Case Study: Rogers' Choclates Essay example

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CASE 9: Rogers' Chocolates Strategic Management INTRODUCTION Rogers' Chocolates is the oldest chocolate company in Canada based in Victoria, British Columbia. Rogers' Chocolates focuses on the premium chocolate market and differentiates itself by delivering award winning quality products at a fair price; this combination creates a good value for its customers. They also have expertise at creating an outstanding customer experience within their Victorian themed retail locations that have also won awards. The company is privately held and currently focuses its business in four market areas, direct retail , online/mail order , wholesale, and sales from a restaurant in Victoria. The company also produces and sells a line of premium …show more content…
Higher fixed production costs adds to this pressure. The addition of new competition by established companies such as Hershey's and Cadburys. Competitive pressure from potential new entrants is medium as most of the major players in the industry are already in the premium chocolate market; the projected growth rate in the market will strongly attract new upstarts but they will have challenges developing distribution and retail penetration with little to no brand awareness. Firms in other industries will have little impact in this market as there aren't any strong substitutions to premium chocolate. Competitive pressures stemming from supplier bargaining is mixed; large-scale manufacturers will enjoy less pressure from suppliers due to economies of scale while smaller niche companies will not have as much influence, especially in the area of organic and fair trade raw materials. Pressure from the buyer community is fair; demand is high but so is the ability to switch brands. Growing demand for socially responsible products, such as fair-trade and organic will increase pressure from the buyers. The current driving forces in the market are the high growth rate in the premium market and the entrance of new major firms; consumers' emerging interest in fair-trade and organic products is also a force to be considered. Key success factors in this market include a well known and respected brand and