Rogers' Chokolates
Strategic Management MBA-743
Rogers’ Chocolates Case Study Solution
1. Using Porter’s characteristics, describe the interfirm rivalry in the chocolate industry. What are the strengths/weaknesses of Rogers’ Chocolates’ major competitors?
Supplier
S
M
W
Effect on Competition (increase and decrease)
Industry attractiveness
Availability of Supplier products
√
Increase
Decrease
Criticality of suppliers product
√
Increase
Decrease
No. of suppliers
√
Increase
Decrease
Cost of switching
√
Increase
Decrease
Backward integration
√
Increase
Decrease
The suppliers of chocolate raw materials bargaining power is moderately high, thus, this decreased the attractiveness to think about switching suppliers or trying to get substitute products.
As we read in the case, Rogers is now supplying their raw materials from an African supplier which does not take into consideration the social responsibilities and have law human rights interest, although this does not give a high level of certainty, we should take this into consideration.
Buyers
S
M
W
Effect on Competition (increase and decrease)
Industry attractiveness
Cost of switching
√
Increase
Increase
Degree of commoditized
√
Increase
Increase
Size of buyers to sellers
√
Increase
Increase
Buyers demand strength
√
Increase
Decrease
Knowledge of products, costs, and pricing
√
Increase
Decrease
Discretion in delaying purchases
√
Increase
Decrease
Price sensitivity
√
Increase
Decrease
Customers were loyal to Roger’s in certain areas around Canada, which makes it difficult for them to substitute to another product even though the price was partially higher. Anyhow, some criteria showed that industry is attractive as the buyers have low cost of switching products bearing in mind that some already existing competitors have high quality and attractive packaging. In addition the brand awareness is week as some clients
Rogers’ Chocolates Case Study Solution
1. Using Porter’s characteristics, describe the interfirm rivalry in the chocolate industry. What are the strengths/weaknesses of Rogers’ Chocolates’ major competitors?
Supplier
S
M
W
Effect on Competition (increase and decrease)
Industry attractiveness
Availability of Supplier products
√
Increase
Decrease
Criticality of suppliers product
√
Increase
Decrease
No. of suppliers
√
Increase
Decrease
Cost of switching
√
Increase
Decrease
Backward integration
√
Increase
Decrease
The suppliers of chocolate raw materials bargaining power is moderately high, thus, this decreased the attractiveness to think about switching suppliers or trying to get substitute products.
As we read in the case, Rogers is now supplying their raw materials from an African supplier which does not take into consideration the social responsibilities and have law human rights interest, although this does not give a high level of certainty, we should take this into consideration.
Buyers
S
M
W
Effect on Competition (increase and decrease)
Industry attractiveness
Cost of switching
√
Increase
Increase
Degree of commoditized
√
Increase
Increase
Size of buyers to sellers
√
Increase
Increase
Buyers demand strength
√
Increase
Decrease
Knowledge of products, costs, and pricing
√
Increase
Decrease
Discretion in delaying purchases
√
Increase
Decrease
Price sensitivity
√
Increase
Decrease
Customers were loyal to Roger’s in certain areas around Canada, which makes it difficult for them to substitute to another product even though the price was partially higher. Anyhow, some criteria showed that industry is attractive as the buyers have low cost of switching products bearing in mind that some already existing competitors have high quality and attractive packaging. In addition the brand awareness is week as some clients