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6. Case study analysis (3 marks) Minibread is a small bakery operating with 10 employees in one large city. It sells a variety of
6. Case study analysis (3 marks) Minibread is a small bakery operating with 10 employees in one large city. It sells a variety of breads, pastries, cakes, and pies in its store, and the products are known for high quality which the bakery sells at a premium price. There are several retailers that have approached Minibread and offered to sell its products through their stores, however, the owner of Minibread is happy with how the business has been running so far. Recently a large food manufacturer, Bigcake, based in another city that has a strong brand name plans to start its operations in the city. Bigcake is well known for its high-quality breads and pastries, particularly after it started to use a new technology in its production process that can also produce high volume of products in a short time period. Bigcake plans to sell its products through several large retailers in the city in large quantities/packages, targeting families as its main customers. The owner of Minibread perceives the situation as a potential threat to its business, especially in terms of product quality and price, and is determined to adopt a proactive strategy in anticipating the local competition from Bigcake. Minibread's owner is considering investing in the same technology used by Bigcake as its strategy to match the quality of the competitor's products. The owner is optimistic that this strategy will not only prevent his company from losing its existing customers, but, more importantly, also provides an opportunity to increase its customer base (families) by offering similar packages as offered by Bigcake. Minibread's owner has started to look into the machine's vendor, and the possibility of taking out bank loan to cover the cost of the investment. Based on the above case study, answer the following questions: a) Analyse the competitive dimensions that are applicable in the case study (1 mark). b) Analyse the strategy that is considered by Minibread in facing the potential competition from Bigcake in its business along with its implications, and provide your recommendations of the operations strategy for Minibread in this situation (2 marks)
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