Logistics and Supply Chain Management (PDF)

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Running head: LOGISTICS AND SUPPLY CHAIN MANAGEMENTLogistics and Supply chain managementName of the StudentName of the UniversityAuthor Name
1LOGISTICS AND SUPPLY CHAIN MANAGEMENTMarket Size of retail chocolate in AustraliaChocolate is one of the most desired Confectioneries in Australia. Due to the highdemand for chocolates, the market size of chocolate in Australia is pretty high. Chocolateconsumption in Australia being 6.3 kg per capita, is considered to be one of the highestconsumption rates in Switzerland and United Kingdom (Minifie 2012). The chocolate factory ofAustralia has grown by 4 percent in 2017. According to researchers, the high demand forpremium chocolates can be considered as one of the crucial reasons behind the growth of thechocolate industry. It has been also found that health conscious consumers, instead of consumingsubstitute low calorie Confectioneries, are indulging in chocolates that are of low calorie andmade from yoghurt. The yearly revenue of the chocolate industry in Australia in the year 2017 is2,590 million dollars. Researchers stated that, within the year 2018 to 2021, the market size ofthe mentioned industry will increase by 2.7 percent due to the high demand for the premiumchocolates (Davies and Kitchen 2015).Chief participants of the Chocolate industry of AustraliaThe chocolate industry of Australia is highly dominated by the Mondelez International,the founder of Cadbury. The mentioned company dominates the Australian Chocolate industrywith a market share of 55 percent (Minifie 2012). When it comes to market share, the MarsChocolate company stands in the second position with a market share of 18 percent of theAustralian chocolate industry. The Nestle Company has the market share of 14 percent and it isone of the most popular chocolate companies in Australia. Other major participants of theAustralian chocolate industry include Kraft Foods, Ferrero Group, Lindt Company, HarsheyFood Corporation and Unilever Group Strauss Elite (Gallo, Antolin-Lopez and Montiel 2018).
2LOGISTICS AND SUPPLY CHAIN MANAGEMENTDescription of an Australian Business that exports chocolatesCrest Chocolate company can be considered as one of the major exporters of chocolate inAustralia. The company chiefly manufactures, wholesale and exports premium chocolates inoverseas countries like Switzerland, United Kingdom and other European countries. Establishedin the year 1950, the Crest Company is a local company of Brisbane and is a family owned andoperated company (Aung and Chang 2014). The Crest Company has gained huge popularityacross Australia, due to the high quality of the premium chocolate manufactured by it.Will the supply chain for the newly expanded business need to be differentiated on thebasis of multiple sales channels?Considering the fact that the Cardinale Company is planning to expand its marketthrough both online and offline marketing, the company needs to enhance its production as wellas supply chains in order to meet the demand of its potential consumers. The Cardinale familyshould consider that being one of the largest online marketing media, that Amazon will introduceCardinale chocolate to a huge number of customers. Since the chocolate produced by thecardinal family is of high quality, it is expected that the demand for the chocolate will riseabruptly among the consumers (Jia et al. 2016).Manufacturing changes for selling product through AmazonBeing a local company the Cardinale Company currently manufactures chocolates for localconsumers only. However, if the company expands its market through Amazon which is one ofthe largest online platforms, it is expected that the demand for the premium chocolate made bythe company will increase to a large extent. Hence Cardinale Chocolates should enhance itsproductivity by recruiting more and more staffs who will assist the family to make premium
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