Godiva Europe

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I. Introduction

Based out of Belgium, chocolate giant Godiva has built their business around an image of quality and luxury. Financial resources became abundant when Godiva was acquired by the powerful multinational Campbell Soup Company in 1974. Initially Godiva began as a Belgian company and branched out into the global market as opportunities allowed. Godiva International is comprised of three decision centers – Godiva Europe, Godiva USA and Godiva Japan – called the triadic enterprise. A recent reorganization effort by Charles van der Veken led to an operating profit of 13 million Belgian francs although he inherited a 10 million franc deficit when he inherited his responsibilities as president of Godiva Europe. Despite a recent surge in operating profits, Godiva Europe faces some challenges in their home market as well as the global market. Sales and consumer reactions to recent advertising campaigns have been negative in Godiva's home of Belgium. The company faces a challenge in presenting a new face of the company to consumers who are very familiar, yet also very indifferent to distinguishing brand names in chocolate. Godiva International is fortunate to be experiencing growth and positive reactions to the company's products in several markets around the world. The markets of Spain, Portugal, France, Japan and the United States appreciate and enjoy the quality that comes from the hand made chocolates by Godiva. However, these areas must be treated with care to ensure continued success. II. Situational Analysis

To facilitate a discussion of the Godiva Europe internal and external environmental factors, the S.W.O.T. analysis will be used to help identify key issues presented in the case. The S.W.O.T. analysis provides information about a company's strengths, weaknesses, opportunities, and threats. Each component is outlined below: Exhibit 1 – S.W.O.T. Analysis

StrengthsWeaknesses

oGlobal leader of luxury chocolates
oHigh-quality product
oStrong leadership
oCompany roots in Belguym
oStrong share of duty-free markets
oBelgian market is saturated
oProduction capacity
oConsumer Behavior
oHigh production costs
OpportunitiesThreats

oDifferentiate Corne Toison d'Or from Godiva brand
oCreate image specific to each consumer market around the world oCountries with expanding markets
oProduction capacity
oConsumer apathy towards hand-made chocolates
oFrench franchisees
oCorne Port Royal
oLeonidas

Strengths
Global leader of luxury chocolates
Godiva is fortunate to have strong brand recognition. Most consumers associate the Godiva brand with high-quality luxury chocolates. Part of their huge success is due to the fact that the Godiva company was acquired by Campbell Soup Company in 1974. this acquisition, a wealth of corporate experience was infused into Godiva. In addition to the management experience needed to lead the company to success, Godiva also had financial stability with Campbell's support. These factors combined led Godiva to their position as global leader of luxury chocolates. High quality product

Hand-made and hand-decorated chocolates distinguish Godiva in the global market from the ordinary chocolates purchased in department or discount stores. The company has always strived to maintain an image of luxury and the products sold around the world support this image. Strong leadership

The reorganization initiative fronted by Charles van der Veken led to phenomenal increase in operating profit. Despite inheriting a 10 million Belgian franc deficit upon acceptance of his role as president of Godiva Europe, van der Veken led the division to an operating profit of 13 million francs within one year. Van der Veken also initiated the restructuring of Godiva into a retail network. As a result of this restructuring, van der Veken also has set a goal for Godiva stores in the Triad Countries to be achieve the desired image of the company through redesign and...
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