Rogers Chocolates Case Study (Internal/External Analysis)

10435 Words Mar 16th, 2011 42 Pages
Roger’s Chocolates

Table of Contents
External Analysis 3 A. Chief Economic Characteristics 3 B. Five Force Analysis 7 C. Driving Forces 9 D. Strategic Group Map 11 E. Key Success Factors 12 F. Overall Attractiveness of the Industry 13

Internal Analysis 14 A. Identification of Business Strategy 14 B. Financial Analysis 16 C. SWOT Analysis 19 D. Competitive Strength Analysis 22

Test of Winning Strategy 23 A. Fit Test 23 B. Competitive Advantage Test 24 C. Performance Test 25 D. Summary of Tests of Winning Strategy 26 E. Identification of Strategic Issues 27
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Risky as well since it is a specialty market with strong rivalry already. | Less chance of competition being able to hurdle marketing costs | Product Innovation(Strong, Medium, Weak): Medium, although marketing is more important than product quality | (-) | (+) | Costs to improve recipes are not important; however, organic chocolates could innovate market | Don’t need as much knowledge to create chocolates; can focus on marketing | Costs to improve recipes are not important; however, organic chocolates could innovate market | Pace of Technological change:(Fast, Moderate, Slow)Very Slow | (-) | (+) | Not much need for innovative technology | Not much need for innovative technology. Makes entry easier. | Not much need for innovative technology | Economies of Scale: Strong, many units are needed in order to spread high marketing costs and direct labor | (+) | (-) | Companies in the industry have an easier time because they already have brand name established | Hard for companies to enter the market | Strong brand reputation; need to constantly develop marketing and packaging strategies | Conclusion: Good to be in the industry, but there is still the potential for new entrants who possess high capital resources | (+) | (+) | Steady market with some growth opportunities, need to maintain brand image to succeed | Opportunity to take over changing trends; however, expensive to enter | Very highly established brand name; now focus on