Hershey needs to establish competent supply chain

Info icon This preview shows pages 5–8. Sign up to view the full content.

View Full Document Right Arrow Icon
Hershey needs to establish competent supply chain with numerous suppliers and also testing the product design with different materials, if the price rises on raw- food materials, then the company can transfer to another one.The expand of business depends on the company's dedicated suppliers. A good case in point that Hershey can learn from Wal-Mart and Costco is that The third-party manufacturers developed by these companies rely entirely on their businesses,
Image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
creating a situation in which the third-party manufacturers' bargaining power is much lower than that of Wal-Mart and Costco. How can Hershey deal with buyer's bargaining power? Hershey should build a enormous customer base. There are two ways of help. It will decrease buyer's bargaining power and provide opportunities for the company to simplify its sales and production process. Through the express innovation of new products, customers usually seek the discount and discount of the old products, so if the company continues to introduce new products, it will limit the bargaining power of the buyers. The new products will also reduce the defects of Hershey's existing customers to competitors. How does Hershey deal with alternative products or services? Through service oriented rather than product orientation. Hershey needs to understand the core needs of customers, rather than what customers buy and also increase the customer's conversion cost. How does Hershey Co cope with the fierce competition between the existing competitors in the confectionery industry? Through the construction of sustainable differentiation By setting up a scale to compete better To cooperate with our competitors to gain market size, rather than compete for small or medium market.
Image of page 6
Reference Aryeetey, E 1994, ‘Private Investment Under Uncertainty in Ghana’, World Development, vol.22, no.8, pp. 1211-1221. “Chocolate is good for you” , Chocolate Trading Co. July 13 th , 2005 . Phatak, A.V 1983, Important Aspects of the International Component of an Organization's Operating Environment International Dimensions of Management , Wadsworth, Belmont, CT. Porter, M. E 1980, Industry Structure and Competitive Strategy: Keys to Profitability , Financial Analysis Journal , v ol. 36, i ssue 4, p p. 30-41, 12p . The Hersheys Company, Cocoa for Good , The Hershey Company, viewed 31 st March 2018, < https://www.thehersheycompany.com/en_us/responsibility/good- business/creating-goodness/cocoa-sustainability.html >. The Hershey Company, Hershey Co. Form 10-K , The Hersheys Company, viewed 31 st March 2018, < https://www.thehersheycompany.com/assets/pdfs/hersheycompany/2009AnnualRepo rt.pdf >. “U.S. Labor Department Funds Project to Evaluate Effectiveness of Anti-Child- Labour Efforts in the Cocoa Industry.” World’s Technology News. October 4 th , 2006 Zounmenou, D 2009, ‘Situation Report. Ghana’s 2008 election: towards a
Image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
consolidated democracy?’, Institute for Security Studies .
Image of page 8
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern