SWOT Analysis of Cadbury (Cadbury SWOT)
This is a detailed SWOT analysis of Cadbury. It attempts to explore some of the strengths and the weaknesses of Cadbury. It also explores if there are any opportunities and threats that the company should focus on. Cadbury is a British multinational confectionery company which has been fully owned by Mondelez International since 2010. It was originally established in 1824 by John Cadbury at Birmingham in England.
Strengths of Cadbury
Cadbury is a well-known family brand around the world among adults and children and is one of the most reputed chocolate distributors. It operates in many countries and this global presence has largely helped it increase its revenue streams. Its biggest markets are the UK, Australia, India, and China
The company has a strong manufacturing process which can implement new changes according to customer demands. Cadbury Dairy Milk is one of the most famous and widely sold chocolates.
Cadbury invests heavily on research and development and innovates new and different types of chocolates. It has a wide variety of chocolates with different types of flavours, giving customers a large selection to choose from. It has gained many loyal customers who only prefer to buy its chocolates. It is in fact the fastest-growing grocery brand in the UK as its chocolate sales are soaring (Selwood, 2020).
Cadbury is a socially responsible organization and has started a program called ‘Cocoa Life’ which works directly with cocoa farmers to provide training and community planning skills. This in turn helps cocoa communities build their future (Mondelez United Kingdom, 2021).
Weaknesses of Cadbury
Weakness is the next area of discussion in the SWOT analysis of Cadbury. The products of Cadbury are high in sugar. As consumers become more health conscious and due to the unavailability of dietary options as well, they may shift to other brands of chocolates.
Many analysts argue that Cadbury’s chocolates are higher in price compared to other chocolates. Therefore, there are many customers who tend to purchase cheaper chocolates. Similarly, Cadbury is over reliant on confectionary.
Cadbury’s business strategy has raised concerns in some circles. It announced that its chocolate bars sold in multipacks will shrink by the end of 2021 to reduce their calorie count (BBC, 2020). This is good from health perspective, however, its decision to keep the same price for the shrunk amount has not been well received by many customers.
Opportunities for Cadbury
Cadbury has an opportunity to move its production functions to countries with cheaper labour costs. By this it can reduce its costs. Likewise, emerging markets provide it with an opportunity to grow and increase revenue streams.
Investment in producing healthier versions of chocolate will increase the demand for chocolate from health-conscious consumers. As Cadbury is a leading brand in the confectionary industry, it can expand its products range to include food and beverages as well.
Threats to Cadbury
Threat is the last topic of discussion in the SWOT analysis of Cadbury. Counterfeit chocolates can pose a threat to the reputation of Cadbury. Threat of food poisoning can result in lawsuits and customers losing their trust in the brand as well.
Change in government regulations such as higher taxes on sugary products will in turn increase costs and the company may have to charge higher prices which will lead to a reduction in demand.
Competitors manufacturing chocolates of higher quality and selling at cheaper prices may impact on Cadbury’s loyal customer base. Its main competitors are Mars Wrigley, Hershey’s, Nestle, and Kraft Foods.
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Last update: 13 February 2021
BBC (2020) Cadbury accused of shrinkflation as packs get smaller. https://www.bbc.co.uk/news/business-53442884 (accessed 12 February 2021)
Mondelez United Kingdom (2021) Introducing cocoa life, available at: https://www.cadbury.co.uk/cocoa-life (accessed 12 February 2021)
Selwood, D. (2020) Cadbury is Britain’s fastest-growing grocery brand as chocolate sales soar, available at: https://www.thegrocer.co.uk/confectionery/cadbury-is-britains-fastest-growing-grocery-brand-as-chocolate-sales-soar/603365.article (accessed 10 February 2021)
Author: Fahim Shah
Fahim Shah has been working in the UK as a visiting lecturer in Business and Tourism for the last 10 years. After completing a Bachelor’s degree in Business and Marketing, he went on to gain an MBA from the University of Bradford, the UK. He is a Fellow of Advance HE (FHEA) and a full member of the Association of Business Executives (ABE).