Swot Analysis of Cadbury

3.0 SWOT ANALYSIS

SWOT summarizes the key issues from the business environment and the strategic capability of

an organization that are most likely to impact on strategy development. It refers to strength,

weakness, opportunity and threats. SWOT analysis will help the organization to prove useful in both the general environment and the competitive environment.

Strength and weakness refer to the organization¶s internal environment, over which the

organization has control. Strength is areas where the organization excels in comparison with its

competitors, while weakness is areas where the organization may be at a comparative

disadvantage. Meanwhile, opportunities and threats refer to the organization¶s external environment, over which the organization has much less control.

3.1 Strength

In this wide market Cadbury has a strong brand name. This strong brand adds the value and

consumers high in interest and is less likely to purchase competitors¶ product. Moreover, it also

can force change and demand to be heard. Cadbury always characterized as family brand or

parent brand. A parent brand works as an µumbrella¶ under which additional sub-brands can be

sold. Cadbury Dairy Milk, Cadbury Crunchie and Cadbury Wispa are those examples of a

mixture brand strategy. This approach allocates for the most favorable use of the corporate

(family) brand name. Meanwhile, it¶s also allocating an individual brand to be recognized. Cadbury Wispa is the well known product which can give as example for this statement. In

addition, research shows that 96% of Irish consumers identify the Cadbury brand. Meanwhile,

74% state that when it comes to chocolate, only Cadbury comes into people¶s mind and only it

will do. The growth of strong brands has been input to the growth of Cadbury Ireland. The

benefits that Cadbury gets to gain are it will help to enhance company value by possessing of a

strong brand. Moreover, customers¶ favorite and loyalty on this brand brings a positive view and

it will ideal to competitors. Cadbury successfully rule the market place by overcoming the barrier to competition functions in market. This means competitors will find the path to enter the market

harder.

Between the year 2004 and 2007, Cadbury¶s organic revenue growth averaged 6% a year, a

major increase on the previous four years. When Cadbury¶s confectionery growth averaged less

than 3%, and the Adams business, which Cadbury brought in 2003, hardly grew. Cadbury have

drastically accelerated its growth since 2004 by unchaining the potential of the Adams business

and by largely growing its investment in innovation, marketing and sales. Graph 4.0 in Appendix

shows a significant growth of Cadbury. Cadbury successfully achieved its desire of achieving

between 4% and 6% annual organic growth for the 2008-2011. The reasons behind this success

are Cadbury has strength of its brands and market positioning. Moreover, Cadbury also increased

its investment in product innovation, marketing and sales. Cadbury also concentrates in its

greater exposure to faster growing categories such as, gum and emerging markets. Lastly, the market has grown consistently at around 5% every year for the last four years because of the strong demand for confectionery. Cadbury¶s revenue aims allow for some good reasons of its

portfolio as Cadbury focus on its efforts on profitable growth.

3.2 Weakness

Cadbury has a fragile position in U.S market. Cadbury failed to run its business successfully in

U.S and they failed to make profit that they get to earn in other countries. Besides, Cadbury also

has lack of distribution