Strengths: The product is number one cheese brand in Australia. Moreover, it engages large customer circle. Further, the production of bega cheese is cost effective and it is easily available in the market.
Weakness: The Company is not able to generate high production of bega cheese due to unstable climate of the region. Moreover, company takes huge time in processing the 250 gram cheese in the market. For instance, there was 8% drop in milk intake because of that revenue from bega cheese has dropped to 4% (ABC Rural, 2014).
Opportunities: As the bega cheese contains only 2 grams of fat for each slice which is an opportunity for the company to reach out to youth or people that are health conscious. Moreover, market of bega cheese can be expanded in the foreign soil. For example, people of Canada are more health conscious. Therefore, products can be made available to Canada’s market.
Threats: The Company has to face high cost of input for cheese production. Further there are other competitors that are affecting the sale of 250 gram bega cheese. For example, rivals like Devodale, Vitasoy, etc (Battle, 2014).
Political: The corporate tax rate imposed by the government of Australia is 30% due to that company is not able to register better revenue from the sale of 250 gram of cheese. Moreover, if the government imposes new tax regarding the acquisition of milk from farmers or on milk solids then it can lower down the production of bega cheese (Countdown NZ Ltd, 2015).
Economic: The inflation rate in Australia is 1.7% in 2014which decreased from 2.3%. Therefore, it is advantageous for the company to increase the sale of cheese. Moreover, the price of cheese can be fixed by company as per the purchasing power of customers.
Social: The people in the society are more inclined towards enhancing health condition and thus they avoid fatty food. Therefore, 250 gram cheese contains 65% reduced fat that can help in increasing the sale and reaching out to large customers (Dairyaustralia.com.au, 2015).
Technology: The most advanced technology is used such as food processing technology is employed for transforming raw material into finished product. On the other hand, cheese processing machinery, industrial mixer grinder, etc are being used for the production of bega cheese.
Legal: The consumer laws are being followed so that best cheese product can be delivered to consumers which do not affect their health. Moreover, safety standard is also followed in every phase of cheese production till its delivery to market (ABC Rural, 2014).
Environment: In order to bring sustainability in the environment, the company uses organic packaging for 250 gram bega cheese so that it can be easily dumped or reused. Therefore, it helps in enhancing the environment.
Threat of new entrants: The entry of new cheese product brand can affect the market of bega cheese. The new entrants such as Liddell’s and Coon are slowly gaining the market share which can disturb the earning of bega cheese and its market.
Bargaining power of suppliers: The suppliers can have the bargaining power as the suppliers of milk solids is less in number and in order to run the business and produce bega cheese the company will be requiring milk solids or milk. It has been found from NSW Country Hour report that bega cheese $7.22 per kilogram for milk solids to suppliers of New South Wales.
Bargaining power of customers: The population of Australia is 23.13 million and per capita consumption of cheese product is 13.4. Moreover, the quality cheese making industry is less in the region because of that customer has less power to force company to decrease the price of bega cheese (Countdown NZ Ltd, 2015).
Threat of substitute product: The major threat that can be related to bega cheese can be milk, butter/blends or yoghurt. As the per capita consumption of milk is consumed higher in comparison to other milk products and further, yogurt is third and butter consumption is fourth. Therefore, if bega cheese does not continue with its quality and consideration to fat then the product may lose its market share and customer base.
Degree of Competitive Rivalry: The major rivals in context to bega cheese are Devodale, Vitasoy and Lemnos that can affect the sales and revenue of 250 gram of bega cheese. The price of other rival product is close to the price of bega cheese that $3.20 for 250 gram. Therefore, the company has to invest to promote the bega cheese and upgrade it at regular interval so that it can maintain its market and gain competitive edge over other competitors (Dairyaustralia.com.au, 2015).
ABC Rural, (2014). Bega Cheese confident for dairy industry. [online] Available at: https://www.abc.net.au/news/2014-07-03/bega-milk-prices-dairy/5569064 [Accessed 4 Feb. 2015].
battle, '. (2014). 'Dairy wars' not over as Bega Cheese positions for battle. [online] The Sydney Morning Herald. Available at: https://www.smh.com.au/business/dairy-wars-not-over-as-bega-cheese-positions-for-battle-20140219-32zk5.html [Accessed 4 Feb. 2015].
Countdown NZ Ltd, (2015). Buy bega cheese slices superslim 250g online at countdown.co.nz. [online] Available at: https://shop.countdown.co.nz/Shop/ProductDetails?Stockcode=12958&name=bega-cheese-slices-superslim [Accessed 4 Feb. 2015].
Dairyaustralia.com.au, (2015). Australian Dairy Consumption Summary - Dairy Australia. [online] Available at: https://www.dairyaustralia.com.au/Markets-and-statistics/Production-and-sales/Consumption-Summary.aspx [Accessed 4 Feb. 2015].
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