Introduction The founder of Wooden Bakery, the eminent bakery store located in Lebanon is in the process of deciding whether it was the right time for his company to pursue some market opportunities in Northern America through some major states of the US. Illinois and Chicago are the potential locations under consideration owing to their richness and diversity. The store’s board of directors is to meet and make a decision that would either translate to the success of the store or complete failure. Using external case analysis frameworks, a case analysis is done based on the strategic issues and challenges following this situation.
PESTEL Framework
Political Issues The political situation in Syria has presents the Lebanese bakery industry …show more content…
Moreover, wheat prices significantly fell in the past 2 years. Since June 2015, wheat prices have fallen 34% YTD. This surely had a positive implication on the raw materials cost of the bread manufacturing line.
Sociocultural/demographic Issues Lebanese pita bread was and still is the chief staple of the world-famous Lebanese cuisine. Pita bread is usually served as a complement to several main dishes. The interesting part about pita bread it is usually consumed during all three daily meals. It has been estimated that a Lebanese family of four to five members on average consumed a pack of bread per day. It is also important to note that bread is broadly consumed across the country, irrespective of residential area or income level. Although there exists no demographic trends, the population distribution in Lebanon resulted in regional and territorial strongholds for different companies, even in the bread industry. For example, Wooden Bakery’s stronghold was the Mount Lebanon governorate, where 25 of its 32 branches were located, while one of its main competitors, Chamsine, had a stronger presence in South Lebanon and the Beqaa Valley, two other large …show more content…
There are a few large firms and many small ones: Chamsine Bakery, Moulin D’Or, and Pain D’Or.
Industry growth: We are in periods of high growth Wooden Bakery and the above-mentioned competitors control around 40 per cent of the Lebanese bakery market. Other regional producers and small bakeries in villages and towns control the remaining 60 per cent. Some of those companies are Farhat in South Lebanon; Al Wafaa in the southern suburbs of Beirut; Baydoun in Ashrafieh Beirut; and Green Lebanon in North Lebanon, Yammine, Keyrouz, Dagher, and Al Omara. The influx of refugees during the years leading up to 2015 had contributed to the rapid growth of some of these bakery chains.
Chamsine: primarily focused on the production of traditional pita bread and ka’ak, which constituted the primary source of Chamsine Bakery’s competitive advantage, unlike its competitors, who had more-diversified product offerings
Moulin D’Or offered differentiated products such as Lebanese and French bread, ka’ak, pastries, and catering service as well as its outstanding customer
PESTEL Framework
Political Issues The political situation in Syria has presents the Lebanese bakery industry …show more content…
Moreover, wheat prices significantly fell in the past 2 years. Since June 2015, wheat prices have fallen 34% YTD. This surely had a positive implication on the raw materials cost of the bread manufacturing line.
Sociocultural/demographic Issues Lebanese pita bread was and still is the chief staple of the world-famous Lebanese cuisine. Pita bread is usually served as a complement to several main dishes. The interesting part about pita bread it is usually consumed during all three daily meals. It has been estimated that a Lebanese family of four to five members on average consumed a pack of bread per day. It is also important to note that bread is broadly consumed across the country, irrespective of residential area or income level. Although there exists no demographic trends, the population distribution in Lebanon resulted in regional and territorial strongholds for different companies, even in the bread industry. For example, Wooden Bakery’s stronghold was the Mount Lebanon governorate, where 25 of its 32 branches were located, while one of its main competitors, Chamsine, had a stronger presence in South Lebanon and the Beqaa Valley, two other large …show more content…
There are a few large firms and many small ones: Chamsine Bakery, Moulin D’Or, and Pain D’Or.
Industry growth: We are in periods of high growth Wooden Bakery and the above-mentioned competitors control around 40 per cent of the Lebanese bakery market. Other regional producers and small bakeries in villages and towns control the remaining 60 per cent. Some of those companies are Farhat in South Lebanon; Al Wafaa in the southern suburbs of Beirut; Baydoun in Ashrafieh Beirut; and Green Lebanon in North Lebanon, Yammine, Keyrouz, Dagher, and Al Omara. The influx of refugees during the years leading up to 2015 had contributed to the rapid growth of some of these bakery chains.
Chamsine: primarily focused on the production of traditional pita bread and ka’ak, which constituted the primary source of Chamsine Bakery’s competitive advantage, unlike its competitors, who had more-diversified product offerings
Moulin D’Or offered differentiated products such as Lebanese and French bread, ka’ak, pastries, and catering service as well as its outstanding customer