Essay on Evaluating The Hershey Company Through Porter 's Five Forces Analysis

Essay on Evaluating The Hershey Company Through Porter 's Five Forces Analysis

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consumers continue to trade up for indulgent, high-quality products” (The Hershey Company , 2013). When evaluating the Hershey Company through Porter’s Five Forces analysis, the threat of new entrants is low because of the occurrence of economies of scale, the variance in products that are produced, the need for large capital requirements, the being of switching costs, the absence of access to distribution channels, and the regulations that are in place for the food manufactures. A hefty number of buyers and the relatively low-slung profits from the product amplify the bargaining power of prospective buyers. The bargaining power of suppliers is decreased because the supplier does not shame any likely threat of forward integrations. The prominence of the supplier’s product to the industry is moderately high. The threats of substitute of products in the cocoa/ chocolate business are high. The industry must compete with alternate cooking flavors and strategies while competing with other sweet snacks. They must also conquer the others in the retail subjects. Many different companies develop specialty chocolates or candies, mostly around the holiday season as alternate gifts. The chocolate industry’s intensity of rivalry among competitors is very high. The industry has numerous competitors, high storage and fixed costs, and has elevated exit barriers. Each and every condition creates numerous pricing competitions, advertising battles, and new product lines.
Internal Environment
Distinctive Competency/ Sustainability
Being the leading chocolate producer of chocolate; they also produce a variety as well as sell items that are non-chocolate such as Jolly Ranchers, Twizzlers, & Payday. Hersheys shockingly targets the gum and mint mark...

... middle of paper ...

... SWOT analysis stands for Strengths, Weaknesses, Opportunities and Threats; these are potential strategic factors for any particular company.
Strengths: Hershey’s has a very strong name brand as well as image. They have a patent on the tear drop candies known as a “Kiss.” They continue being America’s largest chocolate company to date. They offer a wide variety of chocolate and sugar confectionery products. This chocolate company is known worldwide for having the largest chocolate factory in the United States. Did you know, in the United States they’re also the owners of the largest pasta manufacturer too? Hershey’s is a multi-segment industry. They focus on more than just chocolate.
Weaknesses: A major weakness for Hershey’s is the price variable in cocoa. Prices continue to rise on everything as our economy changes day to day. The economy has an effect on cocoa

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