...the premium chocolate industry? Which of the five competitive forces is strongest? Which is weakest? What competitive forces seem to have the greatest effect on industry attractiveness and the potential profitability of new entrants? In the industry there is great pressure on the overall performance because there is increasing competition from rivals and threats of new competitors, we can say that the premium chocolate industry is having an intense competition with strong growth potential. Roger Chocolates has been known to have high brand recognition and quality in their products, thereby gaining customer loyalty and sales success. The rivalry between competitors and the threat of new entrants consider stronger force, since the chocolate market is growing annually. The intensity of rivalry among competitors in an industry can create price wars, advertising battles, new product lines, and higher quality of customer service Premium Chocolate competition in Canada involves strong regional brands and few global players such as Godiva, Lindt, Callebaut, and Purdy’s. The force weaker than Rogers has the bargaining power of buyers and suppliers, but also think that the threat of substitute products given a weak point. The first as customers who prefer this brand of chocolates, they differ by a time luxury look and unique experience, Rogers still has managed to bring out the distinction in the niche market with a good strategy and good differentiation. Rogers’s chocolate 50% of sales...
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...Rogers’ Chocolates Word Count: 1232 Table of Content Key Issue 3 Subsidiary Issues 3 External Analysis 3 Internal Analysis 3-4 Business-Level Strategy 4 Corporate-Level Strategy 4 Firm Performance 4-5 Recommendations 5 References 6 Appendices 7 Key Issue: In Victoria, British Columbia, Rogers’ Chocolates was established in 1885 by Charles “Candy” Rogers. Rogers’s chocolate is one of the biggest chocolate producers in Canada and the second largest in British Columbia. In proceeding Rogers’ death, Leah Rogers, his wife, took over the company and later sold it to a customer in the late 1920s. Management’s main focus is to explore alternatives to grow the firm without impairing its heritage. Subsidiary Issues: Competitors are attaining competitive advantage by producing low quality products. Others are marketing with less expensive ingredients, packaged in similar attractive containers, and priced identically with Rogers’ premium chocolate products. Rogers’ chocolates are only attracting niche customers, such as wealthy individuals, elderly, and married couples with no children. Currently, management has no direct measurement of day-to-day production creating inventory difficulties. External Analysis: Un-intergraded international production laws and regulations are an issue. Chocolate companies are looking to the USFDA to redefine chocolate. More...
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...or tripling the size of Rogers’ within 10 years By Devising a strategy that would fit Rogers’ culture and would be supported by the board, the management and the employees. Protagonist Steve Parkhill A highly motivated and results oriented self-starter; an experienced president with high degree of credibility and objective insight; an exceptional leader with an empowering style and significant personal integrity. The contract would lasted for over 10 years. Parkhill should purchase a significant number of shares in Rogers’ each year for the first 3 years with an option to increase his holding further afterwards. Market The growth of Canadian premium market Canadian Premium chocolate market was growing at 20% annually due to the large demands from baby boomers (people who grew up during the 1960s and 1970s) Margins Much higher compare with margins in lower quality chocolates. Seasonality 8 weeks before Christmas. The sales occurred in that period contributed 25% of the annual sales amount. Core products and seasonal items were required for the fall and Christmas High valuable customers Established families, middle aged childless couples and empty nesters with high incomes. Their preferences are quality and the brand of chocolates. Trend of consumption Healthy diets (organic foods, trans fat free, dark chocolate) Competitors of Rogers’ Godiva Godiva offered chocolates of lower quality at prices that are much higher than Rogers’ (15% on average, 200-300%...
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...Rogers’ Chocolates Front-Burner Issues Rogers’ Chocolates has grown sales by more than 900 percent in the last two decades. While this growth is phenomenal and desirable, it is much like the physical growth of a teenager. In parts it is disproportionate and awkward, relying on time for the entire body to grow into itself and for coordination to catch-up such that the body can be used to its full capability. It is in this awkward stage that Rogers’ now finds itself. Therefore, it’s time that Rogers’ spend the requisite time and energy to marshal resources appropriately to address its awkward attributes. Rogers’ problems and their related solutions fall into the category of principal components of the strategy execution process as it relates to implementation. In order to build the desired competencies, capabilities, and internal resources needed for strategic success, Rogers’ must be willing to allocate the necessary financial support to engender the following changes. It will be expensive. But the goal of doubling or tripling the size of the company is by its very nature is an expensive endeavor. The question is whether the board and senior executives, namely Parkhill himself, are willing the sacrifice the financial resources in order to achieve such growth. It falls to Parkhill himself to sell this dynamic growth package, its related company changes to strategy, production and brand, and finally to garner support of the board, other senior executives, and the employee...
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...Rogers’ Chocolates 1. Using Porter’s characteristics, describe the interfirm rivalry in the chocolate industry. What are the strengths/weaknesses of Rogers’ Chocolates’ major competitors? Rivalry within the premium chocolate industry was still not as fierce as in the traditional chocolate market. After all, it was a fairly new market that had been growing at a rate of 20% per year. In addition, because of the fact that customers were demanding premium products, they were likely to be loyal to a particular brand meeting their expectations. Rogers Main competitors were: Godiva, Bernard Callebaut and Lindt. All of them offered what could be considered substitutes. Godiva for instance, offered Chocolates of similar quality, with slick and modern packaging, variation in chocolate moldings and chocolate colors. Bernard Callebaut was very strong in quality, superior packaging and product customization and Lindt offered similar quality chocolates at lower prices. Competitors like Godiva, Bernard Callebaut and Lind also had brand recognition and were large enough to achieve economies of scale, reduce costs and most important work on the development of relationships with suppliers of premium raw materials. 2. What are the firm’s core competencies? How might Rogers’ Chocolates convert some of Its existing resources and capabilities into core competencies? Rogers’s core competencies were product quality and customer service. In addition, the workforce was loyal and...
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...Rogers currently earned revenues in four major areas retailing chocolate products through company - owned stores, wholesailing chocolate products and sales from Sam's Deli, a well-known eatery in Victoria, which Rogers had purchased in 2004. Retail. Approximately 50 per cent of the company's sales came from Rogers 11 retail stores.The stores featured Rogers many products displayed attractively in glass cases, merchandised to suit the season, with an overall Victorian theme.Rogers flagship store on Government Street had been designated a Heritage Site by parks Canada.Uniformed sales staff offered chocolate samples to customers, and the aromas and images in the store contributed to an excellent retail experience.In 2000, Rogers had won the Retail Council of Canada's innovative Retailer of the year award in the small business category, for demonstrating '' outstanding market leadership and innovative approaches to customer and employee relations.Through creative ideas and strong delivery, the winning retailer has taken their brand to the top of their class.'' Each of Rogers retail stores, other than the factory store itself , was located in a tourist area, such as Whistler, Granville Island and Gastown , or at BC Ferry locations. Each store was wholly owned by Rogers.Most were leased, with a minimum of a 10 year lease.The factory store and downtown Victoria store were owned. The stores were typically about 500 square feet size, with the exception of the ferry terminal locations...
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...In order to double or triple Roger’s Chocolates revenues in the next decade, the following strategic actions must be taken: More effectively utilize the company’s Website and the vast reach of the Internet to expand customer base. Current Internet sales represent only four percent of total sales. The Internet can create the largest increase in sales with the least amount of fixed costs all with tremendous contribution margin. The upcoming Olympic Games present an opportunity for Roger’s Chocolates (RC) to showcase itself as a uniquely Canadian treat to the people arriving from all over the world. The reach of the World Wide Web allows RC to stay accessible to the tourists even as they go back home. The only negative to focusing so heavily on Web sales is the high cost of shipping. However, negotiation and partnering with shippers can create discounted shipping rates. Increase the wholesale business of Roger’s Chocolates Margins have remained strong for RC. With these strong margins RC can afford to use two level distribution to further create demand without the costly expense of additional store fronts. While RC’s brand recognition is strong within the Victoria area, by utilizing distribution methods other than direct retail, RC can increase brand awareness outside the local geographic area. The main detractor of increased wholesale sales is the degradation in margin due to added channels of distribution. Nevertheless, increased revenue by expanded distribution...
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...Among the ten generally accepted auditing standards is the standard that requires an auditor to have independence in mental attitude. As with so many rules and guidelines set forth by the government and numerous other organizations, the interpretations of many of these rules can be vastly subjective. During the case against Health Management’s founder Clifford Hotte, his co conspirators and the auditors at BDO Seidman the defendant’s attorney Michael Young brought forth the idea that according to the generally accepted auditing standards that requires an independence of mental attitude it never formally states that a friendship between an auditor and the client is be completely prohibited. The dilemma with deciphering the interpretation of the standard is determining where the line should be drawn between these relationships and the auditor’s ability to maintain these relationships and the independence considered necessary to give an unbiased opinion when it comes time to write a report that is unprejudiced and reliable to the public and investors at large. Let us begin with Health Management’s CEO Clifford Hotte and CFO Drew Bergman’s 1995 inventory fraud scandal by which author Michael C. Knapp’s assertion could be considered as one of the least ingenious corporate fraud scams to date. The objective was to increase inventory as well as make minor adjustments to a small number of other accounts in order to reach the companies target earnings as reported by analysts previously...
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...RODGERS’ CHOCOLATES – A Case Analysis It was March 2007, Steve Parkhill- the newly appointed President at Rogers’ Chocolates is provided with a challenge to double or even triple the size of the company in the coming 10 years. Rogers’ Chocolates – a privately held company has seen about nine fold growth in the last two decades, it is the Canada’s oldest premium chocolate based in Victoria, British Columbia (BC). Parkhill has to devise a Company Strategy which can achieve a growth rate of 7.2% to more than 10% per annum (see Exhibit I). Potential Opportunities Rogers’ core competence is the specialization in a wide variety of premium chocolates targeted towards affluent customers looking for a luxury experience with a superior taste, or an elegant, prestigious and uncommon gift item. It is positioned in between Godiva and Bernard Callebaut in terms of price and quality (see Exhibit II). In 2006, the Canadian premium chocolate market was growing at 20% annually. The coming Olympic to Vancouver and Whistler in 2010, is another growth opportunity. Moreover, the strong market presence in the western part of Canada and the brand image provides a promising opportunity to tap the corporate gift market for it would fetch stronger margins than wholesale. External and Internal Problems The steady chocolate industry has no room for complacency; the market demand is more cyclical and the current trend is for natural products produced in socially responsible facilities. The business...
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...Administración Estratégica Caso: Rogers´ Chocolates Aspectos relevantes sobre el caso Rogers´ Chocolates: Introducción En marzo del 2007, Steve Parkhill iniciaba como Presidente de la compañía Rogers’ Chocolates. La junta de Consejo le había pedido doblar o triplicar el tamaño de la empresa en 10 años. Cada miembro del Consejo y del equipo de gestión tenía una opinión diferente de cómo lograrlo; por lo que Parkhill requería diseñar una estrategia compatible con la cultura de la empresa, para obtener el apoyo del Consejo, la gerencia y los empleados. El mercado de chocolate premium * La tasa de crecimiento de la industria del chocolate en general venia disminuyendo, sin embargo, los fabricantes tradicionales como Hershey y Cadburys se movían hacia el mercado de chocolates premium a través de adquisiciones o alianzas. * En 2006, el mercado de chocolates en Canadá era de 167 millones de dólares y proyectaba crecer 2% cada año. * El mercado de chocolates premium crecía 20% al año, impulsado el envejecimiento de los "baby boomers". * Las ventas en octubre (previas a Navidad) representaban el 25% de las ventas anuales. * 20% de los clientes compraban el 54% de las ventas en 2006. * El margen de utilidad en los chocolates premium era mejor que los chocolates de menor calidad. * Crecía la demanda de chocolates orgánicos y libres de grasas transgénicas. * El chocolate negro incrementaba su demanda debido a sus propiedades antioxidantes...
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...AB Science: Présentation : AB Science est une société pharmaceutique cotée à la bourse de Paris depuis le 21 Avril 2010. Fondée en 2001 par un groupe de chercheurs, d’entrepreneurs et de cliniciens AB Science ce caractérise aujourd’hui comme la seule société pharmaceutique indépendante, aux cotés des grands groupes du secteur (Novartis, Sanofi,), capable d’accompagner le processus de développement d’un médicament de sa création à sa commercialisation. C’est dans cette dernière phrase que la politique entrepreneuriale d’Ab Science prend tout son sens et en résulte donc l’ensemble des choix stratégiques de l’entreprise. Car en devenant un laboratoire pharmaceutique intégré, de la phase de développement de la molécule jusqu'à l’autorisation de mise sur la marche AB Science souhaite ainsi pouvoir conserver l’ensemble de son résultat d’exploitation. Ce processus dit de « développement intégré » repose sur différents éléments clés. Tout d’abord une société ou des managers, des scientifiques et des financiers mettent leurs compétences en commun afin de répondre aux exigences du marché. Ensuite et au-delà du contrôle exercé sur le développement de ses produits AB Science exerce un contrôle permanent sur le processus de production à travers le recours à des sous-traitants, réduisant ainsi les besoins de financement qui en résulte ( du processus de production) tout en en préservant une grande partie de la marge sur les revenus. A cela s’ajoute le déploiement des...
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...Roger’s Chocolates SWOT II. SWOT Analysis • Employee Interest and Devotion to Company ◦ Some of Rogers Chocolate Employees were third generation employees and were proud and passionate about Rogers heritage and commitment to quality. They believed in the Brand and its image. • Leadership with Experience ◦ Parkhill who had previously worked as the VP for Maple Leaf Foods was in charge of six plants and 2,300 employees. Has a Ivy League MBA and has extensive work in Sales, Marketing and Operations. • Progressive Management Team ◦ Management consists of members who will work extra hours and are very efficient in their respective fields. Phoenix has had a tenure since 1994 and is very dedicated to Rogers by working extra hours and helping out at stores that are short of staff. Wong works with manufacturing and Food Science and had worked in the industry before Rogers. Bjornson worked with Pacific Coach Lines as the CFO and worked their finances especially in the areas of reorganization, acquisitions and dispositions. 3. Consumer Loyalty • Customers are loyal to Rogers because they have an emotional connection that relates them to Rogers. This revolves around the II. SWOT Analysis experience that Rogers tries to promote, especially in their gift line. 4. Social Awareness • Part of the workforce at Rogers is comprised of disabled individuals who help out in production. 5. Revenues and Margins • Margins...
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...1.0 Competition in premium chocolate industry The competition in the premium chocolate industry can be explained by applying the Porters 5 forces model. This model, named after Michael Porter (1979), can be looked upon as a framework to analyze and structure an industry. It is a theoretical tool to elaborate the potential threats but also the chances of a particular industry. Porter mentions five forces that have an impact on an industry; suppliers, buyers, potential entrant, substitutes and the rivalry among existing firms. (Production of Analysis, viewed 11th June, 2010) The Porters 5 forces model for Chocolates premium industry Bargaining power of suppliers In production of premium chocolate the primary raw material is cocoa bean, secondary sugar, and milk. Concerning sugar and milk, there are numerous suppliers of these materials available around the world; there is no concentration, neither a necessary differentiation. Manufacturers can use financial techniques such as hedging in order to reduce the impact of price rises on their own margins. In addition to the fact that according to CAOBISCO, there are 4.5 million of cocoa farms around the world, to whom the chocolate manufactures are an extremely important customer, the bargaining power of the chocolate premium industry suppliers is generally low (CAOBISCO, 2009). ). However since the fine grade cocoa production represents a small part of the world’s supply, the bargaining...
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...CADBURY-GLOBAL FACE As we have seen Cadbury is a leading global confectionery company with an outstanding portfolio of chocolate, gum and candy brands. Cadbury employs around 50,000 people and have direct operations in over 60 countries, selling their products in almost every country around the world. Cadbury’s Global Journey In 1824 John Cadbury opened his shop on Birmingham's exclusive Bull Street and served tea, coffee, and, fatefully, cocoa and drinking chocolate. In 1854 the Cadburys open a London office and receive a Royal Warrant as manufacturers of chocolate and cocoa to Queen Victoria. In 1921 cadbury opened its first overseas factory in Tasmania, Australia. In 1969 Cadbury merged with Schweppes (an Australian based drink company). In 2003, the humble Birmingham chocolate becomes the world's number one confectionery company with the acquisition of US chewing gum giant Adams. In 2008, Cadbury launched the Cadbury Cocoa Partnership. £45 million was put aside to put into cocoa farms in Ghana, India, Indonesia and the Caribbean over a decade. In 2010, Cadbury was bought by American food behemoth Kraft Foods in an £11.5bn deal. In 2012, a new global research and devlopment centre opened in Bourneville as part of a £17 million investment in R&D in the UK. CADBURY WORLDWIDE Cadbury enjoys a value market share of over 70% - the highest Cadbury brand share in the world. Cadbury is the largest confectionary company in the world and has its presence in Beverages in Australia...
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...Cadbury is a chocolate confectionary market that was started in 1824 by John Cadbury in Birmingham. He started with a shop selling coffee, tea, drinking chocolate and cocoa. This was started because he believed that alcohol was the main cause of poverty in the society. Therefore he thought chocolate drinks could be an alternative for alcohol. John was already selling 11 kinds of cocoa and 16 kinds of chocolate drinks by 1842. Benjamin, John’s brother also joined him in his company to form Cadbury Brothers of Birmingham. From there, their sons George and Richard carried out the business, expanding it and making lots of profits. The business was run by many generations till now by the Cadbury family. Now Roger Cadbury runs Cadbury since 1996.Currently Cadbury has operations in more than 50 countries around the world, including the United Kingdom, Ireland, Unites States, Australia, New Zealand and India. Cadbury has also involved itself in commitments such as the Cocoa sourcing commitments, Environmental commitments and The Cadbury Foundation. In 1905, Cadbury launched its Dairy Milk bar, with a higher proportion of milk than previous chocolate bars, and it became the company's best selling product by 1913. Fruit and Nut was introduced as part of the Dairy Milk line in 1928, soon followed by Whole Nut in 1933. By this point, Cadbury was the brand leader in the United Kingdom. Several other products accompanied these: Flake, Cream-filled eggs, Crunchie and Roses. Cadbury's Milk...
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