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Cadbury's Porter's Five Forces Model

Check out the slide to get the Porter's Five Forces review for the well-known chocolate company, Cadbury.

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Cadbury's Porter's Five Forces Model

  1. 1. Porter’s Five Forces Model Cadbury On By – Shubham Sharma Porter's Five Forces Model - Cadbury - Shubham Sharma
  2. 2. Porter's Five Forces Model - Cadbury - Shubham Sharma
  3. 3. • Cadbury is a British multinational confectionery company owned by Mondelēz International. • Cadbury is best known for its confectionery products including the Dairy Milk chocolate, the Creme Egg, and the Roses selection box. • Cadbury was established in Birmingham, England in 1824, by John Cadbury who sold tea, coffee and drinking chocolate. Porter's Five Forces Model - Cadbury - Shubham Sharma
  4. 4. • With annual revenues of approximately $50 billion, the company is the world's second largest food company, making delicious products for billions of consumers in more than 160 countries. • It employ approximately 140,000 people and have operations in more than 70 countries. Porter's Five Forces Model - Cadbury - Shubham Sharma
  5. 5. • Bars • Bags, Boxes and Rolls • Multipacks • Beverages • Cooking • Desserts • Ice Creams • Biscuits • Miscellaneous • And other things….. Porter's Five Forces Model - Cadbury - Shubham Sharma
  6. 6. "Cadbury’s mission statement says simply: ‘Cadbury means quality’. The Barrow Cadbury Trust’s vision is of a peaceful, equitable society, free from discrimination and based on the principle of social justice for all. • To make lots of chocolate. • Improve the quality of their chocolate. • To Survive in the market. • Have loads of stores worldwide Porter's Five Forces Model - Cadbury - Shubham Sharma
  7. 7. Porter's Five Forces Model - Cadbury - Shubham Sharma
  8. 8. Porter five forces analysis is a framework to analyze level of competition within an industry and business strategy development. It draws upon industrial organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of an Industry. Forces are –  Threat of new entrants  Threat of substitute products or services  Bargaining power of customers (buyers)  Bargaining power of suppliers  Intensity of competitive rivalry Porter's Five Forces Model - Cadbury - Shubham Sharma
  9. 9. Porter's Five Forces Model - Cadbury - Shubham Sharma
  10. 10. • Many businesses are competing against Cadbury and planning to take over the supremacy the company has for several years. • Companies such as Nestle, Hershey’s, Ferrero etc. are Cadbury’s main rivals. • Rivalry will always be strong among these companies because they sell from the same types of stores and their products are similar in some respects. Porter's Five Forces Model - Cadbury - Shubham Sharma
  11. 11. • The entry of competitors will be difficult because there are already well established companies within this market. • These include, mars, nestle, Ferrero, Kraft, Hershey’s and Lindt. • This makes the barrier for entry very hard for another new company to start. • They need high initial capital requirements. Porter's Five Forces Model - Cadbury - Shubham Sharma
  12. 12. • Supermarkets tend to copycat popular chocolates (for example nestle Kit Kat) and provide their own brand on the shelves at a cheaper price. • Confectionary is brought for snacks and gifts. In this way, large no. of substitutes exists, like chips, fruits, beverages, etc. • Still chocolates scores higher than the substitutes as they are easy to preserve. Porter's Five Forces Model - Cadbury - Shubham Sharma
  13. 13. • Cadbury’s buyers are scattered all around the world and they are in billions. • The increasing number of competitors that offers the same type of products at a lower cost might be the cause of customer loyalty alteration. • No switching cost for buyers. Porter's Five Forces Model - Cadbury - Shubham Sharma
  14. 14. • Large number of suppliers. • Cadbury has higher bargaining power than its suppliers. • Cadbury can buy their raw materials for cheaper and more in bulk than a medium sized business could. Porter's Five Forces Model - Cadbury - Shubham Sharma
  15. 15. • Cadbury is a well-established firm with customers spread in whole world. • It is difficult for other firms to overcome its popularity. • Economical distribution using proper supply chain management is necessity. • Brand loyalty should be maintained. Porter's Five Forces Model - Cadbury - Shubham Sharma
  16. 16. Thank You….All And Thank You…. Porter's Five Forces Model - Cadbury - Shubham Sharma

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