Essay about Strategic Analysis of Thorntons

2285 Words Nov 16th, 2008 10 Pages
Strategic Analysis of Thorntons and the
Confectionary Market

This essay will discuss the problems Thornton’s has experienced over the last few years and what challenges they face in current period between 1997-2002, examining the competitive environment and internal analysis as well as external environment (Political, Economical, Sociological, and Technological - PEST). It will also identify and evaluate Thornton’s strategic development from set up to the present time using the relevant framework and strategic tools. The essay will conclude by identifying possible strategies that Thornton might pursue in the future with ambiguous reasons supporting these recommendations.

Political

Economical
• Mail order response
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Through introduction of Thornton’s cafes introduction is weak as they have competition like Costa and Starbucks as demonstrated below in figure 3, Porter’s Five force model and hence its a threat and right measures required to be taken to make it into a strength and opportunity, providing an intense challenge to them and important as its an area along with gifts they will be looking at to gain non-seasonal market in.

Thornton’s are facing challenges in the UK and French markets after the devaluation of the pound sterling and downturn in the French economy, where they will have to opt to the strategy of lowering the demand or prices to meet their targets, as these two markets have been the more influential markets in their success and are a strength for the company that is posing an external threat. Their previous strength has been their sales in seasonal period which has now become a threat as they have failed to meet the 15% target set on year on year profits.

Figure 3: Porters 5 force Models

As figure 3 (Porters five force model) demonstrates Thornton’s has competition threat from supermarkets such as Walmart Asda and Tesco, the Boots, Marks and Spencers and BHS retail chains and Woolworths, with their large range of confectionaries, offering some competing products, including imported chocolates, being large retail stores they have bigger buying

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