Pan Boricua: Developing a Market Strategy for the Hispanic Market in the United States Harvard Case Solution & Analysis

Bargaining Power of Supplier: Low

The bargaining power of supplier in the bakery industry is low. It is low because there are lots of companies along with Pan Boricua, who are manufacturing Puerto Rican products. The industry suppliers have little or less control over the industry because customers are not so keen to pay extra for bakery items in the United States market.

Threat of New Entrants: Low

The threat of new entrants for the bread market is low. It is low because the margin in the industry is quite low and it is constantly diminishing. Along with this, high start-up cost is required to start the business. People in the industry are not keen to pay extra therefore the market of bread is quite unfavorable for new entrants.

Competitive Rivalry: High

The competitive rivalry among competitors is quite high. It is high because there is lot of local and international bread manufacturers competing in the industry. Along with this, export of bread ingredients also made the industry highly competitive. Manufactures of bread were offering reduced or low prices to gain competitive advantage in the industry.

Threat of Substitutes: Medium

The threat of substitute in the bread market is medium. They are medium because although there are quite a few products available as substitute for bread, but none of the present direct threat to the industry players. Some of the substitutes that are available in industry are cornflakes, cheese sticks and oat meals that can be a replacement for bread in breakfast.

Strategy Canvas

Strategy canvas basically provides a simple way of analyzing how competitors attract customers. This model gives us the idea of differentiating the products from that of competitors with various combinations.

Identify the competition

The competitors for Pan Boricua in the bread market include: Mi Pan Asociados, bimbo, Marinela, Tia Rosa, Wonder, Milpa Real, Lara, Suandy, Del Hogar, Lonchibon, Monarca, Tulipan and the Breddy.  These were the various different competitors in the market competing with the company Pan Boricua. Out of the above discussed competitors the main threat was Mi Pan Asociados. Along with this, retail stores that were directly competing with the bread manufacturers were the local retail stores such as Wal Mart, etc.

Identify the factors of competition

The basic reason for which customers come at Pan Boricua is because it offers similar taste bread that is an identity for the Puerto Rican products. Basically, what Pan Boricua does is that it imports products from Puerto Rico and it develops bread for the specific Hispanic and Puerto Rican community living in the United States market. Along with this, Pan Boricua competes on the quality of product they produce and develop market. Although, competitors  have lower prices and  prepare similar bread but the quality of their bread is lower than that of Pan Boricua. However, Pan Boricua is expensive bread while the competitors are less priced bread.

Evaluate the competition

Under this step, customers evaluate the product along the lines of different features and attributes that are preferred by customers. These factors include the quality of bread, different attributes and features offered by various bakery manufacturers. Pan Boricua has been quite keen to offer quality Puerto Rican bread and confectionary although they charge slightly higher prices than the competitors.

Chart your competitive differentiation

The competitors and Pan Boricua compete on various attributes that make them differentiate to one another in the industry. For example, price, quality, customized product, Puerto Rican bread and added features in the bread market are the competitive differentiation. This can be the competitive advantage for Pan Boricua moving outside the already established market places. Therefore, while entering new markets Pan Boricua needs to come up with better taste that is specific to the certain markets. In this way, the company can still remain competitive in and highly price sensitive bread industry.

FODA Analysis

FODA analysis is basically acronym of fortitude, opportunities, weaknesses and the threats. FODA provides the information that can help company to in fact measure all its resources and capacities over the competitive market. It has been helping a company for the market research and in the development of all the strategies of business growth that can help the organization further expand and grow in size. The FODA analysis for Pan Boricua is as follows:

Fortitude:

Pan Boricua has been doing quite well in the market. The good reputation of the company has been one of the fortitudes for the company. Along with this, the quality of bread and the taste of the bread has been a positive edge for the company. Pan Boricua has been the pioneer in bread market of United States that manufactures Puerto Rican bread manufactured products................................

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