Cadbury's Porter's Five Forces Model

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Porter’s Five Forces Model Cadbury On By Shubham Sharma Porter's Five Forces Model - Cadbury - Shubham Sharma

Transcript of Cadbury's Porter's Five Forces Model

Page 1: Cadbury's Porter's Five Forces Model

Porter’s Five Forces Model

Cadbury

On

By –

Shubham Sharma

Porter's Five Forces Model -

Cadbury - Shubham Sharma

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• Cadbury is a British multinational confectionery company

owned by Mondelēz International.

• Cadbury is best known for its confectionery products

including the Dairy Milk chocolate, the Creme Egg, and

the Roses selection box.

• Cadbury was established in Birmingham, England in 1824,

by John Cadbury who sold tea, coffee and drinking

chocolate.

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• With annual revenues of approximately $50 billion, the

company is the world's second largest food company, making

delicious products for billions of consumers in more than 160

countries.

• It employ approximately 140,000 people and have operations

in more than 70 countries.

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• Bars

• Bags, Boxes and Rolls

• Multipacks

• Beverages

• Cooking

• Desserts

• Ice Creams

• Biscuits

• Miscellaneous

• And other things…..

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"Cadbury’s mission statement says simply: ‘Cadbury means quality’.

The Barrow Cadbury Trust’s vision is of a peaceful, equitable society, free

from discrimination and based on the principle of social justice for all.

• To make lots of chocolate.

• Improve the quality of their chocolate.

• To Survive in the market.

• Have loads of stores worldwide

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Porter five forces analysis is a framework to analyze level of

competition within an industry and business strategy

development.

It draws upon industrial organization (IO) economics to derive

five forces that determine the competitive intensity and

therefore attractiveness of an Industry.

Forces are –

Threat of new entrants

Threat of substitute products or services

Bargaining power of customers (buyers)

Bargaining power of suppliers

Intensity of competitive rivalry

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• Many businesses are competing against Cadbury and

planning to take over the supremacy the company has for

several years.

• Companies such as Nestle, Hershey’s, Ferrero etc. are

Cadbury’s main rivals.

• Rivalry will always be strong among these companies

because they sell from the same types of stores and their

products are similar in some respects.

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• The entry of competitors will be difficult because there are

already well established companies within this market.

• These include, mars, nestle, Ferrero, Kraft, Hershey’s and

Lindt.

• This makes the barrier for entry very hard for another new

company to start.

• They need high initial capital requirements.

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• Supermarkets tend to copycat popular chocolates (for

example nestle Kit Kat) and provide their own brand on the

shelves at a cheaper price.

• Confectionary is brought for snacks and gifts.

In this way, large no. of substitutes exists, like chips, fruits,

beverages, etc.

• Still chocolates scores higher than the substitutes as they

are easy to preserve.

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• Cadbury’s buyers are scattered all around the world and they

are in billions.

• The increasing number of competitors that offers the same type

of products at a lower cost might be the cause of customer

loyalty alteration.

• No switching cost for buyers.

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• Large number of suppliers.

• Cadbury has higher bargaining power than its suppliers.

• Cadbury can buy their raw materials for cheaper and more in

bulk than a medium sized business could.

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• Cadbury is a well-established firm with customers spread in

whole world.

• It is difficult for other firms to overcome its popularity.

• Economical distribution using proper supply chain

management is necessity.

• Brand loyalty should be maintained.

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Thank You….All

And Thank You….Porter's Five Forces Model -

Cadbury - Shubham Sharma