Running head: SWOT analysis 1

SWOT analysis

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Hostess brands Company in the United States upholds its position by SWOT analysis and

review (Flanders, 2017). The strengths and weaknesses are internal factors in a company that

positively or negatively affect its performance and influence the company's performance. The

company's strengths entail products made of health-friendly ingredients; hence demand by the

entire market is high. The industry has a strong brand portfolio with standardized prices and

after-sale services whereby a customer buys products in bulk offer transport services to their

premises. Likewise, the company has reliable suppliers and adequate machines for the

production of the products. Lastly, the cake production has good management such that the

employees perform the allocated duties effectively. The main weaknesses that hinder the

company's performance include; low technology investments, stiff competition, insufficient

marketing strategies, and limited success outside the business core.

The opportunities and threats are the external factors such as the market, the competition

among other companies, and the technology used in production, which hinder or facilitate output

in a particular company. In this company, just as in other organizations, they face threats,

especially from competing companies, and opportunities. The risks include the structural

changes whereby the company's market wants to change the buildings and control the area. The

company faces stiff competition from other companies producing similar products, and the

market available is small. The industry has no regular innovative product supply that affects its

marketing.

On the other hand, opportunities such as new technologies for packaging their

environmentally friendly products open more opportunities to sell their products (Flanders,

2017). The other companies are yet to discover it. The company produces cakes with different

shapes apart from the square, rectangle, and heart shape, which has led to an increase in sales in
SWOT analysis 3

the market. The industry has a lower inflation rate and stable free cash flow opportunities that

increase the new technologies investment strategy.

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References

Flanders, K. J. (2017). Hostess brands inc.: A case study. Journal of Business and Retail

Management Research, 12(1). https://jbrmr.com/cdn/article_file/content_58549_17-10-

04-22-09-59.pdf