The chocolate industry is today, an atomic market with many competitors. To many brands, products, the customer is overwhelmed by chocolate products. This industry has the following 2 subcategories: Chocolatiers and Cocoa production. In our case we will discuss about three main and key players' chocolatiers: Nestle, Cadbury and Hershey. They are three worldwide companies battling to be the leader.
Nestlé: 190 years of passion
The Nestlé chocolate is at the beginning a story of pioneers, creators and entrepreneurs. François-Louis Cailler created in 1918 at the age of 23 years old, the first manufacture of chocolate automatic. Charles Amédée Kohler, Daniel Peter and Henri Nestlé had the same spirit of conquest and participated to the creation and development of the Swiss chocolate. Sharing their innovation and know-how, they launch with success in 1904 the first milk chocolate.
Cadbury:
The successful story began in 1824 with a young boy John Cadbury. He decided to open a shop in Birmingham, he sold coffee tea, drinking chocolate and cocoa at his shop. Concerning about the alcohol problem he thought that selling his products will be an alternative to alcohol and served as an alternative. His products had standards with high quality.
Hershey:
Hershey's company was at the beginning a small subsidiary of Milton Hershey's Lancaster Caramel Company. In 1983, the company started producing baked chocolate, cocoa and sweet chocolate coatings for the parent company's caramels. After few years of failure, Mr. Milton S. Hershey decided to sell the factory and began to produce chocolate.
[...] In those countries the labor of children is common and not seen as an unethical manner. It created tension and a big issue in the chocolate industry, because some chocolate companies refused to buy directly from these producers. In order to avoid child labor and the Chocolate Manufacturers Association (CMA) and the World Cocoa Foundation (WCF) created the Harkin-Engel Protocol, signed in September 2001. It is a great way to eliminate the child labor in the cocoa sector.[5] Economical: These include interest rates, taxation changes, economic growth, inflation and exchange rates. [...]
[...] The company value, means reducing the costs of production or raise the price of the product, it generates profit. Or create customer value, which means increasing the customer's willingness to buy. It is Cadbury case, even if they charge a relative high price, customers are willing to pay the price to get the product. For almost the same product, people will choose the brand they related too. Cadbury does that, increase customer willingness to pay so they can charge higher prices. [...]
[...] Having such a strong sense of quality associated with its products, Hershey has seen a great success all across its product lines. The third key success factor for Hershey is the ability to invent new products and keep existing customers. When Hershey decided to release a new product, the company spends numerous hours (and dollars) to ensure that the product will not only taste fantastically, but it will also be readily accepted into the market. Recently, Hershey released “take and “S'mores”, these products were all released within a similar time frame, and all met a great success. [...]
[...] ) In assessing the sustainability of competitive advantage in the industry, Cadbury appears to have a capability that is difficult to innovate. Even if today they are allocating and more and more budget [9]We have set an internal stretch target for 2007 of 15% of our sales to come from innovation, an increase from our 2005 innovation to sales ratio of and up from in 2003.” The consumers taste is changing rapidly and Cadbury need to follow to trend to be sure to meet its customers' needs. [...]
[...] Cadbury has a certain competitive advantage, by knowing how to do great and high quality products. Inimitable: It is had to imitate a chocolate product with a know-how of 200 years of history. The raw material is the same but the processing and how to cook is a secret kept by Cadbury. Organized: supported by organization? Yes. Cadbury is also a sustainable competitive advantage. [...]
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