Answered: Required: Create a Competitive Analysis…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Required: Create a Competitive Analysis for Hersheys Company Noted: details in the photo attached

Transcribed Image Text:1 2 4 3 Customer Service 7 8 Competitive Profile Matrix (CPM). 9 Critical Success Factors Advertising Market Penetration 5 6 Employee Dedication Financial Profit Customer loyalty 10 Store Locations Market Share Product Quality 11 Top Management 12 Totals R&D Price Competitiveness Weight 0.09 0.11 0.10 0.07 0.09 0.08 0.07 0.07 0.08 0.07 0.10 0.07 1.00 4 Rating Score Rating Score 3 4 2 3 4 2 3 4 4 2 || HERSHEY 3 0.36 0.33 0.40 0.14 0.27 0.32 0.14 0.21 0.32 0.28 0.20 0.21 3.18 3 4 2 2 3 3 4 3 3 2 2 NESTLE 3 0.27 0.44 0.20 0.14 0.27 0.24 0.28 0.21 0.24 0.14 0.20 0.21 2.84 Rating 3 3 3 4 2 3 4 3 4 4 2 CADBURY 3 The table above shows the critical success factors that make up the CPM are advertising, product quality, price competitiveness, customer loyalty, Market share ect. Hershey possesses competitive advantage in advertising as the advertising expense is increased. Score penetration due to the enlarged product portfolio of Nestle. While Cadbury has a close score with Hershey's in fact has the highest score. 0.27 0.33 The score portrays an aggressive approach adopted by the company in investing resources to its critical success factors which helps it to achieve its long term goals and compete against major players in the industry. 0.30 0.28 0.18 0.24 0.28 0.21 0.32 0.28 0.20 Hershey is a company that makes chocolates and it is recognized worldwide for its services. Yet, Hershey faces stiff competition from other chocolate companies such as Nestle and Cadbury that are some of the biggest rivals in the industry. This Competitive Profile Matrix (CPM) table is an essential tool when it comes to analyzing the company's competitors and its particular strengths and weaknesses. It evaluates a few factors while at same time assessing the rival. 0.21 3.10 Apart from that due to the iconic brand image of the brand it is able to gain a strong position in the market by having an edge in the market share as well. Whereas, Nestle has significant scores in its financial profits and has the highest score in market

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