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    Hershey'S QSPM Matrix: Strategies 1 Key Internal Factors Weights AS Strengths

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    Sofia
    Hershey's has a 44.1% market share in the US chocolate market and annual sales of $7.5 billion. However, it faces threats from competitors like Nestle and Mars that are larger and have broader product portfolios. It also relies heavily on the US market for 86% of its sales. To address weaknesses and opportunities, Hershey's three top strategies are to 1) expand into new international markets like China and India to reduce costs and diversify, 2) acquire companies to broaden its product portfolio, and 3) increase marketing and R&D spending to boost brand awareness and develop healthier options.

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    Hershey'S QSPM Matrix: Strategies 1 Key Internal Factors Weights AS Strengths

    Uploaded by

    Sofia
    231 views7 pages
    Hershey's has a 44.1% market share in the US chocolate market and annual sales of $7.5 billion. However, it faces threats from competitors like Nestle and Mars that are larger and have broader product portfolios. It also relies heavily on the US market for 86% of its sales. To address weaknesses and opportunities, Hershey's three top strategies are to 1) expand into new international markets like China and India to reduce costs and diversify, 2) acquire companies to broaden its product portfolio, and 3) increase marketing and R&D spending to boost brand awareness and develop healthier options.

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    QSPM Of Hershey's.xlsx

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    Hershey's has a 44.1% market share in the US chocolate market and annual sales of $7.5 billion. However, it faces threats from competitors like Nestle and Mars that are larger and have broader product portfolios. It also relies heavily on the US market for 86% of its sales. To address weaknesses and opportunities, Hershey's three top strategies are to 1) expand into new international markets like China and India to reduce costs and diversify, 2) acquire companies to broaden its product portfolio, and 3) increase marketing and R&D spending to boost brand awareness and develop healthier options.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    231 views7 pages

    Hershey'S QSPM Matrix: Strategies 1 Key Internal Factors Weights AS Strengths

    Uploaded by

    Sofia
    Hershey's has a 44.1% market share in the US chocolate market and annual sales of $7.5 billion. However, it faces threats from competitors like Nestle and Mars that are larger and have broader product portfolios. It also relies heavily on the US market for 86% of its sales. To address weaknesses and opportunities, Hershey's three top strategies are to 1) expand into new international markets like China and India to reduce costs and diversify, 2) acquire companies to broaden its product portfolio, and 3) increase marketing and R&D spending to boost brand awareness and develop healthier options.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 7

    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.

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