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

1. Porter’s Five Forces
Model
Cadbury
On
By –
Shubham Sharma
Porter's Five Forces Model -
Cadbury - Shubham Sharma

2. Porter's Five Forces Model -
Cadbury - Shubham Sharma

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. • 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. • 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. "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. Porter's Five Forces Model -
Cadbury - Shubham Sharma

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. Porter's Five Forces Model -
Cadbury - Shubham Sharma

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. • 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. • 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. • 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. • 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. • 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. Thank You….All
And Thank You….
Porter's Five Forces Model -
Cadbury - Shubham Sharma