Greggs company concept to Romania

 

Company Background

Gregg’s inception occurred in the 1930s where the Company focused on delivering eggs and years on a bike to families in New Castle upon Tyne. Jon Gregg, the company founder, opened a small bakery shop in New Castle on Gosforth high street in 1951, following positive feedback from his immediate customers. Through this single shop, Jon Gregg’s popularity grew from baking high quality bread from finely milled wheat which gave his products a distinctive sense of taste and texture. The Company’s expansion began in 1984 after John Gregg’s death, and Ian Gregg took over the business.  The Company expanded to up to 5 shops within the nearby regions. Ian oversaw the Company through to the 21st century (Greggs, 2021). In the 1970s, Ian further expanded the business beyond northern England, and by 1974, Gregg had acquired properties across different regions (About Gregg, 2012). The management switch hands in 1984 with Mike Darington as the managing director. Mike shared the company mission and visions and further expanded the business by opening 260 within two decades. Gregg was listed on the stock exchange and has continued to depict immense expansion in the midlands. And in North London (Greggs, 2021). Today the Company has over 1600 stores globally and aims at launching 600 more stores within the next few years. Notably, the Company achieved revenues of 734.5 million in 2012 (Greggs, 2021). The Company’s operating profit also increased to 51.8 million in 2012. The Company has tried to enter into new foreign markets such as Belgium, which closed down following their considerable concentrations in the UK market.  Recently, the Company seeks to enter Romania, and this report will provide a strategic external analysis using Porter Five Analysis and the Pestle analysis business tools.

Entry into new markets

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Over the past years, Gregg has tried severally to entrant foreign markets. Some of these entrants have proven successful, while others have been deemed disappointing. The first time Gregg expanded into international markets was when they opened a market in Belgium. However, the stores were closed down following high competition levels and lack of a strategic management strategy. Gregg aims to look back at their failures and venture into a new market, Romania, Europe. Greggs Inc. There are various reasons why a company chooses to branch into other markets locally and internationally, thereby increasing their increasing company growth, increasing their customer base, reducing labor costs, and gaining a competitive advantage are some of the key concerns. According to Greggs Chief Executive Ken McMeikan, “Over the past two years particularly, I’ve been travelling to different parts of the world and trying to look at the countries where I believe there is demand from a customer base in terms of their tastes, and also maybe where there is a competitive opportunity for us to go into those countries.”. Therefore, depending on the market, these factors should be of primary concern before the Company decides to venture into European markets by conducting business analysis tools to determine whether or not Greggs can venture into the country.