Strategic Analysis of Cadbury
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Added on 2020-01-28
Strategic Analysis of Cadbury
Added on 2020-01-28
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Strategic analysis
Table of ContentsINTRODUCTION....................................................................................................3STRATEGIC ANALYSIS PORTFOLIO........................................................................3About the companies ......................................................................................3Mission, Vision and Objective...........................................................................3Issue faced by the companies.........................................................................4BCG Matrix analysis.........................................................................................5Strategies used by the companies...................................................................6Impact of the strategy.....................................................................................7Blue Ocean/Red Ocean....................................................................................8Pursuit off competitive advantage...................................................................8Conclusion...........................................................................................................9REFERENCES......................................................................................................10
INTRODUCTIONStrategic analysis portfolio is a tool used by companies to identify the strategicchoices made by them. The company's portfolio analysis is done to evaluatechallenges faced by it and solutions adopted to resolve them. Strategic analysis alsoassists companies to identify the current strategic options for various product createdby them (Büyüközkan and Çifçi, 2012). This is done to achieve competitive advantagein the market over competitors. The research discusses strategic options opted byCadbury and Peppersmith. Both the above confectioneries have faced variouschallenges and in order to achieve company’s long term objectives, they formedstrategic options. These strategies and options are discussed in the research. STRATEGIC ANALYSIS PORTFOLIOAbout the companies Cadbury was founded in 1824 in Birmingham, United Kingdom by John Cadbury.The company is among the widely known confectionery brand of the world (Capar andet.al., 2013). It is the second most liked brand after Wrigley's. It has many productslike Dairy Milk Silk, Brunch bar, Bubbly, Marvellous Creations, Big Race Oreo, pebblesand many more. Moreover, bars like Fudge, Curly Wurly, Wispa, Caramel etc. are alsomanufactured under Cadbury. It operates in more than 60 countries with more than50,000 employees. On the other hand, Peppersmith was founded in 2009 by MikeStevens and Dan Shrimpton (How xylitol works, what it is and why it’s good for you,2016).Although, it is new in the confectionery industry, it is accredited by British DentalHealth Foundation. They produce sugar free xylitol chewing gums and mints madewith any preservatives or artificial flavours. Mission, Vision and ObjectiveCadburyPeppersmithMission- with the statement“cadbury means quality”, theystrive to achieve quality andcontinuous improvement in theirproduct (products,2016). Mission- To be challengingenough for the competitorsthrough innovation, passion andthinking.
Vision- To work together tocreate a brand that is loved byall. Vision- To create high return oninvestment through hard workand customer satisfaction. Objectives- To increaseperformance,respect,responsibility and achieveintegrity. Objectives- Their objective is tocreate something new and todiffer from the status quo. Issue faced by the companiesCadbury has faced many challenges in the past. The major issue was faced in2006 when the company detected that it had Salmonella bacteria strain in itschocolate. It challenged in European legislation and the company pleaded guilty forthe same (Tsakona and et.al., 2013). On the other hand, Peppersmith entered in theconfectionery market with a new and innovative product. The main concern for thecompany was to establish itself in the fiercely completive market of the UnitedKingdom. As Cadbury lost its reputation in the market and its goodwill for being themost quality concern company, therefore it decided to formulate a new strategy to re-establish itself in the market. Peppersmith in the contrary decided to bring innovationin itself through no-plastic chewing gums and mints with xylitol in them. This was doneto achieve competitiveness among competitors.Image 1: BCG Matrix Diagram(Source: The BCG Growth-Share Matrix, 2016)BCG or growth-share matrix was created by Bruce, D Henderson in 1970. This matrixhelps the organisation in analysing their business units or product lines. The matrixlocates their growth and market share based on the study of their branding, marketing
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