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Don Don Case

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DON DON Reflection

Strengths and weaknesses

Major strengths :

Brand name “TVOJIH 5 MINUT” : differentiation compare to the other company in the market who keep the corporate name brand. Big experience in the pastry production ; they always continue to develop and research for improve the quality and the production process. Annual growth rate : average of 62% between 1998 and 2003. Flexibility confer by the size of the company (medium size). Present in the healthy food segment which increase every years. Same for the bakery products. Leading position in the fresh sweet pastry segment. Constant analysis of the different market opportunity and customers needs and wants ; “sophisticated IT system” Important communication with merchandiser-distributors. Nice profit margin on sales ( 3 times more than the average of the bread industry)

Major weaknesses :

Loss of the 2 cofondators of the company which can involve a loss of the original spirit and vision. Franchising who can be bad for quality Lots of long terms liabilities and high debt ration ; maybe it will be difficult to find new liquidity for investment. Major part of the production is in the western Slovenia

Sources of competitive advantage

The IT system of Don Don is one of the major advantage of this firm. They can use that in order to take better decision and understand better the consumers. They also be able to adapt them-self quicker than the competitors if there is some change in the market structure. But all this informations have a coast and the company need a good financial health in order to keep this database up to date.

The intense R&D is also a big advantage. With the link between the IT system and the R&D service Don Don can always innovate in order to be one of the first to sell at...

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