The Hershey Company is the leading confectionary producer in North America. It was founded in 1894 by Milton Hershey. Its key products are Hershey’s, Hershey’s Kisses, Reese’s, Jolly Rancher and Ice Breakers.
The mission of Hershey’s is encapsulated in the following words: “Bringing sweet moments of Hershey happiness to the world everyday.” Sweet moments refer basically to the confectionary products that Hershey produces, though in a broader sense, it refers to the experience of eating their products not on a solitary mode but shared with members of the family, friends and community at large. This is an experience of happiness that Hershey seeks to spread to the world on a consistent basis.
Hershey is faced with stiff competition coming from other confectionary makers as well as other food producers with confectionary lines. Among the main competitors are Nestle, Mars, and Cadbury. Based on Porter’s Five Forces, these three other companies are the industry rivals of Hershey, and based on a Competitive Profile Matrix that is done, these three all outpace Hershey.
Other forces that threaten Hershey as well are mainly suppliers and buyers. Suppliers hold sway in as much as confectionary products are dependent on the component parts such as cocoa and sugar. Supply and demand movements on these products impact the ability of Hershey to fulfill its mission.
Buyers are as ever a determining factor in any consumer product. As consumers, they dictate a lot of factors that push and pull the strategy of the company. From company’s perspective, buyer’s preferences are swayed by the product’s quality and price. And from the buyer’s perspective, they would always consider the products based on whether that product is a need or a want, and of course, their purchasing power would come into play later on.
Based on the SWOT analysis that is done in this study, Hershey must maintain its strength in the North American domestic market and use as a springboard for its...
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