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The Hershey Company

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by

Rachel Cole

on 27 April 2016

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Transcript of The Hershey Company

The Hershey Company
Founded in 1894
Confectionery Company
Headquartered in Hershey, PA
Company Background
Value Chain
Allan Candy Company
Shanghai Golden Monkey Company
KRAVE Pure Food, Inc.
Acquisitions
Sugar-free
Gluten-free
Kosher
So-Fit Brand
Product Diversity
Started as a Low-Cost provider
Transitioned to Best-Cost
Huge brand portfolio
Reduce costs through outsourcing
Strategy
2015 revenue $7,387,000,000
Steady growth
Long-term debt
Financial Analysis
Supply Chain
Resources and Core Competencies
Corporate Social Responsibility
Porter's Five Forces
Hershey International
Recommendations
2007 Supply Chain Revitalization
Manufacturing plants
Distribution Centers
Hershey Brand Loyalty
High quality chocolate
CSR Initiatives
Shared Goodness Program
Project Peanut Butter
CocoaLink Program
United Way and Children's Miracle Network
Health food movement
Advertising
Events Marketing
Expensive - machinery, labor, production, quality control, raw materials, etc.
Limited shelf space
High advertising expenditures
2. Threat of Substitutes
Moderate to High
Snack industry
1. Threat of New Entrants
Low

Porter's Continued...
3. Rivalry
High
Successful competitors, such as Nestle or Mars, who also have an extensive brand portfolio
4. Buyer Power
Low to Moderate
Differentiation of products
5. Supplier Power
Low to Moderate
Many suppliers available in multiple locations
Provide raw materials, such as dairy, cocoa beans, and sugar
retail stores in US, Canada, Mexico, Brazil, China, India, Korea, and Japan
30% of total revenues come from international market
focusing on emerging markets to increase international revenue
Full transcript