Case Study: Roger's Chocolates

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  • Topic: Chocolate, Types of chocolate, The Hershey Company
  • Pages : 7 (2307 words )
  • Download(s) : 553
  • Published : August 9, 2010
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Executive Summary
Success of any businesses organization is determined by factors such as financial, management & operational. Financial factors address use of capital in business and flow of cash through various processes within the organization. Management factors are linked to organizational structure of the enterprise. Whereas operational factors address how available resources are used to achieve objective of the organization. Apart from these three factors, environmental factors like competition also determine success of any business organization. This paper explores transformation that Rogers’ Chocolate Company has undergone since its establishment. The paper also investigates competitive strategy of the company against its close competitors.

Question 1 – What is competition like in the premium chocolate industry? Which of the five competitive forces is strongest? Which is weakest? What competitive forces seem to have the greatest effect on industry attractiveness and the potential profitability of new entrants?

Competition in premium chocolate industries is based on regional brands (Zietsma, 2008; Ellis, M. et al, 2007). Forces that accelerate competition among premium chocolate industries include variation in quality of products and other services offered to customers. Various premium companies have individual techniques that ensure delivery of high quality product in the market. In addition to product quality, price of the product is another area where competition arises. Depending on the production cost, different premium industries offer different prices in the market. Packaging and physical presentation of the products is another avenue for competition in premium chocolate industries (Harcourt-Cooze, 2009). Company that offers attractive products especially targeting younger generation dominates the market. Furthermore, advertisement methods and geographical distribution is also a potential area for competition (Siedel, 2002). A high sale is realized in company whose product is mostly spread and common. From these forces, geographical distribution emerges to contribute much in hastening competition among chocolate companies. Even though all forces stated above hastens competition among these chocolate companies, product quality surface to have least impact on extent of competition (Zietsma, 2008). Attractiveness and profitability of chocolate products is determined by how the product is molded, colored, and packed (Ellis, M. et al, 2007). Packaging therefore, plays a role in ensuring manufactured product appears attractive in the market. To a customer, nature of wrapping materials tells more about quality of the item delivered. High profit is thus realized if the product is attractive to the customer. Advertisement methods used in promoting the product also determine how attractive the product would be in the market (Dahl, and Blake, 2007). In chocolate companies targeted consumers are youths, therefore, sexy advertisements incorporated with modern technology lures most young people to purchase more chocolate. Geographical distribution of newly launched product also determines profit received from that particular product. To ensure high attractiveness and profitability, a company ensures wide distribution of its new entrant. Question 2 – How is the premium chocolate industry changing? What are the underlying drivers of change and how might those driving forces individually or collectively change competition in the industry? The company has undergone change in ownership (Zietsma, 2008). Ownership of Rogers Company has changed since the death of its founder Charles Candy Rogers. From family ownership, the firm was sold to one of the customers after Charles’ death. Another prominent area of change is in production planning. One aspect of improved production planning is in packaging of manufactured chocolates. Rogers’ Chocolate Company initially used manual way of wrapping chocolates. Although the...
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