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Hershey's SWOT Analysis

Here is a detailed SWOT analysis of Hershey's covering strengths, weaknesses, opportunities and threats.

Published by MBA Skool Team in FMCG category Last Updated: December 11, 2023Read time:

Hershey's Strengths

  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
  6. The company produces more than 70 million candies daily, and a strong supply chain and technology
  7. Customer loyalty has been built through TVCs, online marketing, social media and advertising
  8. The Hershey's amusement park also adds to the brand credibility
  9. Hershey's financial strength can be seen from the fact that is on NYSE, with an annual revenue of around $8 billion

Above are the strengths in the SWOT Analysis of Hershey's. The strengths of Hershey's looks at the key internal factors of its business which gives it competitive advantage in the market and strengthens its position.

Hershey's Weaknesses

  1. Intense competition means limited market share growth for Hershey's
  2. Increased geographic coverage leading to dilution and lesser authority

These were the weaknesses in the Hershey's SWOT Analysis. The weaknesses of a brand are certain aspects of its business which it can improve.

Hershey's Opportunities

  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

Above we covered the opportunities in Hershey's SWOT Analysis. The opportunities for any brand can include prospects of future growth.

Hershey's Threats

  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

The threats in the SWOT Analysis of Hershey's are as mentioned above. The threats for any business can be external factors which can negatively impact its business.

Hence this concludes the Hershey's SWOT analysis.

About Hershey's

The table below gives the brand overview along with its target market, segmentation, positioning & USP

Hershey's Overview
Parent Company

Hershey Trust Company

Category

Chocolates

Sector

FMCG

Tagline/ Slogan

The Great American Chocolate Bar; The Sweetest Taste on Earth

USP

Offers more than 100 types of different chocolates and chocolate based products

Hershey's STP
Segmentation

Chocolate based products

Target Market

Children and adults from the middle and upper middle class

Positioning

One of the most sought after and tastiest chocolates


This article has been researched & authored by the Content & Research Team which comprises of MBA students, management professionals, and industry experts. 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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