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SWOT Analysis Applied Business Cadburys Unit

Extracts from this essay...

Introduction

SWOT Analysis: "Situation analysis in which internal strengths and weaknesses of an organisation, and external opportunities and threats faced by it are closely examined to chart a strategy" - (www.businessdictionary.com) S - TRENTHGS W - EAKNESSES O - PPORTUNITIES T - HREATS Each of these factors has an effect on the business either in a good or bad way. In a S.W.O.T analysis a business will analyse the internal strengths and weaknesses of a business as well as its external threats and opportunities it may have in order to evaluate and identify different strategic options of a business. This knowledge can be used to find out what the businesses plan of action should be and what they should do next. I plan to conduct a S.W.O.T analysis on Cadbury as a business evaluating their strengths and weaknesses, opportunities and threats. STRENGTHS * Advertising Cadbury proves to be exceptional at producing effective advertising campaigns. The most memorable one, I believe is the Gorilla campaign. The advert was so simple yet so effective and got the world talking more about Cadbury. Their weekly sales rose by 9% during the time the advert was played.

Middle

Because of the easy access it provides convenience to customers whom are visiting the site. The website shows strong brand awareness with moving images and a deep purple colour scheme. The audience can immediately identify it with Cadbury. The website provides history of the company, recipes and games. The games provide good entertainment as well as enticing players to buy Cadbury products as it is on their brain. * Wide distribution network Having a wide distribution network means their products are distributed to many parts of the country as well as the world as it is a global business. Cadbury have moved one of their Bournville factories to Eastern Europe making it easier to distribute to other countries in part of the continent as well as decreasing distribution costs. * Strong brand image Cadbury has a very strong brand name, which benefits the business, as people prefer buying from popular brands, which they know and trust. Cadburys strong image enables them to be more creative when advertising. Cadbury does not have to spend, as much tine explaining what the advert is for as it is usually instantly recognisable making it easier for the business to get their message across the audience.

Conclusion

This caused a lot of bad press and gave Cadbury's a negative shadow. OPPORTUNITIES * Eastern Europe factory By relocating factories to Eastern Europe, production costs will narrow. It also makes it easier for products to be distributed throughout Eastern Europe, cutting costs of distribution too. Reducing expense costs will allow Cadbury to maxamise their profits, which could be spent elsewhere, for example, expansion. THREATS * Competitors Cadbury's competitors provide a much smaller variety of products. Therefore, Cadbury meets more needs of different target markets and are preferred by many people over their competitors who are less likely to provide for their wants and needs. * Credit crunch Reports have shown that the recession has not affected Cadbury's. However it has affected the business, as it is now much harder for them to borrow money from banks. They are not lending as much money to large businesses due to the threat they are under from the recession. * Obesity With the current raise of concern on the increase of obesity, Cadbury's could start receiving blame as the number one chocolate selling brand. If this happened, Cadbury's will sore from sales and less people may become health conscious and consume less chocolate.

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