INTERNATIONAL MARKET-ENTRY STRATEGY

HERSHEY’S COMPANY

SITUATION ANALYSIS

1.1 THE PHYSICL FLOWS

HERSHEY’S SUPPLY CHAIN STRUCTURE

INFORMATION MANAGEMENT• LOGISTIC INFORMATION SYSTEM

> help in planning & control logistic matters> gathered by limited test market> done by Grace Bros - a dept store chain in Sydney - use to determine brand awareness

HERSHEY’S ORGANIZATIONAL STRUCTURES

OVERALL PERFORMANCE

HERSHEY’S SUPPLY CHAIN PERFORMANCE

Ineffective supply chain

Below par

Financial problem Distribution problem

3 major competitors :

Mkt share controlled = 69.6%

BENCHMARKING

FUNCTIONS PERFORMANCE

FUNCTION Benchmarked

Manufacturing HIGH

Distributors LOW

Retailers MEDIUM

2 3

BECOME A MAJOR DIVERSIFIED FOOD

COMPANY

HERSHEY’S CORPORATE STRATEGY

LEADING COMPANY IN

EVERY ASPECT OF BUSINESS

WORLDWIDE CONFECTIONERY

MARKET LEADERSHIP

1

INTERNATIONAL EXPENSION STRATEGY

Australiamarket

AMERICA FOODS PTE LTD

EXTERNAL BUSINESS ENVIROMENT

LOW: Threat of New Entrants

LOW -> MODERATE: BargainingPower of

Buyers

MODERATE -> HIGH : Threat of

SubstituteProducts

HIGH: BargainingPower ofSuppliers

HIGH: Intensity of Rivalry Among

Competitors In An Industry

Porter’s Five Forces Diagram

ISSUES AND PROBLEMS

OPERATIONAL PROBLEMS

INTERNATIONAL EXPANSION STRATEGY

JOINT VENTURE

LICENSING

ACQUISITION

EVALUATION OF ALTERNATIVE SOLUTIONS

strategies

2) Reliable 2) Reliable

and and

effective effective

informatioinformatio

n n

managememanageme

ntnt

2) Reliable 2) Reliable

and and

effective effective

informatioinformatio

n n

managememanageme

ntnt

1) Specific 1) Specific

marketing marketing

strategy strategy

targeting targeting

the supply the supply

chainchain

1) Specific 1) Specific

marketing marketing

strategy strategy

targeting targeting

the supply the supply

chainchain

OPERATIONAL SOLUTION

INTERNATIONAL EXPANSION STRATEGY

SPECIFIC MARKETING STRATEGY TARGETING THE DISTRIBUTION CHANNEL

RECOMMENDATIONS

IMPLEMENTATION