Professional Documents
Culture Documents
• Cadbury is one of the British fastest and a rapid growing confectionery company.
• Cadbury consists of 70% market share all over the world. The dairy milk chocolate alone
has accounted for 30% of market.
• Cadbury today is the market leader in the U.K chocolate confectionary market,
employing the most advanced processing technology and management information and
control techniques.
• World - wide Cadbury is one of the pre – eminent names in confectionary with
impressive range of famous brands.
CADBURY BUSINESS MODEL
Cadbury‘s robust business model Cadbury‘s growth potential is underpinned
by its robust business model.
They have strong brands and strong competitive positions in the three major
confectionery categories: chocolate, gum and candy
They have strong leadership positions in nearly half of the world‘s largest
markets.
The confectionery market has been growing around 5% p.a., with revenues
growing in low single digits in developed markets and in double digits in
emerging markets.
SITUATIONAL ANALYSIS
POLITICAL ENVIRONMENT
SOCIO-CULTURAL ENVIRONMENT
TECHNOLOGICAL ENVIRONMENT
ECONOMIC ENVIRONMENT
DEMOGRAPHIC ENVIRONMENT
DISTRIBUTION NETWORK
Cadbury‘s brands are available in over a million outlets across the country covered Australia,
United Kingdom, China and India.
The distribution network directly covers almost the entire urban population.
This level distribution channel is being used by the whole chocolate industry.
Distributors and retailers act as sources of information; they help company in promotion of
their product..
SWOT ANALYSIS
STRENGTHS
• In India it has about 70% of the confectionary market.
• The company has good market reputation.
• The target market is also quite large
WEAKNESS
• There are fears the demand for the product may outdo the capacity of the company to satisfy the demands of the market.
• Banking on the success of the other brands in the market may have negative effects
OPPORTUNITIES
• There company is introducing the brand in a less competitive market. This is unique opportunity for the company.
THREATS
• There is threat of entry of other products in the market
• There is a threat of change of the current external environment
FINDINGS
If Cadbury wants to remain their position in the market, they need to capitalise in economies of
scale.
They could cheaply produce a large quantity of units and yet lowering their costs.
They will be easier to borrow capital at low interest rates, as banks knew that the company was less
of a risk.
Diseconomies of scale will be occurred if Cadbury expands their business too quickly
To remain a major player in the confectionery industry, they need to be effective in the current
market by introducing more new products and react to the alternatives within the market.
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