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Table 1.

CADBURY SWOT MATRIX


STRENGTHS WEAKNESSES
1. Adaptive manufacturing process 1. Few product recalls
2. Competent and highly-skilled 2. Highly dependent on confectionary
workers as its main product offering
3. Diversified product range 3. Low product quality control
4. High customer loyalty 4. Slow R&D to market process
5. Low employee turnover 5. Some unethical practices involving
6. Open to change company culture its management
7. Premium and quality brand
8. Strong brand icon
9. Strong distribution networks
10. Strong parent company
11. Successful marketing and
advertising campaigns
OPPORTUNITIES THREATS
1. Better product packaging 1. Aggressive pricing and promotional
2. Develop non-chocolate product activities of competitors
line 2. Changes in consumer preferences
3. Develop novelty or specialty 3. Increasing concerns on obesity
markets and overall health
4. Franchising 4. Increasing costs of production
5. Increase global share due to 5. Inflation
emerging markets 6. Possible tax increase for high
6. Move production to countries with sugar and high fat products
cheaper labor costs 7. Substitutability
7. Penetrate untapped local markets 8. Threat to new entrants
(ex: rural areas)
8. Sugar-free products
9. Sustainability opportunities

SWOT Analysis (or Internal-External Analysis) is a tool developed by Albert


Humphrey in the 1960s which is as useful now as it was then. SWOT is an acronym for
Strengths, Weaknesses, Opportunities, and Threats. It is a comprehensive audit and
competitive analysis to help management understand the firms environment from both
internal and external point of view. Also, with a little thought, it can help you discover
opportunities and manage or eliminate threats which will highly benefit the firm especially
in the long-run.
Figure 1 shows Cadburys SWOT Matrix (or IE Matrix). The upper part of the SWOT
Matrix shows both the positive (strengths) and negative (weaknesses) internal factors
while the lower part shows both the positive and negative external factors surrounding
the firm, namely opportunities and threats respectively.
Adaptive manufacturing process is one of Cadburys strength. It helps the firm
adapt and meet changing consumer tastes and demand. In addition, R&D to market
process is one of the areas that the firm must address immediately because it takes 24
to 36 months to bring innovations developed in research and development (R&D) to the
market.
Some opportunities that are available to the firm to exploit are untapped local and
emerging global markets which can help the firm increase its profitability and global
share. But despite these opportunities, there are also threats that may hinder the
company to maintain its current market position and attain its short and long-term goals.
It includes the increasing concern of consumers on obesity and overall health and the
increasing costs of raw materials, fuel, transport, and packaging which may force Cadbury
to increase the unit price for its products.
All in all, using analytical tools like the SWOT Analysis would help the corporation
create strategies that will help distinguish them from their competitors, so that they may
achieve competitive advantage in the market.

REFERENCES
Ltd, A. A. (n.d.). Cadbury SWOT Analysis. Retrieved October 18, 2017, from
https://businessteacher.org.uk/swot/cadbury.php
Morrison, P. (n.d.). Harvard Business Case Cadbury & Schweppes. Retrieved October
18, 2017, from https://www.scribd.com/doc/119831599/Harvard-business-case-
cadbury-schweppes
SWOT Analysis and Report for Cadbury Schweppes. (n.d.). Retrieved October 18, 2017,
from https://www.scribd.com/document/30899187/SWOT-Analysis-and-Report-
for-Cadbury-Schweppes
Z. (n.d.). Cadbury SWOT Analysis | USP & Competitors | Brand Guide. Retrieved
October 18, 2017, from http://www.mbaskool.com/brandguide/food-and-
beverages/3350-cadbury.html
Z. (n.d.). Cadbury's Dairy Milk SWOT Analysis | USP & Competitors | Brand Guide.
Retrieved October 18, 2017, from http://www.mbaskool.com/brandguide/food-
and-beverages/430-cadburys-dairy-milk.html

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