Hershey’s food company strategic alternatives and recommended strategy
The Hershey’s food company is a food company that was built in the early 1900s by Milton S. Hershey. At first, the candy company which was first to be established did not go well and it resulted to being closed. Later, he formed another company of manufacturing caramel, which after ten years it performed more than his expectations. Additionally, after some time the company started to get a lot of competition from other companies and the American market started to become saturated making the profits of the company to decrease. It is due to this, that there was the formation of different alternatives and strategies of Hershey Food Company.
The first alternative that the company decided to use due to the competition and the saturation of the American market was to expand their markets to the international market. The company now opted for the alternative expanding their market not only in the local market but also in the international market so that they increase their produce and their profits in general. This led to the company opening another company producing sugar in Cuba. This improved the profitability and the growth of the name of the company.
The other alternative of Hershey Food Company was to widen their investments in the neighboring countries of US to improve on the market share and the growth of the company. As compared to the European markets, transportation was very easy fro the company since it could not move over the Atlantic and the Pacific Ocean to invest. Therefore, this alternative of investing in the neighboring country led to the growth of the company leading to the increased brand recognition by its customers a significant growth in the profits of the company in general.
On the other hand, the company adopted some strategies so that it could implement the different alternatives that it was trying to venture. The first strategy of the company was the strategy of diversification. This is where the company had to be divided into very many sections. These sections were of different food products, which the company was producing at that time. This meant that the company was targeting the different customers who liked the different kinds of commodity that were available. Therefore, this led to a substantial growth in the markets of the commodities, which later lead to the increase of profits.
Another strategy that the company adopted was the strategy of continuously increasing the quality of the different commodities. Due to the changing trends in the market, the company continuously tried to increase the quality of the goods to suit the different customers. Due to the changing in times, the tastes and preferences of the different customers constantly keep on changing. Therefore, the company had to keep on improving the quality of their products to have a competitive advantage over its competitors. This led to the increase in productivity, which also led to the increase in the profits.
Lastly, the company adopted another strategy of changing the technology. This strategy was done so that the company will be in accordance to the current and existing technology in the market. This ensured that the company is not outdated and that it had a competitive advantage over its different competitors. Moreover, change in technology also helped in the increase in the production of quality goods and the efficiency of the company. Therefore, this led to a steady increase in the profits.
In conclusion, due to the different alternatives that the company adopted it led the growth of its market not only in the local area but also in the international market. Additionally, it led to the growth of the name of the company. Lastly, the different strategies that the company adopted led to the growth in the quality production of the different commodities and the efficiency in the services offered. For this reasons, the company did not fall it continued to increase its profitability and the brand name.