Strategic Plan for Real Chocolate Industries Essay

Strategic Plan for literal Chocolate Industries - Essay ExampleAt the moment the company is comfortably placed in toll of overall performance. However, the company has to ensure maintaining levels of profits and growth in the long term, through a schema that result give it a sustainable competitive advantage. The chocolate sedulousness is highly fragmented industry with slightly four hundred companies accounting for 90% sales. Retail chocolate sales reached $16.3 billion for the course of instruction ended December 2006, out of which the Gourmet segment is about $ 1 billion. Real chocolate has about 10% of the market share in this segment. 1) From Porters five force analyses it emerges that Rivalry among existing players willing be the fountainhead competitive force in the industry. The decline in profitability which often is the result of this will come from an increase in promotion and branding cost. 2) Even though the analysis reveals that entry barriers for peeled playe rs to enter are not very high, forward-looking entrants may not find it attractive to enter. origination may occur by players creating a separate niche which may affect demand for the intersection in which Real chocolate operates. (e.g. of artisan chocolate entry which has already happened) 4) Sellers bargaining proponent is not a significant factor in the industry, as there are many producers and raw clobber is a commodity item. Industry incumbents do not have much threat from suppliers, buyers or new substitutes. Similarly, there are no barriers to entry for new players because of suppliers.5) Five forces analysis also reveals that buyers bargaining power is a significant factor. Buyers loyalty has to be constantly maintained through branding, promotion and maintaining quality. Price is not a significant factor in which buyer will switch to other products. On this account, this will be a significant barrier to entry for new entrants, which reiterates point no. 1, that rivalry is the chief force in the industry.