SWOT ANALYSIS of Aarogya Whole Wheat Bread

The internal as well as external analysis of the company are as follows:

Strength
1. Product Feature: Our product is enriched with the wholeness of the wheat i.e.
endosperm, bran and germ of a kernel. It has no added preservatives which makes it the
healthier option to other alternatives available.
2. Low Maintenance Cost: We don’t have our official outlet as of now. This has helped us
to focus on the qualitative aspect of our product. Following this, we have incurred low
operation cost.
3. Low cost advertisement: We have placed our product offering through social media i.e.
Instagram and Facebook for the initial years. This has lessened our advertisement cost
to the money we need to provide to internet service provider.
Weakness
1. Product range: For the initial years, Aarogya foods is just focusing on one product i.e.
whole wheat bread. We need to gain the market share through this product only.
2. Product Visibility: We don’t have any physical outlet. We’re offering our product
through social media which has overloaded information. Consumers going through their
feed might overlook the product. This results in us losing our potential consumers.
3. Consumer Conservatism: People have the tendency to buy the product which they can
see and feel. In Nepal, consumers are still reluctant in buying the products which are
offered online.

Opportunities
1. Health conscious lifestyle: More and more number of people are inclined towards
having the healthy lifestyle. People are turning towards healthier options. Our product is
the healthiest among the options that’s available in the market.
2. Expand the product range: We can dive into other possibilities for our business where in
we can produce whole wheat biscuits, Oats bread, Multi-grain bread with no added
preservatives. This further expands our customer base and increases the share of profit.
Threats
1. Replicable: Our product incurs low operation cost. Our formula for production is simple
yet effective which draws the interest among other producers. The low maintenance
cost and advertisement cost are the attractive source for the new entrants as well.
2. Substitute Goods: The biggest limitation for our business is when consumers can’t
differentiate our product from the product that is available in every local stores. We
stand by the fact that we don’t add preservatives in the bread but the consumers
 mightn’t understand the implication that preservatives bring in their health and the
health of their loved ones.

Aarogya Foods- Microenvironment

The players that determine Aarogya foods ability to serve the quality product to its consumers
falls under the microenvironment of the company. There needs to be the coordination among
these aspects to create superior customer value and relationship.
1. Suppliers: Our main supplier is the wholesale market for the whole wheat flour. We
need to pay attention the availability of flour and costs attached to it. Events like
shortages in their place, labor strikes affect our business both in short and long run.
Other suppliers include the departmental supply of yeast, salt, vegetable oil, honey and
water jars.
2. Marketing Intermediaries: We are the sole producers as well as the sellers to our
consumers. We stock our goods from our place and take them to the respective delivery
places to our consumers. Physical distribution firms are not included in our distribution
process as of now. But, for the years to come we hope to collaborate with other firms as
well. We have taken loan from bank and insured our company. Therefore, there is the
presence of financial intermediaries.
3. Competitors: Our direct competition is with the Herman Bakery as it also claims to
provide whole wheat bread. We also have competition with other bread providers like
Nanglo, Krishna Pauroti and Angan. We can gain our strategic advantage by positioning
our product features like freshly baked, no added preservatives, high fiber, no sugar,
eco-friendly packaging and home delivery services strongly against competitors.
4. Publics: Our company has workers and managers, internal publics, who are motivated
by the company’s vision to make everyone chose healthier option. Banks are our
financial publics. We have positioned our product among general publics as high value
medium price product.
5. Customers: We serve our customers ourselves as we don’t have separate distribution
channel. This has enabled us to know our customers better and build the relationship
stronger. Our product is consumed by households as well as businesses like hotels and
event management companies for consumption purpose.