Rogers Chocolate- Case Analysis

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Roger’s Chocolates|
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Case Analysis|
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Table of Contents
External Analysis
A. Chief Economic Characteristics 3
B. Five Force Analysis 8
C. Driving Forces10
D. Overall Attractiveness of Industry13
E. Group Map15

Internal Analysis
A. Identification of Business Strategy15
B. Financial Analysis17
C. SWOT Analysis19

Test of Winning Strategy
A. Fit Test20
B. Competitive Advantage Test21
C. Performance Test23
D. Identification of Strategic Issues24
E. Recommendations25
F. Revenues/Expenses Projections26
G. Internet Summary26

Appendix26

External Analysis
A. Chief Economic Characteristics
Chief economic characteristics| Com*| PP*| Perspective of industry’s insiders| Perspective of industry’s outsiders| Perspective of Company| Market size: Medium $167 million -Rogers chocolates are expensive, mostly sold in Canada and good for a limited clientele | (-)| (+) | | | | Market growth rate: Medium, Slow (Stage of the product life cycle-Growth Stage)-Although this is a food, Roger’s chocolate is higher end and only caters to a few| (+) | (-)| | | | Scope of rivalry-Broad: Many other companies make chocolate, quality and name are really only what changes| (+) | (-)| | | | Number of rivalries-Moderate-Not too many higher end competitors in comparison to overall chocolate makers | (-)| (+)| | | | Product differentiation-Strong Medium: many types/flavors of chocolate possible-i.e. milk, dark, white and can add jelly or bits of items to the actual chocolate like raspberries, strawberries, almonds etc…| (+) | (-)| | | | Buyer’s needs & Number of Buyers: (Many - Few) Many buyers of chocolate for fun and for cooking. There will always be a market for chocolate; although the higher end more expensive chocolate buyers are more limited| (-)| (+)| | | | Product Innovation Medium: some machinery may update but they still hand wrap and package the chocolates| (-)| (+)| | | | Pace of Technological change-Slowsome equipment may update but they still hand wrap and package the chocolates| (+) | (-)| With the changing of technology and equipment more efficient ways to produce come to fruition| Others may be able to make and wrap the chocolate cheaper| Although equipment may change they still finish the product the same| Economies of Scale:(Moderate)| (+) | (-)| | | | Conclusion: | (-)| (+) | | | |

Market Size-
Market size- The Canadian market size for chocolates, as of 2006, is around$167 million -Rogers chocolates covers about 11 million in sales for 2006. They draw about 54%of their sales from pre Christmas season alone, about 50% from Roger’s 11 retail stores, 10% from online and mail-order sales, the remaining sales were generated from Sam’s Deli. Market Growth Rate-

Market growth-the premium chocolate market is growing, a projected 2% growth annually but the overall chocolate market is slowing. To generate more sales Roger’s needs to have their name be known in a broader radius. There has been a rise for more quality chocolate and a health craze pushing the market for chocolate production opening up an opportunity for orders, sales and an increasing market. Even though they are a premium chocolate, they could put specialized catalogues out and get estimates on how they could mainstream the product into malls or grocery stores while maintaining their brands reputation and quality. Scope of rivalry-

Many other companies make chocolate, quality, cost and name are really only what changes There are only a few high end chocolate competitors-Godiva, Bernard Callebaut, Lindt, Purdy’s, Rocky Mountain Chocolate, and Laura Secard and many other lower cost brands, Hershey,...
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