3a Case Study

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Vicky Padillon 3A

CASE STUDY

Research, surf, compare and analyze the ERP systems used by the following sets of
companies by performing SWOT and comparative analyses.

Nestle Vs. Coca Cola


SWOT Analysis Of Nestle

Nestlé S.A. is the world’s leading nutrition, health and wellness company based in Switzerland. It is
the largest food and beverage company in the world measured by revenue generating CHF88.785
billion or US$89.772 billion in 2015 alone.

Nestlé sells 2000 different brands over 7 food and beverage categories. The company’s main
products are: powdered and liquid beverages; milk products, ice cream; confectionary and pet care
products.

It owns several major consumer brands such as Nescafé, Nestea, Nestle, Purina, KitKat and Vittel,
including many other prominent brands.

STRENGTHS

 Unmatched research and development capability


 Strong geographic presence, with one of the best geographically diversified revenue sources
 Unrivaled product and brand portfolio
 Environmental sustainability efforts
 Ownership of some of the most recognizable brands in the world
 Clear and accurate labeling indicating of any harmful products
 Transparency in material sourcing
 Growing number of small Silicon Valley based food startups
 Growing ready-to-drink (RTD) tea and RTD coffee markets

WEAKNESSES

 Criticism over high water usage, selling contaminated food, anti-unionism, forced child
labor and using other unethical practices
 Contaminated food recalls
 Poor quality water and its scarcity
 Increased competition in the beverage and food industries
 The price of coffee beans could significantly rise due to major weather disasters

OPPORTUNITIES

1. Clear and accurate labeling indicating of any harmful products

According to the study done by Delloitte,] consumers are more likely to buy products that are
clearly and accurately labeled. Almost 62% consumers are more likely to choose products that
are free of any harmful products. 51% of the surveyed said that their decisions will be
influenced by clear and accurate labelling and 47% would like to see clearly displayed
information.

Nestlé, which has a history of providing misleading nutritional information on its labels should
improve its practices and clearly label the products and include all the necessary information in
addition to nutritional values

2. Transparency in material sourcing

Consumers are becoming more and more conscious of where the food came from and how it
was grown or made. Many young consumers are placing sustainability as an important decision
making factor when buying their food. Social responsibility of buying ethically grown,
sustainable foods is often more important that price.

Nestlé could start sourcing all of its materials from sustainably grown plantations and farms.

3. Growing number of small food startups

There is a growing number of food startups that are looking for ways on how to disrupt the food
industry. According to CB Insights,[8] food startups raised nearly US$5.5 billion in 2015,
indicating a significant support for the food startups. These new startups are developing the
next generation foods and drinks, provide various solutions on food delivery, new meal kits,
specialty foods and introduce new ways to grow and sell the food.

4. Growing ready-to-drink (RTD) tea and RTD coffee markets

According to the Beverage Marketing Corporation Report,[9] RTD coffees is the fastest
growing liquid beverage sector in the U.S. for the last 3 years. While the whole beverage
industry grew only slightly, RTD coffees grew by a staggering 37%. Healthy beverages, such as
RTD teas were also growing over 4% annually.

Even though Nestlé is one of the biggest coffee sellers in the world, the company doesn’t
have any significant brands in RTD coffee or RTD tea markets. The are many smaller brands
that could be acquired in the industry or the company could push its own RTD brands to the
U.S. market to take the advantage of the growing RTD sectors.

THREATS

1. Poor quality water and its scarcity

Beverages, make over 25% of the total Nestlé’s sales and water is used in all of their production.
Bottled water products alone generate 8% of the total company’s revenue.

Water is scarce and is becoming even more scarce due to the factors such as climate change,
growing populations, overexploitation of resources, the increasing demand for food products,
increasing pollution and the poor management of waste water. Demand for water is increasing, and
it will likely become more difficult for Nestlé to access both clean and inexpensive supplies of
drinking water, resulting in potentially increased production costs and therefore lower
profitability.
The company also currently receives lots of criticism and negative publicity over its high use of
drinking water near the communities suffering from droughts. In the future, water scarcity will
likely become a more significant problem that will negatively impact company’s operations.

2. Increased competition in the beverage and food industries

According to Nestlé, competitive rivalry is one of the key threats affecting the company. The
beverage and food industries are highly competitive and consist of numerous small, large and
multinational companies. Beverage, food and snack products compete primarily on the basis of
brand recognition, taste, price, quality, product variety, distribution, advertising, packaging,
convenience, service, marketing and promotional activity, as well as the ability to anticipate and
respond to consumer trends.[1]

Food and beverage markets are growing very slowly and with so many new startups, Nestlé will
find it hard to compete in the future.

3. The price of coffee beans could significantly rise due to major weather disasters

Coffee generates over 10% of the company’s total sales and coffee beans are the major raw material
used in its production. Therefore, Nestlé’s profit margins are dependent, to some extent, on the
price of coffee beans, which over the past several years has been very volatile.

SWOT Analysis Of Coca Cola

The market leader in the soft drinks industry, Coca-Cola is one of the most renowned brands across
the world. Be it your home, office, shops, hotels, bars or restaurants, Coca-Cola is everywhere!

94% of the world’s population recognizes the brand instantly by its red and white Coca-Cola logo as
per Business Insider. More than 10,000 soft drinks from Coca-Cola are consumed every second of
every day on average.

Coca-Cola was established in 1886 in Atlanta by John Pemberton. Within a few years, Coca-Cola
became the most recognized, renowned, and widely distributed brand in the world. Currently,
James Quincey is the CEO of this mega corporation.

COCA-COLA STRENGTHS – INTERNAL STRATEGIC FACTORS

Strong brand identity – Coca-Cola is a highly popular brand with a unique brand identity. Its soft
drinks are the most-selling drinks in history.

High brand valuation – Coca-Cola is undoubtedly one of the most renowned brands with a high
brand value. According to Interbrand annual report, Coca Cola is ranked 6th best global brand in
2021 with a brand value of $57 Billion. Other top ranking companies on the list are Apple at #1,
Amazon at #2, Microsoft at #3 Google at #4 and Samsung at #5 position.

Extended global reach – It is sold in more than 200 countries with 1.9 billion servings per day of
Company products. It has introduced more than 500 new products globally. Some of these are
variations of Coca-Cola beverage, like Coco Cola Vanilla and Cherry Coca-Cola. Its brands are known
to touch every lifestyle and demography.

Greatest brand association and customer loyalty – Coca-Cola is considered one of US’s most
emotionally-connected brands. This valuable brand is associated with ‘happiness’ and has strong
customer loyalty. Customers can quickly identify their particular taste. Finding its substitutes is
difficult for them. Moreover, Coca-Cola and Fanta have a huge fan following than other beverage
names in the industry.

Dominant market share – Out of Coca-Cola and Pepsi, the only two largest manufacturers of soft
drinks in the beverage segment, Coca-Cola has the largest market share. Coke, Sprite, Diet Coke,
Fanta, Limca, and Maaza are the highest growth drivers for Coca-Cola.

Unparalleled distribution system – Coca-Cola has the most efficient and most extensive
distribution network in the world. The company has nearly 225 bottling partners and about 900
bottling plants globally.

Acquisitions – Coca-Cola has a long list of strategic and profitable acquisitions including Costa
coffee chain, Fairlife (Milk Products), Fuze Tea, AdeS, and many more. Through these acquisitions,
Coca-Cola expanded its ready-to-drink beverage portfolio. [2]

Repositioning portfolio – Coca-Cola Company has repositioned and reduced the numbers of its
global brands from 400 to 200 brands in 5 major categories such as :

Coca Cola

 Sparkling Flavors
 Nutrition, Juice, Dairy & Plant
 Hydration, Sports, Tea & Coffee
 Emerging

COCA-COLA WEAKNESSES – INTERNAL STRATEGIC FACTORS

Aggressive competition with Pepsi – Pepsi is the biggest rival of Coca-Cola. Had it not been Pepsi,
Coca-Cola would have been the clear market leader in the beverage.

Product diversification – Coca-Cola has low product diversification. Where Pepsi has launched
many snacks items like Lays and Kurkure, Coca-Cola is lagging in this segment. It gives Pepsi
leverage over Coca-Cola.

Health concerns –Carbonated drinks are one of the major sources of sugar intake. It results in two
grave health issues – obesity and diabetes. Coca-Cola is the biggest manufacturer of carbonated
beverages. Many health experts have prohibited the use of these soft drinks. It is a controversial
issue for the company. However, Coca-Cola hasn’t devised any health alternative or solution for this
problem yet.

Lawsuits – Trust is undermined whenever the company is accused of wrongdoing. Coca Cola is
facing a patent infringement lawsuit for using a dispenser that can recognize users and customize
drinks based on their preferences.

Overdependence on Third-Party Technology Providers – Coca Cola’s operations rely heavily on


the technological expertise of third-parties. The company signed another five-year deal with
Microsoft to supply business software.

Environmentally Destructive Packaging – In the 2020 TearFund report, Coca Cola was named as
one of the four world’s largest consumer brands that are contributing immensely to global warming
and carbon emissions by using throwaway plastic bottles.
CEO of Coca-Cola Aims to Reduce Cherished Coke Products – James Quincy, the current CEO of
Coca-Cola and a renowned businessman, has recently been bombarded with disgruntled grievances
of Coke fans. The complaints are coming in because of the CEO’s shocking decision to permanently
discontinue some of the most popular products from Coca-Cola’s diverse product portfolio. Coca-
Cola aims to eliminate in-demand and popular products such as Tab (a diet drink), Odwalla (a
smoothie brand), and the loved coconut water Zico.

COCA-COLA OPPORTUNITIES – EXTERNAL STRATEGIC FACTORS

Introduce new products and reduce added sugar – Coca-Cola has the opportunity to introduce new
offerings in healthy drinks and food segments just like Pepsi. It can contribute to their revenue,
brand image and they can branch out from carbonated drinks. According to its recent annual
report, Coca-Cola has been evolving and prioritizing the reduction of sugar in its beverages and so
far 28% of its volume sold was low or no-calorie beverage.

Increase presence in developing nations – Many regions with hot climate have the highest
consumption for cold drinks. Thus, increasing presence in such emerging markets can be excellent –
Middle Eastern and African countries are a good example.

Bring advanced supply chain system – Coca Cola’s business is entirely dependent upon logistics
and supply chain. Transportation costs and fuel prices are always on the rise. Thus, coming up with
some advanced and improved systems for distribution can be an opportunity.

Packaged drinking water – Coca-Cola owns several packaged drinking water brands like Kinley.
There is a great potential for expansion in this segment for Coca-Cola. There is an opportunity to
expand and bring more healthy drinks in the market to avoid people’s criticism.

Expand through Acquisition – Although different sectors offer lucrative opportunities for growth,
quick entry into these markets can be a challenge. Recently, Coca-Cola’s growth was driven by some
of its recent acquisitions like Costa Coffee, Aha sparkling water and it can do it again. It has the
financial resources to acquire startups or SMBs in emerging markets and exploit the numerous
opportunities they present.

Partners with Constellation Brand – One of the world’s biggest non-alcoholic beverages brand
teams up with Corona manufacturers Constellation Brands to make alcoholic Fresca cocktails. It
seems like a good maneuver by Coca-Cola in an ecosystem where a handful of non-alcoholic brands
are diversifying their product portfolios.

Moreover, both companies are looking to grab a bigger market share for the much-in-demand
spirits-based cocktail drinks. Following the news of the partnership, Constellation Brands’ share
went up by 1%.

Coca-Cola introduces its very First TikTok challenge across the US – Coca-Cola enters the TikTok
stratosphere, announcing the company’s first-ever TikTok challenge in the US. It’s an excellent
move for the company to enhance its brand recognition further.

COCA-COLA THREATS – EXTERNAL STRATEGIC FACTORS

1. Water usage controversy – Coca-Cola has faced many criticisms over its water
management issue. Many social and environmental groups have claimed that the company
has a vast consumption of water in water-scarce regions. Besides, people have alleged that
Coca-Cola is polluting water and mixing pesticides in water to clear contaminants.
2. Pollution Lawsuit – Coke and three other companies are being sued by a California
environmental group for contributing to plastic pollution. In the lawsuit, Coca-Cola is
singled out for misleading the public about the recyclability of its single-use plastic bottles.
3. Direct and indirect competition – Although direct competition from Pepsi is clear in the
market, however, there are many other companies which are indirectly competing with
Coca-Cola. Starbucks, Costa Coffee, Tropicana, Lipton juices, and Nescafe, are the indirect
competitors of Coca-Cola, which can threaten its market position.
4. Economic Uncertainty – The recent events have negatively affected business operations,
supply and distribution chains, and devastated revenues of many global companies. In
2020, Coca Cola’s revenues declined drastically as restaurants, theaters, and other venues
that contribute about half of its revenue remained closed due to the global crisis.
5. Increasing Health-Consciousness – Consumers are increasingly adopting healthy
lifestyles and avoid products with unhealthy ingredients. The increase in health-
consciousness can reduce Coca Cola’s sales and profits as customers migrate to healthier
options offered by competitors.
6. Coca-Cola Recalls Sodas and Juices over Possible Contamination – According to Food
Safety News, Coca-Cola announced a recall of its Minute Maid and Coke products over
possible contamination issues. According to reports, the brands that have been recalled
include Maid Berry Punch, Strawberry Lemonade, and Fruit Punch.

The products were found to contain metal bolts and washers. The company recalled all
59-oz cartons that were distributed. Moreover, Coca-Cola also recalled 12-oz coke cans over
possible “foreign contaminants.”

RECOMMENDATIONS

Based on the above SWOT analysis of Coca-Cola, I can conclude that Coca-Cola has a definitive
market position in the soda industry. However, it is recommended to bring more innovative
changes.

Some recommendations are explained as follows:

1. Stepping into the food market – Coca-Cola needs to introduce new products in snacks and
food segments.
2. Focusing on health-related matters – It should bring some solution to address the rising
health concerns from social activists.
3. Improving its water management system and dealing with the criticisms from
environmental agencies.
4. Expanding into developing countries with humid temperatures – There are many
products of Coca-Cola like Fuze Tea, Dasani and Hi-C which aren’t distributed in many
developing countries. Coca-Cola needs to increase the distribution of such products.
5. Increasing the distribution of packaged drinking water like Kinley.
6. Working on sustainability and green marketing It can improve its brand image in the
market.

 Savemore vs. Puregold

SWOT Analysis of Savemore


STRENGTHS

1. SM is the Philippines' most dominant player in retail with over 45 stores

2. 180+ stores nationwide

3. SM Foundation, Inc. running CSR activities

4. Subsidiaries are SM Prime Holdings PSE: SMPH), SM Development PSE: SMDC) etc.

5. International Toyworld Inc. is a subsidiary of SM

WEAKNESSES

1. Not present in many countries

2. Lack online shipping and e-commerce

OPPORTUNITIES

1. Disposable income is increasing of the customers

2. Tapping the international market specially emerging economies

3. Acquisition of smaller retail chains

4. More visibility through advertising and customer focused services

THREATS

1. Different FDI policy on country

2. CRM is not in very well in place

3. Labor union relations are not very healthy

SWOT Analysis of Puregold

STRENGTHS

 high sales growth rate


 high profits
 existing distribution networks
 experienced management
 reduced labor costs
 barriers of market entry
 domestic market is large

WEAKNESSES

 low investments in research and development


 too many taxes
 too much competition
 low debt rating
 high costs

OPPORTUNITIES

 new products and services


 venture capital
 growth rates
 new acquisitions

THREATS

 increase in labor costs


 external business risks
 technological problems
 limited financial capital

Philippine Airlines vs. Cebu Pacific

SWOT Analysis of Philippine Airlines

Philippine Airlines (PAL), a subsidiary of PAL Holdings, Inc., is the country flag carrier. It is
headquartered at the PNB Financial Center in Pasay, Philippines. In 1941, Philippine Airlines wa
founded by a group of businessman led by Andes Soriano, one of the country’s leading industrialist
and it is the first and oldest commercial airline in Asia operating under it’s original name. It serves
31 domestic destinations and 54 international destinations in Southeast Asia, East Asia, the Middle
East, Oceania, North America, and Europe from it’s hubs at Ninoy Aquino International Airport in
Manila, Clarrk International Airport in Angeles, Mactan-Cebu International Airport in Cebu, and
Francisco Bangoy International Airport in Davao. Philippines Airline’s Unique Selling Point or USP
is that it manages a fleet of thirty-two modern wide-body and narrow-body passenger aircraft,
making Philippines Airlines a reliable national airliner for the Philippines. Philippines Airline’s
mission statement reads, “In delivering high-quality metrics on product and service quality,
Philippine Airlines has officially clinched a world-class rating”.

STRENGTHS

1. Only Airlines in Philippines to have IOSA accreditation and highest safety rating of 7/7
2. One of the oldest and the first airline in Asia.
3. Excellent customer-satisfaction records, lower fare and multitudes of in-flight services.

WEAKNESSES

1. Philippine’s Airlines underperformed the PH market and airline industry


2. Faces internal labor issues due retrenchment program
3. Unprofitable in the long-haul flight operations

OPPORTUNITIES

1. Growing tourisms is expected to increase hotel revenue, diversifying in hotel industry can
create value
2. Digitalization of legacy systems can help remain market leader in next decade
3. Focus on in-flight entertainment to drive growth going forward
4. Philippine Development Plan 2017-2022 to boost aviation sector

THREATS

1. New entrants increasing competition post liberalization and starting to capture market
2. Impact of pandemic on aviation industry and Philippine Airlines

SWOT Analysis of Cebu Pacific

Cebu Pacific Air A is the 2nd biggest org chain in the world and is widely known not only because of
its menu or taste however also because of their remarkable services and effective shipment. There
are around 13800 outlets of Cebu Pacific Air A around the world having sales earnings of 2.47
billion even if of they have different franchise internationally.

Usp (Unique Selling Propositions)

Any special benefits or extra services are consisted of in distinct selling proposals. The Cebu Pacific
Air A unique selling proposition is "get food provided in thirty minutes or else complimentary
company".

Target Market

Cebu Pacific Air A targets young generation, millennial (generation Y), kids and likewise low middle
class people.

Positioning

The business has actually positioned its image in the minds of clients of" Fast delivery services"
through which they can beat and beat their competitions.

SWOT ANALYSIS is a main phase strategy to evaluate company's techniques and Plans. Perhaps, it
is in the type of windows where two elements are related with the internal environment and two
components are related with external environment.

Marketing Environment

Micro-Environment

Cebu Pacific Air A has divided its marketing environment into two sectors. Therefore, the first
segment involves leading management and arranging structure, operations management,
purchases of basic material and possessions, monetary analysis, accounting book keeping and
research advancement. Cebu Pacific Air A constantly deal with these factors of micro to capitalize
the strong position of their brand names.

Macro-Environment

It consists of all the external forces and threats/opportunities which impact the company favorably
and unfavorably. Thus, the business macro marketing strategy factors includes political, cultural,
social, technological, ecological and demographical changes. The Cebu Pacific Air A have developed
in those country who have actually effectively controlled overs it external factors like United States,
China and Canada.

STRENGTHS

1. Quality Meals & Product Innovation

Cebu Pacific Air A is a fast-growing business and has actually always valued their clients by offering
them quality meals. These corporation are also tailored and there are varieties of Cebu Pacific Air A
flavors offered by Cebu Pacific Air A. In the last 50 years they have produced numerous types of
Cebu Pacific Air A like hand-tossed corp, potato wedges, cheesy-garlic breads and parmesan bread.

2. Reliable Suppliers

The providers of Cebu Pacific Air A are credible and trustworthy. They supply the raw materials
and components to them on time which secures the supply chain management procedure.

3. Strong Captured Marketing& Promotional Advertisement

They have recorded the minds of its customers through their emotional and strong message
advertisements. Like Mother's day advertisement of Cebu Pacific Air A offering a message to love
you moms and dads no matter what is psychological technique of Cebu Pacific Air A.

4. Quick & Fast Delivery System

Cebu Pacific Air A is preferred for its fast delivery. They supply shipment in 30 minutes precisely, if
the consumer will not get it within 30 minutes then they will provide "complimentary
organization". They never get late.

5. Pricing Range

All of Cebu Pacific Air A products are offered to clients in sensible and budget-friendly rates. The
consumers can get various sizes and offers of the corp of various flavors.

6. Internal Dough Manufacturing

The business is producing its company dough own without working with any suppliers. That's why
their Cebu Pacific Air A dough are various from its competitors and many other fast food
restaurants. They are using vertical integration through which their products are produced at high
quality. That's why it has become secret active ingredient for Cebu Pacific Air A.

7. Customer Services

Social media managers of Cebu Pacific Air A offer 24/7 help on their websites and social media
platforms through which they engage with clients. However, it likewise create an excellent
relationship among the clients and the franchisees.

8. Strong Brand Equity

Every client of Cebu Pacific Air A acknowledged it through its important services which is making
strong brand name equity. Whereas, Cebu Pacific Air A only produce quality products and provide
30-minutes fast shipments due to which they have strong brand image. This is the factors that the
business has numerous faithful customers.

9. Highly Skilled Employees

Cebu Pacific Air A company has made certain training and advancement programs for its staff
members to enhance their proficiencies. Because of its non-monetary (employee of the months)
and financial advantages (benefits and increments) the company has maintain the staff member's
inspiration towards their work. The learning programs help the company to improve their
effectiveness and improve their skills.

10. Strong Distribution Network

Cebu Pacific Air A have actually kept its circulation network which is the most necessary strength,
now they have expand their circulations in every corner of the world to maintain its prospective
market worldwide.

11. Proven Business Model

Business design of Cebu Pacific Air A is established according to the Cost efficient store model.
Thus, their business model involves all the operations which are kept in previous 50 years that
includes earnings, fees, supply chain and operations, revenues, techniques and functions.

12. Investment In Technology & Innovation

Innovation and innovations also affects the venture restaurants. Cebu Pacific Air A have combined
with other technological business.

13. Goods Return On Capital Expenditure

The more financial investments Cebu Pacific Air A has made on their services and products,
creating incredible franchisees/stores and investing on its worker trainings has return high
revenue streams in past years.

WEAKNESSES

1. Low Number Of Outlets

Weaknesses SWOT Analysis Cebu Pacific Air A have high variety of franchisees for order taking
however there are no appropriate dine-in restaurants of Cebu Pacific Air A everywhere.

2. Franchise Related Issue

Cebu Pacific Air A is facing issues because of dis-loyalty of its franchise staff members. As there are
variety of franchise and it ends up being challenging to control each employee who cheats.

3. Operational Difficulties

As the franchisees lie in every corner of the city, it ends up being really hard for Cebu Pacific Air A
to deal with its operations.

4. Need of High Technology


The business visions not consult with the innovation they are utilizing now. For this reason, they
need to invest more in their innovations to standout in competitive market.

5. Net Income

Cebu Pacific Air A have actually analyzed that their net incomes are not matching to its really
financial estimations and predictions. The business needs to work on its sales to increase its net
effectiveness and incomes.

OPPORTUNITIES

1. New Environment Policies

The brand-new environment policies can produce great OPPORTUNITIES for Cebu Pacific Air A.
With the smooth environment policies they can acquire more take advantage of innovation.

2. Low-Calorie Menu

If Cebu Pacific Air A will add low-calorie meals in their menu, it will increase the customers. They
can use low-fat items and less starch to make their items low calories meals.

3. Cebu Pacific Air A

Cebu Pacific Air A has broadened its market globally. There are more than 85 nations according to
statistical data having Cebu Pacific Air A outlets and franchisees. They prepare practically 1.5 billion
corporation on daily basis for numerous outlets.

4. Demographic Changes

The middle class customers can also afford Cebu Pacific Air A. They have segmented their market
according to demographical segmentation.

5. Population of Asian Countries

Nations like India, Pakistan and China have high demands for Cebu Pacific Air A. They appreciated
the quality of their tastes and spices they utilized. They liked their hand made org and the active
ingredients they use like cheese and meatballs.

6. New Preferences in Cebu Pacific Air A

Cebu Pacific Air A can include more tastes in their venture, they can add flat corporation in addition
to there are numerous fans of those type of slices. Likewise it will benefit Cebu Pacific Air A to
include LAVA cakes due to the fact that its competitors like Cebu Pacific Air A have it.

7.Changes In Economic

The clients are having high getting powers because the ratio of work in Asian and Europe countries
are high. The amazing factor of Cebu Pacific Air A is that it can not be affected by the buying powers
of customers.

8. New Trends In The Consumer Behaviors

Because of the new patterns in the customer habits it has open numerous OPPORTUNITIES. They
use cognitive ads to change the decision making process of the customers.
9. Lower Inflation Rate

In some countries the inflation rates are low. This assists the business to control their costs and
rates.

THREATS

1. Direct And Indirect Competition

THREATS SWOT Analysis Cebu Pacific Air A have THREATS of competition. Its instructions
competition there includes only venture making sectors where as in-direct competitors consists of
multiple fast-food chains.

2. Cebu Pacific Air A Main Competitive Advantage Over Cebu Pacific Air A Is Dine-In Facility

Cebu Pacific Air A have dine-in areas in Middle East, Europe and Asian nations. Whereas, Cebu
Pacific Air A have little counters and in some locations there no counters at all.

3. Regulated Pressures

Each year the government executes new laws and guidelines.

• Cebu Pacific Air A has faced regulated pressures in providing salaries to their employees and
employees.

• There are 13800 outlets, and their license are restore on annual basis according to the laws and
policies of the governments authorities who made these execution.

4. High Cost

Cebu Pacific Air A existing operations and productions involves numerous functions which are
costly. They can work on cost-minimizing techniques to prevent this risk.

5. Lack Of Long Term Contracts With Suppliers

The Cebu Pacific Air A suppliers supply raw products like veggies and meats. This can be a major
THREATS to business that can affect its production.

6.Health Awareness And Consciousness Trends

Now a days, people choose healthy and homemade food rather than junk-food. The health
consciousness among the clients can direct effect the sales of the business.

RECOMMENDATIONS

The Cebu Pacific Air A must offer some vouchers and discount vouchers to their
https://europepmc.org/. This will help them to preserve its excellent relation with their devoted
customers and assists a company to prevent decreasing in sales. The Cebu Pacific Air A can improve
their online buying systems by adding more easy to use features to their sites and Facebook.
The Cebu Pacific Air A has faced difficulties in the year 2007 because of the demands of their items
were decreased. Cebu Pacific Air A does not have enticing advertisements. Cebu Pacific Air A should
make financial investments on the marketing and ads to create awareness of the services and
products. If they will value their customers and supply them special deals, it can set a strong
consumers base. The company should concentrated on the customers-level techniques to seek
attention of the customers. They can also enhance their providing techniques in different methods.
The consumer's vision will be clear if the Cebu Pacific Air A will offer them awareness of their items.
It will help to increase the marketplace share and can be a factor of success. If the business will do
market research to know what the consumers precisely want from them, which can be include their
menu, how they can enhance their services and qualities and what modifications they need to make
in their customers services. General experience of clients can develops positive influence on the
business.

CONCLUSION

Now Cebu Pacific Air A has keep the clients' demands and needs and offering much healthier
options to their clients. Cebu Pacific Air A is an international company which is expanded since of
its high numbers of strengths. Due to the strong brand name equity the Cebu Pacific Air A has built
in previous years of providing quality items and exceptional services is constantly pressing the
company to stay strong and hold a great position and reputation in the market.

Jollibee vs. McDonald's


SWOT Analysis of Jollibee

STRENGTHS

 Very strong brand name in the Philippines.

The company is the equivalent of a local Mcdonald’s franchise in terms of recognition.


Filipinos love it and brand loyalty is incredibly high. As a result, in Asian countries
where there are Filipino ex-pats, Jollibee stores always have an edge against
competitors.

 Tasty fast food dishes that are also healthier.

The company has succeeded in branding themselves as having a good balance between
the “typical” fast-food meals and healthy home-made dishes low in trans-fat.
 Locally styled food catered to Filipinos.

It is not just a global fast food that sells food in their market. They offer food made by
Filipinos to Filipinos. They know exactly what type of taste and overall feel the
customers want and they deliver. This is a very strong defensive mechanism against
international brands that would potentially attempt to grow their share in the market.
No matter what competitors do, they could never be the local icon Jollibee is.
 Convenient locations and 24-hour service:

With more than 1,150 locations, drive-thrust, online delivery, and 24-hour operation the
company strive to make the customer experience super easy and hassle-free. 

 Family Oriented Branding & Internal Governance:

Their focus has always been in promoting the traditional family values, by implementing
a likewise approach in the company structure and management. The result was winning
the best employer in the Philippines Award from Hewitt Associated and reaching the
Top 20 Employers in Asia according to the Wall Street Journal.

WEAKNESSES

 Super healthy and clean eating diet trends lower the appeal of eating fast-food.

No matter how “healthy” fast-food brands try to make their products, more and more
people decide to stop consuming them. This is an intrinsic weakness for brands like
Jollibee as the public has associated strictly with the fast-food industry.

 A small number of stores outside the Philippines due to Filippino based tastes and
branding.

Even though they have clearly conquered their domestic market, the same can’t be said
for the international market. Non-Filipino consumers would be more likely to prefer the
rest of the international fast-food brands

 Product offerings don’t change often.

Consumers might like the original tastes but every business has to continuously strive to
offer something new and exciting. 

 In 2020, the pandemic caused a loss of about $336M and led to the closing of close to
255 worldwide. 

OPPORTUNITIES

 Acquiring or creating businesses that have a “clean eating” and healthy lifestyle
brand identity.

This is the only way Jollibee can please the entire spectrum of consumers. Having a
dedicated offering for each one, without trying to repurpose their existing brand.
 Offer new products and continue to innovate.
Jollibee needs to continue experimenting with their tastes so their loyal customer base
will have even more reasons to make an order.

 Further expansion in the international markets.

They can acquire well-established brands that follow the principles behind the success of
Jollibee inside the Philippines. Thus, diversifying their business portfolio and not relying on a
single market.

THREATS

 The ever increasing competition in the fast-food industry.

The giants of this space like Mcdonald’s, KFC, Burger King are always on the hunt for the
next opportunity. If they decide that they want to penetrate further the Asian market,
Jollibee will have a tough time keeping up.
 Regulations.

As everything globally shifts to a healthier way of living, many products, ingredients, or


ways of food processing can become banned. This means that rapid action is required in
order to constantly adapt to the ever-changing laws. That type of action and preparation
always demand large amounts of time, energy, and resources that could have been
allocated elsewhere.

SWOT Analysis M’cDonald’s

STRENGTHS
 Fortune Magazine 2005 listed McDonald's as the "Best Place to Work for Minorities." ranked
number one in Fortune Magazine's 2008 list of most admired food service companies.
 McDonalds is a community oriented, socially responsible company.
 McDonald's was named Entrepreneur's number-one franchise in 1997
 McDonald's was the first.
 Fortune Magazine 2005 listed McDonald's as the "Best Place to Work for
Minorities."
 McDonald's was the first restaurant of its type to provide consumers with nutrition
information
 McDonald's takes food safety very seriously. More than 2000 inspections checks are
performed at every stage of the food process. McDonalds are required to run
through 72 safety protocols every day to ensure the food is maintained in a clean
contaminate free environment.

WEAKNESSES
 High employee turnover in their restaurants leads to more money being spent on
training
 They have yet to capitalize on the trend towards organic foods
 McDonald's have problems with fluctuations in operating and net profits which
ultimately impact investor relations. Operating profit was $3,984 million (2005)
$4,433 million (2006) and $3,879 million (2007). Net profits were $2,602 million
(2005), $3,544 million (2006) and $2,395 million (2007).

OPPORTUNITIES
In today's health conscious societies the introduction of a healthy hamburger is a
great opportunity.
Provide optional allergen free food items, such as gluten free and peanut free.

THREATS
Major competitors, like Burger King, Starbucks, Jollibee, Wendy's, KFC and any mid-
range sit-down restaurants.

CONCLUSION
Jollibee is a very strong brand that can maintain its leading role in the Philippines if the
company continues to adapt and evolve. Despite the competition, the selling proposition is
unique enough to keep Jollibee apart from anyone else inside their country.

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