Niche Bakeries
Niche bakeries are becoming more popular though the last few years. These types of bakeries specialize in a certain type of baked goods and showcase them for their customers as well as having other types of more common baked goods available. This is the type of business that I would create. My niche bakery would specialize in individual cupcakes and pies as well as baking larger cakes and pies to order. Local customers will consist of area residents, business owners and students that can easily walk over to the bakeries location while on lunch break or after school and work to purchase what they want, and with the Internet available, I can expand my consumer base and ship my goods all over the United States. Customers can place their orders online, and I will be able to ship the product to their door. The area in which I reside does not have a type of bakery like this. We currently have a Wal-Mart and a Kroger’s Grocery if we want to purchase baked goods. While they are both good and they are also cheap considering their product, my bakery would offer a fresh home baked quality of product that could offer them some competition. I would say in this area, my niche bakery would be a monopoly market as that it would be the only one in this location. I would be able to set the prices for my product but would still need to keep in mind that if the price is too high, my potential customers will go back to purchasing their goods from the grocery chain bakeries. Looking at a broader area as with the Internet, I could say that I am in a monopolistic competition. Each niche bakery that sells baked goods such as this have relatively the same pricing, no one business sets the price for the other businesses. It is still a smaller industry but there are others in which I must compete for business. So advertising and a well made website will figure prominently in showcasing the goods I am selling in the best possible light. Elasticity of demand in a bakery is very
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