Paul Swot Analysis

SWOT Analysis: PAUL

International Business: CESEMED 2, Section 3

Richard BRIGGS, Olivia SAYERS, Jessica SHORT, Matthew WALKER

Intro & Business Model

PAUL is a French bakery chain, with 449 bakery/pastry shops, in 24 countries, across 4 continents, with 4 million customers per month in France alone. They have strategies for expansion, with plans to open stores in foreign markets, in the next 10 years. They have faced some difficulties being accepted in France, as it goes against the traditional French culture of independent, local bakeries.

Company Offer

They describes themselves as an “affordable luxury” (Groupholder, 2015), with an aim of producing consistently high quality products. Convenience and luxury are at the heart of what Paul have to offer, going against the traditional French bakery stereotype.

Core Product

The core product offered by a company, is not the tangible product which they sell, but the benefit which the product offers. This is to say, the need which the product fulfils. For PAUL this means the core product they offer is not the bakery and pastry products which they sell in store, but the convenience of the standardised, reasonably priced, high quality products they serve.

Actual Product

A business’s actual product is the tangible product which they offer or sell, including the quality, colour, fashion, style and branding on the product. Paul’s actual products are the pastries and bakery goods which they offer in store, alongside the other products which they sell i.e. sandwiches, baguettes, beverages, salads, etc.

Augmented Product

An augmented product is the non-physical aspect of the product, which adds value for the customer. This includes, after-sales services, such as warranties and after sales support. For PAUL this could include the loyalty card scheme which they offer, which is a points based system. This provides customers with a reason to return, achieving brand loyalty and attracting repeat business.

SWOT

Strengths:

Paul has a number of strengths as a business. As a chain of bakeries, as opposed to the traditional French local bakery, Paul has strong brand recognition across many foreign markets. Customers recognise them as a brand which offers a luxury product, and they know what to expect from each store, no matter where in the world they find it located. This differs from a local bakery, whose standards, prices and product range could differ vastly from store to store. This standardisation means customers do not risk receiving a service they are unhappy with, which, along with their loyalty card scheme, keeps customers returning.

Paul also offers a drive through service in some of their stores. This is a very innovative idea, which whilst being very common in fast food restaurants, is not seen very often in bakery stores. This adds to the convenience of the brand, saving customers the time and effort of parking and leaving their car, in order to shop at Paul. This caters to the 21st century customer, who does not always have the time to shop in store.

Weaknesses:

A strong weakness for Paul, as that it goes against the traditional French culture of local bakery stores within the community. This has meant there has been some opposition to the brand, as some French customers have not accepted it. This being said, Paul operates in 24 countries worldwide, and this problem may not be something they face elsewhere.

Another weakness for Paul could be the fact that their products are baked in store, but are produced elsewhere, in factories. This could be seen as a weakness, because this differs even more from the traditional French bakery. However, this does increase productivity and standardisation, which keeps prices low, and quality high, which their customers expect.

One further weakness for Paul could be their mix of traditional and modern business propositions. Paul market themselves as a traditional bakery store, and have not changed their store layout since 1993 (Groupholder, 2015), however they have outsourced the making of their products, and have introduced modern ideas, such as the drive through service. Whilst this could be seen as rationalisation and essential for the 21st century market, it could also be seen as a weakness, as it further separates them from the traditional French bakery idea.

Opportunities:

There are many opportunities available for Paul, looking forward. The online market is something which Paul is yet to expand into, and is something they could look into. The availability of ordering online is often expected by the modern customer, and so Paul could set up an online delivery service for customers. This would improve the augmented product that they offer, by increasing the convenience of the product, which could also increase brand awareness and brand loyalty, as customers can purchase the product wherever they are.

Another opportunity for Paul, which they are already planning, is global expansion. They plan to open 15 stores over the next 10 years in various countries, including Taiwan, Romania, Greece and America (Groupholder, 2015). This will increase the customer base, and should increase revenue, allowing them to further invest in the business. By expanding globally, they could also attract foreign investment. This will attract investors who are experts in the foreign markets they are looking to invest into. For example, an American investor would struggle to overcome the cultural barriers in an Asian market, however a franchisee from that country would be aware of what that country expects.

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