Cadburys Swot and Pestle

1329 Words Mar 13th, 2011 6 Pages
SWOT analysis

Strengths

Cadbury has a strong manufacturing competence, established brand name and a leader in innovation. People trust the company and support the brand.

Cadbury’s is fully focused on chocolate, candy, and chewing gum, with a unique understanding of consumer in the segments. This allow Cadburys to be able to put all efforts and resources into just this area, concentrating all R&D and marketing here and not using money in other areas.

Ability to respond to the market needs, so can adapt products to sell better

Strong ethical approach, social responsibility is seen as strong giving the company positive brand recognition.

Cadburys have growth in emerging markets, like India. Cadburys understands the markets
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Environmental issues – carbon footprint. Cadbury need to look like they are caring about the environment.

Kraft taking over Cadbury could mean that it loses its British market as it is a US company and may lose its appeal.

Other companies, like Fry and Rowntree, started making pure products to compete with Cadbury’s making it no longer a pull for Cadbury’s advertising campaigns. With Cadbury’s products being expensive in 1970’s people didn’t want to switch from the cheaper options.

PESTLE

Political

Obesity – the government promoting healthy eating, therefore public not buying confectionary.

Job losses – it was promised no job losses in the first 6 months, six days later the Somerdale plant closed. This will make employees become disgruntled and damage the relations that Cadbury’s built up with them for many years.

Foreign takeover – was a hostile take-over so looking at new laws and rules tightened. Taken for less than what the company was worth – 19th June 2010 (£11.9 billion – borrowing £7 billion from British banks)

Taxes increasing – consumers with less deposable income and sales of stock decrease. Also tax rising on the product, transport (fuel), production (materials) etc.

Economic

UK pound de-valued so company was bought for less than what it was worth.

Kraft borrowed £7million from a British Bank to take-over Cadburys.

Job losses in the UK – plants closed in Spain, Turkey and the UK. Opened
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