Greggs PLC
Greggs plc (LSE: GRG) is a UK based organization that specializes in the production of savory products such as vanilla slices, bakes, sausage rolls, doughnuts, and sandwiches (GREGGS, n.d.). It is currently the largest bakery chain in the region and is listed on the London Stock Exchange (LSE). The company has been performing well over the years, since the first outlet was opened in 1951, achieving immense growth and performance. Currently, the company has more than 1500 outlets that sell its products. In addition, some of the company’s products are sold through supermarket chains. Over the past ten years, Greggs plc has been expanding its business operations, opening up coffee shops, drive-thru outlets, and running a delivery service. Despite the company’s success, it still faces various challenges in today’s dynamic business world. Increasing competition and climate change have been the major challenges for the company in recent years, with more bakery chains opening up in the UK and pastry chain sales being affected negatively by extreme weather conditions (Edwards, 2018).
SWOT Analysis
To investigate the position of the company in the market, a situational analysis is necessary. The SWOT Analysis tool is effective in the evaluation of an organization’s internal and external environment (Porter, 1980). The following is the SWOT analysis of Greggs plc:
Strengths
Greggs plc is well-known for its outstanding performance in new market regions. The company has built its business empire by entering new markets and achieving success in them. The company’s strategies enable it to achieve success in new markets. Greggs also has a successful track record in the development of new products or innovation, having developed various new products and services including drive-thru shops, coffee shops, and introducing a delivery service. The company also has a good efficient distribution network that enables it to reach a wide market region. Through service and process automation, the company has been able to achieve consistent product quality and to meet market demand.
Weaknesses
Greggs plc’s organizational structure is only compatible with the company’s present model of business. This limits the company’s performance in other product segments, limiting company growth. The company also needs to increase investment in it’s the latest technologies and in research and development activities, to ease expansion into new markets and different geographies. Through the integration of technology in operations, the company will achieve greater efficiency and a competitive edge over its competitors.
Opportunities
Expansion into the global market is a huge opportunity for the company to achieve more growth and business success. With innovations in transport and logistics, lower product shipping prices may be an opportunity for the company to bring down the cost of its products, boosting sales and profitability. Greggs plc may also benefit from new customers from the delivery business and online channel. Changes in consumer tastes and preferences provide an opportunity for the company to open up new markets and revenue streams.
Threats
Increased competition from companies such as Finsbury Food Group and Food Genius is a key threat to the company. New technologies that are developed by competitor companies threaten the performance of Greggs plc in the long run. Product imitation is also a threat that the company needs to address to safeguard its reputation. Increasing strengths of the local distributors in the UK region presents a threat to the company as competition increases. The threat of currency fluctuations also exists in the global market. The company can utilize its strengths to overcome its weaknesses and minimize the threats identified.
