Thursday, August 22, 2019
Strategy Essay Example | Topics and Well Written Essays - 1000 words - 3
Strategy - Essay Example Porter argues that the ability to perform particular activities and to manage the linkages between these activities is a source of competitive advantage.à The above diagram shows an example of a corporate value chain analysis that can be applied to general manufacturing process of a Cadburyââ¬â¢s product. The analysis can help identify the companyââ¬â¢s core competencies and weakness throughout the manufacturing process and whether competitive advantage is created or lost because of this. Internal Factor analysis summary (IFAS) External factors Analysis Summary (EFAS) Porterââ¬â¢s five forces applied to Cadbury plc Force Strong/Weak Threat to Cadbury Industry/ Competitor/Competitive rivalry Strong There are three main competitors within the confectionery industry, Cadbury , the market leader followed by Mars and Nestle, The competition between the three companies is very strong and each company aims to be the market leader Corporate strategy Chen et al (2009) states that ââ¬Å" Corporate strategy is primarily about the choice of direction for a firm as a whole and the management of its business or product profile. Cadburyââ¬â¢s corporate directional strategy after their success in 2008 is growth. This is one of Cadburyââ¬â¢s main priorities for the future. Working alongside the companyââ¬â¢s business strategy , Cadbury will work towards achieving horizontal growth. This is achieved by Cadbury expanding its products into other geographical locations and/or increasing the range of products and services it offers(Chen et al 2009) Cadbury hope to achieve horizontal growth by focusing on five key brands, Cadbury, Trident, Halls, Green and Blackââ¬â¢s and The Natural Confectionary Company Cadbury are doing this as an action towards achieving their vision as it is believed that these brands have the strongest potential in new and existing markets on a global level A key factor towards Cadbury mentioned throughout the report, is lack of sales a nd revenue generated by Cadbury outside of western Europe. Therefore concentrating on specific brands that are thought to be the most successful on a global scale will help the company launch new products in other countries , hopefully
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