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  • Subject Name : Management

Analyzing the Current Market Environment - PESTLE and SWOT Analysis

PESTLE Analysis

  • Political factors

The statutory regulatory bodies such as Food Standards Australia New Zealand (FSANZ) influence the bread-making brands such as Wonderwhite, Tip Top and private brand of Woolworths. It regulates the amount of Iodine and folic acid present in the bread items (Kelly 2019).

  • Economic factors

On inclusion of the value-adding processes, the agricultural supplies account for around 12 per cent of the overall GDP of the country’ which indicates a positive sign for Woolworths, Goodman Fielder and George Weston in terms of sales in the bread category (Anderson 2016).

  • Social factors

The dispensable income in Australia is virtuous. People tend to spend on groceries and bread as the essential items. As published by the Australian Food News, around 13.9 million people in the country eat bread (Horgan 2017). In the data published by Roy Morgan Research in the year 2016, it was witnessed that 11 million Australian grocery buyers buy bread at least once a week which is a positive facet for the considered bread companies under the retailing giants (Horgan 2017).

  • Technological factors

The technological drift in the personalized online shopping is requiring Woolworths, Goodman Fielder and George Weston to make available the loaves of bread in the optimum stock so that steady delivery can be ensured to the customers (Kelly 2019).

  • Environmental factors

The mounting climate change issues can negatively impact the production units of Wonderwhite, Tip Top and private brand of Woolworths in the country.

  • Legal factors

Food safety standards in Australia require the bread retailing brands to be more inclined towards healthy ingredients such as involving less gluten and ensuring fit-out of food premises (Kelly 2019).

SWOT Analysis

Goodman Fielder



§ The local competitiveness WonderWhite is high (Cross et al. 2020).

§ It is perceived as a provider of fresh-baked bread

§ It effectively targets the children’s health

§ Its calorific value does not fit well with the needs of the health-conscious market segment (Cross et al. 2020)



§ It can further expand in other market segments involving business professionals in terms of easy to make sandwich breads

§ Due to its narrow segment, it can easily be overtaken by the competitors




§ Woolworths is a big brand name and is among the largest Australian retailing chains (Haskins et al. 2020).

§ The bread is packed with wholemeal

§ Sourdough & Specialty Bread is delivered by Woolworths to the doorsteps of the customers

§ Ethical compliance issues of Woolworths often barricade the sales of its bread items (Haskins et al. 2020).



§ Apart from the Banana-bread launched, it can offer an array of fruit-customized loaves of bread to further lure customers

§ Elevating raw material costs for bread

George Weston



§ Strong distribution network

§ Adequate availability of the bread in the store

§ contracted portfolio of the healthier variants in bread



§ Can indulge in a whole meal and brown bread offerings

§ Specialty bakeries are emerging in the market (Lindberg et al. 2017).

Table 1: SWOT analysis

References for Current Marketing Analysis

Anderson, K., 2016. Competitiveness of Australia’s agricultural and resource sectors: past and prospective , 427.

Cross, R., Mills, C. and Gale, T. 2018. Thinking with Bourdieu about teachers’ pedagogies and their dispositions for social justice: unthinkingness in aspiration formation. International Perspectives on Theorizing Aspirations: Applying Bourdieu’s Tools, p.130.

Haskins, B., Nehme, Z., Cameron, P., Bernard, S., Parker‐Stebbing, L. and Smith, K. 2020. Coles and Woolworths have installed public access defibrillators in all their stores: It is time other Australian businesses followed their lead. Emergency Medicine Australasia32,1 pp.166-168.

Horgan, A. 2017. Australians still eating plenty of bread, Roy Morgan Research. Australian Food News. https://www.ausfoodnews.com.au/2017/03/29/australians-still-eating-plenty-of-bread-roy-morgan-research.html.

Kelly, L. 2019. Clarifying the regulation of genome editing in Australia: situation for food. In Transgenic research, 28,2 pp. 161-164.

Lindberg, R., Nichols, T. and Yam, C. 2017. The healthy eating agenda in Australia. Is salt a priority for manufacturers?. Nutrients9,8 p.881.

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