Rogers Chocolates

2735 Words Feb 23rd, 2013 11 Pages
Question 1

What is competition like in the premium chocolate industry? Which of the five competitive forces is strongest? Which is weakest? What competitive forces seem to have the greatest effect on industry attractiveness and the potential profitability of new entrants?

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
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With the increasing trend in healthy diet preference, the underlying drivers of change of competition in premium chocolate industry at the strongest level are the buyers’ preferences for differentiated, refined products, instead of standardized ordinary products that are no longer demanded. In addition, baby boomers - generation with their disposable income are spending a lot on high quality premium chocolates.

Moreover, consumers and employees are also demanding chocolate companies to follow good corporate social responsibility practices in addressing the environmental concerns in terms of how to design its packaging, procurement and operational decisions. Human rights concerns are also high in terms of consumer expectations of chocolate companies with respect of forced child labour in West Africa. All of these driving forces - societal concerns, attitudes and change in lifestyles, are strong enough to shape up the competition and impose the constraint on chocolate industry profitability and competitive survival.
One important underlying driver of change in the chocolate industry is the large manufacturers lobbying to change the definition of the term "chocolate" under USFDA guidelines, if they are successful in doing this then this could potentially have a dramatic impact on the competitive environment, with lots of cheaper products

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