Essay on Chocolates El Ray Business Case Review

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Chocolates El Rey Case Chocolates El Rey, a medium sized Venezuelan chocolate company, produces top-quality chocolate made with single-origin Venezuelan cocoa beans. Jorge Redmond, the CEO of Chocolates El Rey, called a meeting with senior management in late November 2006 to discuss the company’s growth strategy. El Rey can accomplish this task through many ways; growing the United States industrial market using its own brand name, relocating their plants to low-income countries, or to scale up the retail segment in the United States by using multi-origin cocoa bean chocolate. Each of these viable alternatives to expand El Rey have positive and negative side effects. El Rey has come a long way since its founding in 1929; yet, the…show more content…
After this, El Rey decided to stay out of the production of cocoa beans and focus on the production of chocolate. This began the reign of President Chavez in which he limited foreign direct investment in Venezuela and limited Multi-Latinas from becoming multinationals. Policies changed constantly, and El Rey’s management was worried that attitudes towards producers of luxury goods could worsen as President Chavez’s policies become more radical. El Rey must devise a new strategy to change their target market and avoid conflict with Chavez. El Rey is currently targeting their chocolate towards a specific niche, one of wealth and economic stability. The company cannot grow if they focus on this specific niche by using high quality cocoa beans. Due to Venezuela’s limited supply, El Rey will never have enough resources to expand by selling single-origin chocolate. El Rey lacks sufficient marketing and advertising. Making a successful marketing team is important to expand and pursue entry into international markets. Right now El Rey’s marketing team is non-existent; they rely on word-of-mouth advertising to sell their products. Although successful in Venezuela, El Rey will not be able to meet Redmond’s expectations for growth using this technique. El Rey clearly has many problems that can be fixed, leaving them with many options for growth and expansion in order to succeed. One of the best

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