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 Name of business: NEW AMBALA BAKERY

It is a family owned business.

 Type of operation: Retailer, food and confectionary items.

 Type of business: Partnership.

 Address:

 Contacts:

If you are considering starting a bakery business in karachi. Your concern should not
be restricted to just acquiring an ideal location and hiring best hands in the industry.
You should also be concerned about new trends in the industry and how to target
customers in effective ways like through social media and home services. Following
are the industry analysis on bakery and food:

If we look at Ambala bakery and a place where it is situated, you would get a clear
picture of it’s direct competitors which is right near to it. Obviously the main
competitive advantage of a bakery is to provide better service and quality as
compare to your competitor. Other indirect competitors include people who make
their own baked goods and cakes from home and similar services. To get on these
competitors requires equal or better services through social media and home
delieveries. To better compete in this market is to focus on your niche market. For
example during the time of events. You can acquire competitive advantage by using
quality products at low prices.
 Supplier power:
This determined how easily your suppliers can increase prices on raw materials or in
that cases, baking materials like wheat, flour etc which requires to make bakey
items. The main thing to consider is that Ambala bakers buy these things in
wholesale prices or in bulk quantities on a credit basis. So if the supplier have to
increase price due to economic instability, the overall prices would be relatively low.
And the big advantage is that the main materials for baking like dairy milk are
supplied through their own dairy farm.

 buyer power:

it depends on how it is for buyers to drive your prices down. How many buyers are
there and how big are there orders? These parameters are important to consider
while engaging with customers. As described before the target market of Ambala
bakery are middle class people. Which is really high in the area. So the buying
power of a buyer is relatively high and they often give big orders, so you have to give
them back accordingly to remain your customers.

 Threats of new entrants:

the thing with bakery business is that the investment is very high. The first priority of
an entrepreneur is to find a best suitable location for bakery where you will be need
gathering of people and at a commercial place. Besides a person who is familiar with
this business mostly runs better than a person who is new to this business. So, the
major threat is moderate and not as much high.

 Substitutes:
The bakery has substitutes available in the market for some products like its own
made biscuits, but these local bakeries also sell packaged biscuits Different brands
are readily available in the market. The prices of the products are same and very
less variation is present in products and prices. Substitution is not a problem as there
exist perfect substitutes at almost no cost of substitution. Many substitutes exist for
bakery products. Breakfast cereals, rice and potatoes are all viable alternatives and
individuals can also make all of the baked goods they want at home. Bakeries rely
upon price and convenience to keep individuals switching to a substitute or baking
what they need at home


 Political— Meeting all the policies and working under the political subtilities.
 Economical— Focusing the income level of targeted customers.
 Social— The social class we have targeted are:
 Technological— Accepting and using the innovations in technology for
 Demography— Ambala bakery deals with all kind of demography. It caters all
kinds of age groups starting from children to adult.
 Culture— Ambala bakers keeps it self in line with the local culture of karachi. It
provides different products according to local festivals events and religious days.

Trend analysis:
With a continuing trend of customized cakes through facebook and other social
media websites as per customer needs provides a new whole lot of challenge for
local bakeries in the city.
Many entrepreneurs have started making cakes in their houses as per customer
needs and sell at reasonable can impact indirectly on bakeries cake sales.
In future, Ambala bakers have to come up with strategies that enables to provide
home delievery services. But the problem is that most of the class near Ambala
bakery is lower income people and they can’t afford to pay high price for cakes.
In that case, we have to carefully maintain our prices.