Case Study: Roger's Chocolates
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
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
References: Dahl, Roald and Blake, Quentin (2007) Charlie and the Chocolate Factory. Puffin. Economy Watch (2010) Liabilities. Stanley St Labs. Accessed June 23, 2010 from http://www.economywatch.com/budget/india/liabilities.html Ellis, M. et al. (2007) The Hershey Company Introducing the World of Chocolate. San Francisco: Brass Knuckles Publications. Ellis, M. et al. 2007. The Hershey Company Introducing the World of Chocolate. San Francisco: Brass Knuckles Publications. Harcourt-Cooze, W. (2009) Willie 's Chocolate Factory Cookbook. Hodder & Stoughton Kennon, Joshua (2010) Chase Candy Company – A Business Profile of a Regional Chocolate Maker. Company Profiles and Analysis. La Rocco, C. (2010) Keeping It Small at the Chocolate Factory. The New York Times, Tuesday May 25, 2010, p.1 Siedel, J., G. (2002) Using the Law for Competitive Advantage: J-B-UMBS Series. Jossey-Bass. Victoria Times Colonist (2010) Rogers ' Chocolates sweet on Canadian Navy 's 100th anniversary celebrations. Canwest Publishing Inc.