Case Study On GBL

The premium chocolate industry is a large market in the United States and continues to grow around 10% annually. It is also populated with very strong

While Europe and the United States account for most chocolate consumption, the confection is growing in popularity in Asia and market forecasts are optimistic about the prospects in China and India (Nieburg, 2013, para 9). According to the CNN Freedom Project, the chocolate industry rakes in $83 billion a year, surpassing the Gross Domestic Product of over a hundred nations (“Who consumes the most chocolate,” 2012, para 3).

Investopedia.com states, “free trade is the economic policy of not discriminating against imports from and exports to foreign jurisdictions. (Buyers and sellers from separate economies may voluntarily trade without the domestic government applying tariffs, quotas, subsidies or prohibitions on their goods or services.)” In the previous decade, one of the many controversial subjects in the Canadian economy included whether or not it was beneficial for our federal government to eradicate free trade or open it up to other nations. During my research, I discovered that free trade agreements between Canada and other nations were not as beneficial as they may have seemed for they were often business and market oriented.

The premium chocolate industry is having an intensive competition in Canada with the strong growth potential. Industry growth opportunity imposes increasing competition from rivals and threats of new entrance that adds pressure on overall profitability. Even though Roger’s has been able to establish its place in the chocolate industry with its strong brand recognition and products’ quality, it still needs to be on top of ever- going market changes, by continuously

The profits have increased for the company with the custom line accounting for 60% of volume and 75% of dollar sales according to this case study. The standard line has seen a continued increase in sales as well. What comes with the increased profit due to the increased manufacturing is the need to put higher amounts of capital into storing the higher inventory. With the company being at capacity, the lead times may not be meeting consumer demands either. The expansion that is needed would initially cost Chad’s Creative Concepts greatly. Without some type of expansion (which would most likely require a new plant), soaring inventory costs will need to be attended to.

The growth rate in the chocolate industry is falling, which makes the threat of new entrants low. However, the traditional manufacturers are moving toward premium chocolate in an effort to maintain significant profit margins. This makes a moderate threat of entrants. They are doing this through market acquisitions or up marketing. There is also a greater profit margin in case of premium chocolate which makes it a more attractive tactic for the new entrants.

The premium chocolate market has been growing at 20% annually, showing that buyers are willing to pay more for a better tasting and better quality chocolate. The declining growth of the overall chocolate market and rapid growth of the premium chocolate market is positive for current producers of premium chocolates in that the decline

Rivalry: The market is very competitive and the threat of competition is high. Many companies are present and they are more successful than Brita. It seems to appear a rivalry both in terms of product and location

Britain really is a nation of chocolate lovers. Among the whole world, UK has the seventh highest consumption of chocolate. A British eats an average 17.49lbs of chocolate per year (The World Atlas of Chocolate, 2011). Switzerland takes the top spot. In Britain, an estimated 660,900 tones of chocolate are eaten per year which is an average of 11kg per person. The UK chocolate industry is worth £3.6billion and sales of chocolate just keep growing and growing. The chocolate industry is a fast growing industry in UK, and the competition among the main brands is getting more and fiercer. For the investors, it is important to know the market share and the share price information of a company. These

The chocolate market was highly competitive, and the key competitors could be classified into 2 types. First, the large, mass-market domestic chocolate producers, this segment was dominated by popular manufacturing companies such as Hershey, Mars, and Nestle. They produced less flavourful and mass-market chocolate. Second segment, the smaller, but high-end domestic and European chocolate producers.

High raw material costs, less sales and a weak Canadian dollar are the main reasons of Company’s problems. They tried to put a price increase in order to improve results, but, as the analysis above show, that did not go well.

Economic factors – Our current economy is not quite stable. It stagnating for now, but it will take years to completely recover from big economic crisis. Unemployment rate is very high. Our biggest problem are exchange rates that started to vary insanely. Because of that we became too expensive for some countries and we starting to lose our customers from there, but in the same way we became affordable for others so we must quickly adjust to their needs and demands.

Based on the interview with Mr Benjamin Chew, Simply Chocolate Sdn.Bhd being the one of the first specialty handmade chocolate producers in Sabah. As mentioned by Mr Benjamin, Simply Chocolate Sdn Bhd produces approximately 2 tons of handmade chocolate per month and most of which are marketed through those outlets in Kota Kinabalu .As a owner of the company, Mr Benjamin believes in teamwork and innovation as the essential factor to continue success in the market. Therefore, he will conduct weekly meeting with their employees to ensure all the department’s operation going smooth. Also, he will allocate time to work with the production team experimenting with new ideas on their handmade chocolate. Hence, innovation and creativity is one of the way to keep pace with the changing markets and for business to survive. Apart from that, Mr Benjamin also ensure the products are enough to fulfil the demand of the customers by monitor and adjust the stock. As mentioned earlier, 95% of the customers are come from tourists. Therefore, it is very important to ensure the stock are enough to fulfil the demand of

Second, policy pressures on export countries and the import and export tariffs have limited the company's overseas markets. Third, LV

Lack of innovation and rising costs are the major reasons why the company is facing such