Hershey is a leading global confectionery company that has been in business for over 120 years. The company is known for its iconic chocolate brands such as Hershey's, Reese's, and Kit Kat, as well as a range of other confectionery products such as gum and mints. In 2014, Hershey faced a number of challenges and opportunities in the marketplace, and a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis can help to identify the key factors that were influencing the company's performance at the time.
One of Hershey's key strengths in 2014 was its strong brand recognition and reputation. The company had a long history of producing high-quality chocolate and other confectionery products, and its brands were well-known and trusted by consumers around the world. This strong brand recognition and reputation helped Hershey to maintain a loyal customer base and to attract new customers, which was a key factor in the company's success.
Another strength of Hershey in 2014 was its diversified product portfolio. In addition to its core chocolate business, the company also offered a range of other confectionery products, including gum, mints, and snack bars. This diversification helped Hershey to mitigate the impact of any downturns in the chocolate market and to take advantage of growth opportunities in other areas.
One of Hershey's weaknesses in 2014 was its reliance on the U.S. market. While the company did have a significant international presence, the majority of its sales were still generated in the U.S. This reliance on a single market made Hershey vulnerable to economic downturns and other disruptions in the U.S., and could limit the company's growth potential.
Another weakness for Hershey in 2014 was its relatively high cost structure. The company faced significant costs related to production, marketing, and distribution, which put pressure on its profitability. In order to remain competitive, Hershey needed to find ways to reduce these costs or to increase its prices, which could be challenging in a highly competitive market.
One of the key opportunities for Hershey in 2014 was the growing demand for premium and specialty chocolate products. As consumers became more interested in high-quality, artisanal chocolate, there was an opportunity for Hershey to meet this demand with its own premium products. This could help the company to attract new customers and to increase its sales and profitability.
Another opportunity for Hershey in 2014 was the growing trend towards healthier eating and snacking. As consumers became more conscious of their health and wellness, there was an opportunity for Hershey to introduce healthier chocolate and confectionery products that would appeal to these consumers. This could help the company to tap into a new market and to expand its customer base.
One of the main threats facing Hershey in 2014 was intense competition in the confectionery market. The company faced strong competition from other leading chocolate manufacturers as well as from smaller, specialty brands. In order to remain competitive, Hershey needed to continuously innovate and differentiate itself from its competitors.
Overall, Hershey faced a mix of challenges and opportunities in 2014. The company's strong brand recognition and diversified product portfolio were key strengths, but it also faced challenges such as a reliance on the U.S. market and a relatively high cost structure. By leveraging its strengths and addressing its weaknesses, Hershey could take advantage of opportunities such as the growing demand for premium and specialty chocolate products and the trend towards healthier eating and snacking, and address threats such as intense competition in the market.
SWOT Analysis of Hershey
Confectionery companies like Nestle, Mars and Hershey have faced lawsuits accusing them of encouraging child labor and not informing consumers that the cocoa in their chocolates might have come from child labor, which is a major issue in the major cocoa producing region of West Africa. Hershey created a school called Hershey Milton School for orphan boys. Hershey has defended itself by announcing that currently they source 75% of the cocoa from certified sources and they plan to make it 100% by 2020. The company has always focused on one product and experimented with various techniques to perfect it. Some factors like increased competitor activity, changing government policies, alternate products or services etc. It ranked at the 34th position of Just Companies ranking in 2021.
Get this report delivered straight into your email inbox for free. Try to substantiate the strengths, weaknesses as objectively as possible in terms of what the Hershey does, how it does it, and where are there scope of improvements. This report is shared in order to give you an idea of what the complete Risk Analysis Report will cover after purchase. It will enable the firm to maintain its loyal customers with great service and lure new customers through other value oriented propositions. Such initiatives have made people trust the brand.
Websites are increasing in quality and ease for all users. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. As mentioned earlier even though The Hershey Company is successful at integrating small companies it has its share of failure to merge firms that have different work culture. These strengths not only help it to protect the market share in existing markets but also help in penetrating new markets. It is facing stiff challenges from international and local competitors.
The The Hershey Company is one of the leading companies in its industry. Sustainability initiatives to reduce global warming Political This section is available only in the 'Complete Report' on purchase. Compliance with child labour laws 3. Strategic Management Journal, 13 S1 , 111-125. Business Strategy Review, 14 2 , 8-10. This should open a window of opportunity for The Hershey Company in other product categories.
Lobbyists for the levy are insisting the government impose a 20% tax on candies. International expansion can increase business sales for the Hershey company 3. Core capabilities and core rigidities: A paradox in managing new product development. . Today it is one of the leading confectionery companies in the world, employing 21000 people globally. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. For example, a large number of outlets can be a strength in a growing economy or a weakness if the economy is going through a recession.
This would help increase sales in volumes and is feasible due to low inflation and cost S2, O3. Legal procedures have become expensive and long drawn process. White, Generic Business Strategies, Organizational Context and Performance: An Empirical Investigation, Strategic Management Journal7 1986. Hershey interest groups might not support Hershey anymore because they might think that Hershey is irresponsible to the community. You can use the following in your reference section in order to give credit to the source. Weaknesses No matter how successful a company is, there will always be weaknesses that the company faces. Countries have passed laws regulating the issue.
Beginning with chocolate coated caramels, the Hershey Chocolate Company was founded in 1894. However, despite the huge potential in Chinese market too, Hershey has not fared well in China, having been forced to sell off its Chinese brand Golden Monkey Candy. Even though the product is a success in terms of sale but its positioning and unique selling proposition is not clearly defined which can lead to the attacks in this segment from the competitors. Health Issues As we know that the sugar, milk, and fat-based products cause obesity, health attacks, and over-weight issues. You also agree to receive email updates from us on our new reports and solutions. Inflation in the economy is expected to remain low.
This means that a lot of people are now making purchases online. This report is shared in order to give you an idea of what the complete Subsidiaries, Partnerships and Collaborations Report will cover after purchase. European Journal of Forest Research, 126 3 , 413-420. The strategy of the Hershey Company expanding involves new products such as Twizzler Bites and Jolly Rancher Bites might have an effect on the Tootsie Roll Industries and it is a new product that competes with their chewy based products such as Sugar Babies, Sugar Daddy, and their Frooties line17. It will provide better clues regarding where customers are going and what trends Hershey can leverage.
Many new small chocolate manufacturers have emerged in different countries. Wrigley, Divisional Autonomy and Diversification PhD, Harvard Business School, 1970 M. They now consider the brand as part of their life and family. According to the 2004 Package Facts Report, The U. You also agree to receive email updates from us on our new reports and solutions.