Caddbory Chocolates Company Target Strategy - 1536 Words

Caddbory Chocolates, a company that launched the first store in Melbourne in 2007, is a premier chocolate maker, marketer and Retailer of specialty chocolates around world. By 2016 Caddbory Chocolates has about 22 stores in Melbourne and more than 100 to all over Australia. Their product mix the finest cocoa beans at prices that the customers believe that represent value and price. Industry Overview and Analysis: Caddbory Chocolates primarily operates and competes in the retail gourmet chocolates and hot drinks store industry. This industry experienced a major slowdown in 2009 due to the economic crisis and changing consumer tastes. Before this, the industry had a decade of growth consistent. Even though to the economic slump and†¦show more content†¦In this question we saw how to use industry and competitive analysis to assess the attractiveness of a company s external environment. In this chapter, we discuss how to evaluate a particular company s strategic situation in that environment. Company situation analysis centres on five questions: 1. How well is the present strategy working? 2. What are the company s strengths, weaknesses, opportunities, and threats? 3. Is the company competitive on cost? 4. How strong is the company s competitive position? 5. What strategic issues does the company face? To explore these questions, strategists use three analytical techniques: SWOT analysis, strategic cost analysis, and competitive strength assessment. These tools are widely used in strategic analysis because they indicate how strongly a company holds its industry position and whether the present strategy is capable of boosting long-term performance. †¢ HOW WELL IS THE PRESENT STRATEGY WORKING? To evaluate how well a company s present strategy is working, one needs to start with what the strategy is. The first thing to understand is the company s competitive approach-whether it is striving for low-cost leadership, trying to differentiate itself from rivals, or focusing narrowly on specific customer groups and market niches. Another important consideration is the firm s competitive scope within the industry-its degree of vertical integration and geographic market coverage. The company s functional area support