Main “Victorio Cakes” opportunities are:
- Coming onto niche custom-made cake market and building up a good reputation
- High growth potential due to a growth on the Cake market, according to my secondary research. Custom-made cake market is a part of this, so “Victorio Cakes” business might see a growth in the popularity for their products (custom-made cakes) and see growth in sales.
- Delivery service will be introduced in the long run, making it more convenient for the customers, and potentially encouraging more sales.
- “Victorio Cakes” is a small company and at the moment it is entering niche market where there are many other small firms as well as some big ones. In this case, it will be an opportunity for “Victorio Cakes” even though there are going to be certain barriers to entry such as relatively high initial costs of set up and promotion, but “Victorio Cakes” entrance on to the custom-made cake market might be a threat to other small firms providing similar products and services, as it will become more difficult for them to compete, because “Victorio Cakes” is going to charge lower prices to gain some customers and share on the niche market, which might drag away some customers buying cakes from the other companies due to price competition. However, the extent to which it will happen depends on their loyalty to certain cake-making firms and price elasticity of demand, or how much lower the prices charged by “Victorio Cakes” will be in relation to the prices charged by other companies.
