Summary
Summary SWOT on Cadbury
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- AQA
A detailed SWOT analysis on Cadbury chocolate
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Ambika ParmarSWOT analysis for Cadbury chocolate:
A SWOT analysis is used to assess the competitive strength and the nature of its
external environment. In relation to Cadbury, a SWOT analysis can be used to gain a
better understanding of the business.
Strengths:
Cadburys has a strong manufacturing process which can adapt to changing
consumer tastes and meet these changing demands which then leads them to
becoming a huge global brand. Another strength of Cadbury is that it has a lot of
financial stability, with sales of over £7000 million and therefore are even able to
open up international markets in order to achieve a higher market share and
profitability. With the use of social media, it has allowed Cadbury to be very
successful especially with the use of adverts as it gains the customers attraction
towards the chocolate and the company, which can then lead to higher brand
recognition and loyalty. Moreover, Cadbury has many strong brands in its products
portfolio like Dairy milk or Oreo and these products are high quality which means
there are more likely going to be cash cows.
Weakness:
Cadbury’s packaging of certain chocolates is not bio-degradable which means costs
will be high. Another weakness of Cadbury is that there was salmonella poisoning
which meant that brand reputation and loyalty was damaged. In addition, entering
new markets require high investment which can be possible due to Cadbury being
part of Mondelez, but may also place Cadbury in direct competition with other
brands.
Opportunities:
Cadbury should take the opportunity to operate in rural markets. Penetrating and
distribution in rural markets can be a large opportunity for Cadbury. It is presence in
foreign countries and a rural presence is much needed for Cadbury which will boost
the brands presence and turnover. Another opportunity for Cadbury is to innovate
with the luxury items for example green and black in order to increase its products
and gain higher sales. Furthermore, production can also be moved to lower cost
countries where labour costs are cheaper which would help with cost savings and
Cadbury can therefore benefit from economies of scale.
Threats:
A threat of increased costs such as fuel, transport, packaging and sugar across the
world will impact on Cadburys profit margin and its increase in pricing (price
skimming or penetration). Another threat of Cadbury is that the demand of the
products may also be impacted by increased concerns regarding obesity and
consumers becoming more health-consciousness. This may require them to
increase its research and development to reduce the calorie content of its products
and maybe introduced vegan chocolates with the help of customer testing.
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