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Essay / Research Paper Abstract
This 8 page paper examines Cinnabon and performs a strategic external analysis of the company in the wider environment. Using Porters Five Forces model as a framework to look at factors such as market attractiveness, major trends, value delivery systems as well as a customer and competitor analysis. The bibliography cites 9 sources.
Page Count:
8 pages (~225 words per page)
File: TS14_TEcinnabon.rtf
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Unformatted sample text from the term paper:
competitive market. To assess the potential future do the company a strategic analysis can be considered. When undertaking a strategic analysis to consider major trends, the way value is delivered
and issues such as competitors after looking at a broader overview of the industry models such as a Porters Five Forces analysis is a good framework to look at the
influences. Cinnabon was founded in 1985, the first shop opened at Sea Tac mall in Seattle, the goods sold were cinnamon rolls. That included cream cheese fillings, frosting
and brown sugar filling. The cinnamon rolls made use of Makara cinnamon, which is the companys signature cinnamon and is used as a form of differentiation to help the company
compete (Cinnabon, 2007). In order to understand the strategic poison of the company the industry as a whole, and competitive forces need to be considered. Porters five forces model
looks at the competitive environment by considering the threat and influence of current competitors, the threat of new entrants, the power of buyers and suppliers and the threat of substitutes.
To look at the treat from competitors we need to look at the industry as a whole. The company operates in the baked good market. In the US this
was worth $42.9 billion in 2004, with a slow growth rate of 2.4% on 2003 (Euromonitor, 2005). The largest segment is that of bread, which accounts for 45.8% of
all sales, the remaining sales are the areas where Cinnabon competes, including cakes, pastries and cookies (Euromonitor, 2005). When the market is measured in terms of sales there is
a high degree of fragmentation, with no single dominant supplier to the armlet, the tip five companies only make up 17.1% of the market (Euromonitor, 2005). The largest single company
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