Grupo Bimbo SWOT & PESTLE Analysis
COMPANY PROFILE -Grupo Bimbo
Business Sector :Food Processing
Operating Geography :Mexico, North America, Global
About Grupo Bimbo :
Grupo Bimbo is a bakery product manufacturing company established in 1945 and is headquartered at Mexico City, Mexico. It is the world’s largest baking company and has a wide distribution channel across different countries. The first product that Bimbo launched was cellophane wrapped large and small loaves of bread (both normal and toasted) and since then they have been venturing into manufacturing different bakery products, expanding operations across different sites and acquiring other bakery companies. Grupo Bimbo has reached record levels in net sales, gross profit and operating income. The market penetration has been increasing to more than 3.3 million point of sales served. This Mexican multinational bakery product manufacturing company has recently become the second largest player in China with the acquisition of Mankattan. They have also strengthened their position in Chile by acquiring Nutra Bien. There have been different success drivers for them. However this industry remains highly fragmented with 4.5% global market share and low household penetration rates which is indicative of massive future growth potential.In 2020, the baking baron expanded its operations to Kazakhstan, broadening its global leadership to 33 countries. Grupo Bimbo’s vision statement reads “In 2020 we transform the baking industry and expand our global leadership to better serve more consumers. Grupo Bimbo’s USP or unique selling point lies in being the worlds largest baking house with one of the widest distribution networks in America and Mexico.
Grupo Bimbo Revenue :
Mexican Pesos 291,926 million– FY ended Dec 31st 2019 (growth 0.9%)
Mexican Pesos 289,320 million– FY ended Dec 31st 2018
Competitive Analysis of Grupo Bimbo
| Strengths | Weaknesses |
| 1. Exceptional distribution network across 30+ countries 2. Strategic acquisitions and robust financials 3. Global leaders in the baking industry with 100+ high value brands 4. Deploying digital tools and leveraging technology across the supply chain 5. Clean label policies usher in transparency and trust attracting improved consumer perception | 1. Baking Industry is highly fragmented across the world 2. Grupo Bimno houses several popular brands, but the global penetration is low |
| Opportunities | Threats |
| 1. Frozen food market is the new opportunity amidst COVID’19 2. Meeting demands of rural market | 1. Change of consumer food preference and moving towards a “Low-Calorie” diet. 2. COVID’19 has affected global operations |
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Detailed SWOT Analysis of Grupo Bimbo
Strength
1. Exceptional distribution network across 30+ countries: Grupo Bimbo produces around 13000 products (fresh and frozen), houses 100 and has an outstanding, also the largest digitally driven, supply chain network, with more than 3 million point of sale on 58000 routes. In terms of logistics and supply chain, Grupo Bimbo has been trying to optimize transportation and make it more efficient and sustainable. The distribution network is being reshaped by introducing digital applications like ERP software and Oracle Cloud to manage inventory. Grupo Bimbo has become much quicker and more flexible in managing their logistics operation. Artificial Intelligence has also helped the company to improve on demands and forecasts. This has ultimately increased the decision making power which in turn benefits customers worldwide. Grupo Bimbo is making sure that instead of products having low shelf life or short life cycle it reaches every retail outlet and every customer every day and that too in its fresh form. Grupo Bimbo has been aiming to get a place in Gartner’s global ranking for its Supply Chain and Logistic Operations through increased efficiency and optimization in distribution process.
The remaining section of “Strength” is available only in the 'Complete Report' on purchase.
Weakness
This section is available only in the 'Complete Report' on purchase.
Opportunity
1. Frozen food market is the new opportunity amidst COVID’19: Frozen food like ready to eat meals, sea food, soups etc. can be a very new segment for Grupo Bimbo. The current market value for frozen food is US $280.2 billion. It is expected to grow at a rate of 4.5% over the next 6 years. Grupo Bimbo’s solid financial position and an exceptionally well optimized supply chain and logistic operation can become boon if they venture out into the frozen food industry. Retail industry like supermarkets, convenience stores etc. have contributed in increase of sale of frozen food. Frozen food market also has different segments based on product type and consumption type. Ready to eat type meals have seen the fastest growth in this industry.
The remaining section of “Opportunity” is available only in the 'Complete Report' on purchase.
Threats
This section is available only in the 'Complete Report' on purchase.
Major Competitors :
- Hostess Brands, Inc.
- Gruma
- Grupo Corvi
Major Brands :
- Bimbo
- Oroweat
- Sara Lee
- Takis
- Artesano
- Villaggio
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References used in Grupo Bimbo Analysis Report
1. Grupo Bimbo: a digitally led, supply chain transformation - https://www.supplychaindigital.com/company/grupo-bimbo-digitally-led-supply-chain-transformation#
2. Mergers and Aquisition - https://grupobimbo.com/en/investors/mergers-and-acquisitions
3. 2019 Integrated Annual Report - https://grupobimbo.com/sites/default/files/Grupo-Bimbo-Annual-Report-2019_0.pdf
4. Risks Related to the Business, Industry and Supply - https://grupobimbo.com/sites/default/files/RISK-FACTORS_0.pdf
The detailed complete set of references are available on request in the 'Complete report' on purchase.
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Grupo Bimbo SWOT and PESTLE analysis has been conducted by Akshay Mohan and reviewed by senior analysts from Barakaat Consulting.
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