Cheesecake Factory in Brazil
Market analysis is one of the important activities that are carried out before a business in started. This ensures that once the business has started, it is likely to succeed. Diamond model is one of the models that are helpful in evaluating business projects. This research paper will evaluate cheese cake factory in Brazil using the diamond model that was invented by Michael porter.
The government in Brazil is very supportive to the industries in the country. For new industries that are emerging in the economy, the government offers tax holidays to reduce their production costs. In addition, if the factories aim at exporting their products, the government offers subsidies to ensure that the export is competitive in the market (Reynolds, 2001). The government is very supportive to the basic industries that facilitate the supply of raw materials for the other factories. Therefore the government is very co operative when it comes to encouraging the establishment of new firms in the country.
Cheesecake is a deserter that is liked by many people all over the world. Many people in Brazil like deserters and one of them is cheesecakes. However, cheesecakes are preferred more as compared to other deserters. This is mainly because of the fact that the cheesecakes are not too sugary. Most of the people do not like too sugary foods since they believe that it can be dangerous to their health. A large percentage of the women in Brazil prefer cheesecakes as their deserters. These women prefer it for the reason that they believe that it is sweet. Therefore there is demand for this product in Brazil and the largest population that can be targeted is the women.
Brazil has a comparative advantage in the production of cheesecakes. This is due to the fact that the raw materials required in the production process are readily available. Some of the raw materials that are present in Brazil that help in preparation of cheesecakes include: nuts such a as coconuts, cashew nuts and macadamia (Family Circle Books, 1997). The other raw materials available are strawberries and blue berries. Therefore, the factory just requires choosing the raw materials from the already available. In addition, different tastes of cheesecakes can be prepared using the different combinations of raw materials. Therefore this advantage makes the cheesecakes from Brazil more attractive to people since one can choose from different brands available.
Related and supporting industries.
Other industries that are present in Brazil are very supportive to the factory. The presence of these industries facilitates the establishment of the cheesecake factory. There are industries that manufacture biscuits and cakes. These industries provide part of raw materials required in the cheesecake making. The fact that there are various types of cakes manufactured by different industries means that there are chances of making different brands of cheesecakes. In addition, these many factories ensure that the cheesecake factory will continuously receive the supply of the required raw materials (Family Circle Books, 1997).
Agricultural industry is also well developed in Brazil. There is continuous production of crops in the country. The advantage of this to the factory is that there will be enough supply of agricultural raw materials continuously in a given year. Some of the agricultural raw materials needed for cheesecake making include strawberries and nuts.
There are many other deserters that are common in Brazilian restaurants that compete with the cheesecakes. They include fruits, cakes and eggs (Reynolds , 2001). However, the customers are likely to go for cheesecakes due to the fact that the cheesecakes are healthy and sweet. This is because they are made using low cholesterol oils from nuts. Therefore the factory products will compete favorably in the market.
The factory will have a strategy that will ensure its competitiveness in the market. The factory will produce various brands of cheesecakes to suit the demands of all the customers. In addition, the business will offer attractive prices for its products to ensure that they compete favorably in the market.
References.
Family Circle Books. (1997). Recipe encyclopedia: [a complete A-Z of good food and cooking]. New York: Crescent Books
Reynolds, J., & Chanin, M. (2001). The ultimate cheesecake cookbook. New York: St. Martin's Press.
Escritorio de Propaganda e Expansão Comercial do Brasil no Estrangeiro. (1944). Brazilian bulletin. New York: Brazilian Govt. Trade Bureau.
