Published by MBA Skool Team, Last Updated: January 22, 2022
SWOT analysis of Hershey's analyses the brand by its strengths, weaknesses, opportunities & threats. In Hershey's SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.
SWOT Analysis is a proven management framework which enables a brand like Hershey's to benchmark its business & performance as compared to the competitors. Hershey's is one of the leading brands in the FMCG sector.
The article below lists the Hershey's SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the Hershey's SWOT Analysis:
For Hershey's, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position.
The strengths of Hershey's looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Below are the Strengths in the SWOT Analysis of Hershey's :
1. Hershey's is one of the oldest and largest chocolate manufacturer of North America
2. The company has a strong brand name and awareness globally
3. Hershey's has diversified products and a large number of variants in the chocolate and candy business
4. Strong social and public image through the school for orphan kids and the Milton Hershey school
5. Hershey's is renowned for its high quality & tasty chocolates
7. The company produces more than 70 million candies daily, and a strong supply chain and technology
8. Customer loyalty has been built through TVCs, online marketing, social media and advertising
9. The Hershey's amusement park also adds to the brand credibility
10. Hershey's financial strength can be seen from the fact that is on NYSE, with an annual revenue of around $8 billion
The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the Hershey's SWOT Analysis:
1. Intense competition means limited market share growth for Hershey's
2. Increased geographic coverage leading to dilution and lesser authority
The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in Hershey's SWOT Analysis:
1. Newer innovations and products in the chocolate as well as dessert segment can help the brand
2. International expansion can increase business sales for the Hershey company
3. Improvements in distribution channels and tapping online ecommerce channels can boost business further
The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of Hershey's are as mentioned:
1. Intense competition in this category means limited margins for the company
2. Increasing concerns of health, increasing occurrences of obesity and diabetes can lead to reduction in consumption
3. Change in consumer tastes can affect business sales
4. Increasing prices of milk and sugar as raw materials are indirect ways which can affect business for Hershey's
There are several brands in the market which are competing for the same set of customers. Below are the top 7 competitors of Hershey's:
The Great American Chocolate Bar; The Sweetest Taste on Earth
Offers more than 100 types of different chocolates and chocolate based products
Chocolate based products
Children and adults from the middle and upper middle class
One of the most sought after and tastiest chocolates
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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