HERSHEY'S QSPM MATRIX

Strate
1
Key Internal Factors Weights AS
STRENGTHS

1. Hershey's has 44,1% market share in USA's chocolate manufacturers

industry. 0,08 -
2. Hershey's has billion dollar sales every year. For instance, Hershey's has a
huge 7.5 billion dollars per year. 0,02 2
3. Hershey's has a brand evaluation at $7 billion, getting to be ranked as the
94th most value brands worldwide. 0,005 3
4. Hershey's stands 249 on the highest regarded companies list of Forbes. It
is also 269th in the world for the best employers. 0,06 3

5. Hershey has a joint venture with ChefJet, a 3D system that prints

chocolate. 0,04 -
6. Hershey's has successfully integrated number of technology companies
to streamline its operations and to build a reliable supply chain. 0,07 2
7. Hershey International division (one of the main Hershey's divisions),
exports the firm’s products to over 90 countries. 0,02 1
8. In 2015 Hershey acquired KRAVE Pure Foods Inc., for $300 million. 0,1 4
9. Hershey's offers a wide portfolio of products for being a chocolate
manufacturer, it is present with more than 50 products, this means that
customer can find any kind of chocolate that they crave.
0,1 -
10. Hershey's brand equity is fundamental for company, for that reason,
they spend around 520 million dollars a year on advertising and marketing.
0,005 4
WEAKNESSES
1. The Hershey's segment is such that there are many small and regional
players thereby cutting the market share in different regions. 0,06 2
2. The Hershey economic environment in China, Brazil and Mexico are the
primary source of concern, because, contributed to lower earnings and
sales. 0,04 1

3. The Hershey Co's Long-Term Debt & Capital Lease Obligation for the
quarter that ended in Dec. 2019 was $3,715 Mil compare with the last year
that was $3,254 Mil 0,01 -
4. Hershey’s does not use fair trade practices for purchase of Cacao as
expected from such a top company.
0,1 -
5. Hershey’s is easy to duplicate and this is the problem being faced in
developing nations where counterfeit Hershey’s is found.
0,09 -
6. Hershey's layoffs in order to cut costs. The company reducing its
workforce by 15%, which comes to more than 2,000 jobs.
0,03 1

7. Hershey's has an increased geographic coverage that create a negative

impact, because is leading to dilution and lesser authority. 0,08 -
8. Hershey's has an advertisement expenses increase by 46%. 0,02 1
9. The Hershey's sales has been affected by the online sales. The 25% of shoppers
who buy items online to pick up in store have cut back on impulse chocolate
purchases that are typically located at the checkout aisle.
0,05 -
10. Hershey's has a high dependency of United States market 86%.
0,02 4
Subtotal 1.00
Key External Factors
OPPORTUNITIES

1.     Various untapped countries like China, Malasya, Vietnam, India,

Indonesia and Thailand can offer better opportunities for Company, as
reduce the cost of the production. 0,06 4

2.     Chocolate sales in the U. S. have increased about 3 percent annually. 0,04 -
3.     The U.S. meat snacks industry is estimated that is growing at a double-
digit rate. 0,04 4

4.     Increase in Internet users: 51 percent of people in the world already

have access to the Internet, the time that users spend on the “smartphone”
has exceeded that dedicated to television, being 226 minutes a day. 0,04 -
5. There has been an increase in average household income along with
an increase in consumer spending following the recession. The family
income has a 5.2% anual. 0,02 4

6.     The population has been growing and is expected to grow at a positive
rate for the upcoming years. In 2019, the average fertility remains above
2.1
7. births per woman
The decrease during
in the costits
of lifetime.
gasoline in the United States, which fell 0,02 4
3.6%. 0,03 3
8.     Consumers within the industry are becoming more conscious of
health. 0,05 4

9. The company products cocoa in new areas (i.e. India). 0,03 -

10. To eliminate child labor laws for African countries, Hershey involved
International Cocoa Initiative Foundation. 0,02 -
THREATS
1.     Rival Nestle, has removed all artificial flavoring and FDA-certified
coloring from chocolate candy, which affects more than 250 products and
10 brands. 0,1 2

2.     Mars dominates the non-chocolate candy industry. Annual revenue for
Mars increased 50%. 0,05 -
3.     Former NBA player, Yao Ming is campaigning for healthier living within
China. 0,02 4

4.     Nestle is 10 times larger than Hershey. 0,06 -

5.     Cocoa in recent years has been trading at its lowest level in almost a
decade and its value has been reduced by more than 40% since the
summer of last year. 0,05 -
6.     The bargaining power of suppliers has increased over the years with
the decrease in the number of suppliers. 0,05 -
7. Nestle and Mars have different divisions such as beverages, drinks. 0,06 -
8.Natural disasters (i.e. hurricanes) are disrupting growth of chocolate
ingredients. 0,06 -
9. Hershey ‘s product demand decrease because_x000D_
of increasing diabetes. 0,1 4
10. Increase cost of manufacturing technology process because of always
improving of technology. 0,1 4
Subtotal 1.00
TOTAL 2.00
 Strategies
1 2 3
TAS AS TAS AS TAS

- -
0.04 3 0.06 1 0.02

0.015 2 0.01 4 0.02

0.18 2 0.12 4 0.24

- -
0.14 4 0.28 3 0.21

0.02 3 0.06 2 0.04

0.4 2 0.2 3 0.3

- -
0.02 2 0.01 3 0.015
 0.12 4 0.24 3 0.18

0.04 3 0.12 2 0.08

- -
- -
- -
0.03 3 0.09 2 0.06

- -
0.02 3 0.06 2 0.04

- -
0.08 2 0.04 3 0.06
1.025 1.25 1.205

0.24 2 0.12 3 0.18

- -
0.16 3 0.12 2 0.08

- -
0.08 3 0.06 2 0.04

0.08 3 0.06 2 0.04

0.09 1 0.03 2 0.06
 0.2 2 0.1 3 0.15

- -
- -
0.2 4 0.4 3 0.3

- -
0.08 1 0.02 3 0.06

- -

- -
- -
- -
- -
0.4 2 0.2 3 0.3

0.4 1 0.1 2 0.2

1.93 1.21 1.41
2.955 2.46 2.615
Strategies
1. Exploring the market for healthy products with Pure foods, Hershey's could
start selling cereal bars, natural proteins, granola, healthy chocolate
milkshakes, etc.

2. Hershsey's should use integration with technology companies not only for
the supply chain, but also for research and data collection that allows them to
design a new chocolate formula that does not have high levels of fats, sugars,
dye; and that contains natural products. However, this formula should provide
the same attractiveness in taste that Hershey's consumers like so much.

3. Hershey should develop a new line or product, of more natural sweets,

without dyes or flavorings, add them to your portfolio thus replacing sweets
with lower income, thus concentrating the promotion on your new product,
with the possibility of achieving victory in a new market in which competition
begins to be seen, dominating the market and removing the promotion of
products in which it is not seen to be effective.