PEST ANALYSIS
Political
My Cupcake Fantasy prides itself on its fair trade products. For all of our chocolate cupcakes and frosting, we make it from scratch using Fair Trade cocoa from Ghana and Cote D'Ivoire.
Since these countries are still relatively unstable and are developing countries, any political instability could result in a ban on exporting or an increase in taxation. If we cannot import the cocoa, our reputation of using only fair trade cocoa could be damaged. furthermore, buying from suppliers at ethical policies is a huge attraction for consumers which could be impacted and affect the revenue of the business. In addition, we also buy fair trade sugar which is used in all of our products. One problem that we are facing is the rising prices of sugar. This in turn makes the price of our cupcakes very high and makes it almost a luxury product. This makes us appeal to a small population of people. However, living in Dubai, people are accustomed to a high standard of living so luxury products would appeal to a lot of people.
Economical
Since our product is quite specialised, the prices are quite high. in the event of extreme inflation or a recession, foods like cupcakes and decadent desserts become a luxury to a lot of people and become something that can be avoided. In this case, in order to keep the revenue up and have customers buy our products, we may have to decrease the price of our products and since it is a luxury product, it is quite an elastic product since it is not a staple for the home. However, My Cupcake Fantasy may suffer some losses since we do pay a high price for our supplies.
Social:
People are becoming more health conscious lately so foods like cupcakes that are high in sugar can become less popular, especially with parents buying it for their children. Furthermore, trends are constantly changing and with desserts and pastries, the trends can change as well. Some examples of trends in Dubai include, frozen yoghurt, international dessert shops (magnolias bakery, hummingbird bakery, ben's cookies). As these develop, sometimes the sale for the old trends can decrease.
Technological:
Technology does not play a huge impact on a dessert shop however, as technology does improve, it can allow us to make our website and our business more well known to the public especially when we consider expanding out to other countries. New cooking products could make the process more effective and increase productivity.
My Cupcake Fantasy prides itself on its fair trade products. For all of our chocolate cupcakes and frosting, we make it from scratch using Fair Trade cocoa from Ghana and Cote D'Ivoire.
Since these countries are still relatively unstable and are developing countries, any political instability could result in a ban on exporting or an increase in taxation. If we cannot import the cocoa, our reputation of using only fair trade cocoa could be damaged. furthermore, buying from suppliers at ethical policies is a huge attraction for consumers which could be impacted and affect the revenue of the business. In addition, we also buy fair trade sugar which is used in all of our products. One problem that we are facing is the rising prices of sugar. This in turn makes the price of our cupcakes very high and makes it almost a luxury product. This makes us appeal to a small population of people. However, living in Dubai, people are accustomed to a high standard of living so luxury products would appeal to a lot of people.
Economical
Since our product is quite specialised, the prices are quite high. in the event of extreme inflation or a recession, foods like cupcakes and decadent desserts become a luxury to a lot of people and become something that can be avoided. In this case, in order to keep the revenue up and have customers buy our products, we may have to decrease the price of our products and since it is a luxury product, it is quite an elastic product since it is not a staple for the home. However, My Cupcake Fantasy may suffer some losses since we do pay a high price for our supplies.
Social:
People are becoming more health conscious lately so foods like cupcakes that are high in sugar can become less popular, especially with parents buying it for their children. Furthermore, trends are constantly changing and with desserts and pastries, the trends can change as well. Some examples of trends in Dubai include, frozen yoghurt, international dessert shops (magnolias bakery, hummingbird bakery, ben's cookies). As these develop, sometimes the sale for the old trends can decrease.
Technological:
Technology does not play a huge impact on a dessert shop however, as technology does improve, it can allow us to make our website and our business more well known to the public especially when we consider expanding out to other countries. New cooking products could make the process more effective and increase productivity.
SWOT ANALYSIS
Strengths:
- All Fair Trade produce
- Delicious Cupcakes specialised for you!
- Home Delivery
- Great location and store decor - makes for a fun social environment.
Weaknesses:
- We do not have cupcakes dedicated to peoples specific dietary needs.
- Our USP is mostly appealing to people with a high standard - could backfire on us
- All Fair Trade produce
- Delicious Cupcakes specialised for you!
- Home Delivery
- Great location and store decor - makes for a fun social environment.
Weaknesses:
- We do not have cupcakes dedicated to peoples specific dietary needs.
- Our USP is mostly appealing to people with a high standard - could backfire on us