BUSINESS ANALYSIS

SWOT Analysis

SWOT analysis is the identification and evaluation of a firm’s strengths, weaknesses,

opportunities and threats. Here are the evaluations of our company.

Strengths

1. Creative

We use our imagination and creativity to do what is considered impossible by most

people. All the cupcakes’ decoration come in variety with customers’ preferences.

2. Special ingredients

We only use the best of natural ingredients to deliver a unique flavor rather than using

artificial ingredients. The secret of our taste and quality is in the superior quality of

our ingredients that allows us to make the best cupcakes in the country.

Weaknesses

1. Price sensitive for rural customers

Some of our customers in rural area come from lower income group and cannot afford

to purchase our product.

2. Unwell-known

Since Munch Cupcake is a new company in the industry, our product is still unknown

by people and sales are not encouraging.

Opportunities

1. New technologies

With the latest technology, we can reduce the human labor and substitute with

machines. This will increase the production of cupcake and speed up the production

rate.

2. Improved infrastructure in rural area

The improvement of infrastructures in rural area for instance, more new shops and

road make us easier to deliver our product to be consumed by rural customers.

Threats

1. Competitors

Current and potential competitors are major threats for our Munch Cupcake. Many

cupcake shops have been opened and this will increase the competition.

2. Rising sales of substitute product

Our sales have been declining lately because bread has substituted our cupcakes and

decrease the demand of our product.