loaves of bread. They are currently open from 8 am-4 pm. As a business, they have established themselves as a significant brand in the market to the extent that they are currently considered a vital force in the industry. The company has a market share that is valued at approximately $3 million. They have an established relationship with their customer base. They offer their online deliveries for commodities at doordash.com. As a bakery, their significant investment is in cakes and pieces of bread though they are well known in Ontario for their pies. Bonanza Bakery’s contact is +1 905-529-2227, and they are always available every moment within which the shop is open. They have a plan to expand as well and make it to a market share of approximately $20 million shortly.
Another competitor in the market is Lina’s European Pastries. The enterprise is located at Jackson Square. This is a very strategic location for the business. Their main areas are the pastries and cakes. They have a considerable share when it comes to the production of buns and hotdogs. As a formidable business, its market share is approximately $10 million currently. They have been in the industry for a while and have developed into a household name within the market. Their primary mode of advertisement is a social media advertisement where the challenge has always been how to get to the new customers. Their competitive advantage in the market is the customer loyalty that they have established over the years. Most of their clients do not tend to shift hence the reason behind their massive success in this business line.
The last competitor is Weil’s Of Westdale Bakery. The bakery is specifically located at 981 King St W, Hamilton, ON L8S 1K9, Canada. As a business, they are well known for their production of cakes and being in the industry for this while, and they have also become a renowned brand all over the region. The bakery has always established itself as a functioning business coming from the need to expand as years go by and their idea of becoming the best brand that has existed in the market for the long term. The enterprise has 12 employees in charge of business operations. In terms of the market share, the company is entitled to approximately 13.5 million dollars. The amounts are reasonable for the business to claim itself as a significant threat to other companies within the same industry. Additionally, the company has a long-term goal of becoming the household brand, which makes them a total threat from the onset.
Conclusion
Understanding a business environment is very important, more so when it comes to relating the same knowledge to the success of the business concerned in general. Additionally, it is an essential step for the company to maintain its growth pattern if it is to become a better chain worth of quoting. Ambitious companies are always at the forefront of ensuring that they create the right environment for their growth. As a result, MySweeTooth is in the right environment for growth and has the best structure that would lead to its long term market take over.
References
Akhmetshin, E., Danchikov, E., Polyanskaya, T., Plaskova, N., Prodanova, N., & Zhiltsov, S. (2017). Analysis of innovation activity of enterprises in the modern business environment. Journal of Advanced Research in Law and Economics, 8(8 (30)), 2311-2323.