Report on Cadbury Schweppes Plc

Paper Summary:

In this article, the writer analyzes the confectionery market in order to provide strategic recommendations to secure the short, medium and long term future of Cadbury Schweppes Plc. In order to do this, the writer uses Porter's five forces model to gain insight into the organization's micro-environment, and PESTE/N analysis to examine the macro-environment. On the basis of this analysis, the writer uses a TOWS diagram to identify opportunities and threats for Cadbury Schweppes in the market. Moreover, taking into consideration the firm's strengths and weaknesses, the writer makes strategic recommendations for the firm on how it can exploit the opportunities in the market and combat the threats faced.

Outline:
Introduction
Company Profile
Market Analysis
The micro-environment
Figure 1: Forces Driving Competition in the Confectionery Market in the UK
The macro-environment
Figure 2: United Kingdom Confectionery Market Share (2006)
Identification of Strategic Alternatives
Figure 3: TOWS Analysis for Cadbury Schweppes
Discussion
Recommendations
References

From the Paper:

"Confectionary products are bought either as snacks or as luxury/gift items. Therefore, substitutes include savory snacks, fresh fruit, alcoholic beverages and other non-food items. For retailers, it is usually easier to store confectionaries rather than most of their substitutes, for example, potato chips or fresh fruit. So, although there is a large variety of items that can serve as substitutes for Cadbury's products, most of them are less practical for retailers to store. Overall, the threat from substitutes is moderate.
"Degree of competitive rivalry: The three big players in the confectionary market are Cadbury Schweppes, Mars and Nestle. As the business is characterized by automated, high-volume manufacturing, fixed costs are high and capacity changes easy to implement; these act as sparks driving up rivalry. The diverse product lines of the major players in the market as well as strong brand loyalty drive down rivalry. Overall, there is a moderate degree of competitive rivalry."

Sample of Sources Used:

• Datamonitor (2007a) Confectionery in the United Kingdom [online]. Available from: http://www.marketresearch.com/vendors/viewVendor.asp?VendorID=72 [Accessed 9 January 2008]
• Datamonitor (2007b) Cadbury Schweppes plc [online]. Available from: http://www.marketresearch.com/search/results.asp?sid=77519618-40487155648 2280070 &query=confectionery&vendorid=72&publisher=Datamonitor [Accessed 9 January 2008]
• FAME (2007) Cadbury Schweppes Public Limited Company [online]. Available from: http://fame.bvdep.com/version20071122/cgi/template.dll?checkathens=1&kick=1&product=1&user= uwe.cf9c5900e14f3e00&pw=%3cR41iSePDfu1rf6BCWw%3e [Accessed 6 January 2008]
• Lewis, H. (2007) Growth Opportunities in Confectionery [online]. Available from: http://www.globalbusinessinsights.com/content/rbcg0172t.pdf [Accessed 10 January 2008]
• Marketline (2007) Cadbury Schweppes plc [online]. Available from: http://www.marketlineinfo.com/library/iProduct_product.aspx?R=0D2193AC-7D19-476D-903F-069BEC950A48&s=IDARNZMC [Accessed 6 January 2008]

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