Identify the direct competitors of Grandma’s Best Chocolate Factory using the Competitive Group Analysis.

External Analysis. Here you need to use available resources on the industry, the economy, and competitors to complete this assignment. You have rich information available from sources such as magazine, newspaper, US government, Internet, and CSUS library. Remember, during the analysis, all information and data must be from your research on an industry from reliable sources.

a. Work through Five Forces Analysis by answering the questions in each of the 5 competitive forces. Do provide your research on industry rivalry, the threat of substitute products, the power of buyers, the power of suppliers, and the threat of
new entrants.

b. Identify the direct competitors of Grandma’s Best Chocolate Factory using the Competitive Group Analysis. Construct a similar graph that Dr. Niu illustrated in class and provide information after the graph. You can gather the information by asking some questions such as: what do those competitors offer; In what markets…etc.

c. Finish by listing and explaining the overall Opportunities and Threats based on your own research, observations, and understandings, from previous steps. Determine whether this industry is favorable or unfavorable for Grandma’s Best Chocolate Factory.

Instruction:
• Construct a graph to show the 5 forces analysis with textbox representing each
competitive force with explanations.
• Identify the direct competitors by constructing similar figure from the lecture.
• List and explain the industry opportunities and threats.
• You only need to provide your analytic results, DO NOT include any strategic recommendations.

Answer & Explanation

Solved by verified expert

To identify the direct competitors of Grandma’s Best Chocolate Factory, we can conduct a Competitive Group Analysis. The process involves identifying the key factors that customers consider when making a purchase and comparing these factors across different companies.

Step 1: Identify key factors
The key factors that customers consider when purchasing chocolate may include factors such as:

Quality of chocolate
Variety of chocolate products
Price of chocolate
Availability and accessibility of chocolate
Brand reputation and recognition

Step 2: Identify potential competitors
Based on the key factors, potential competitors to Grandma’s Best Chocolate Factory could be:

Lindt & Sprüngli
Ghirardelli
Godiva
Hershey’s
Ferrero Rocher

Step 3: Compare competitors
Once potential competitor

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Step-by-step explanation

s have been identified, we can compare them based on the key factors.

Quality of chocolate: Lindt & Sprüngli, Godiva, and Ferrero Rocher are all known for their high-quality chocolate. Ghirardelli and Hershey’s are more focused on producing affordable chocolates rather than high-end, premium chocolates.
Variety of chocolate products: Godiva and Lindt & Sprüngli offer a wide range of chocolate products, including truffles, bars, and gift boxes. Ferrero Rocher is known for its iconic hazelnut-filled chocolates. Hershey’s is well known for its chocolate bars, while Ghirardelli offers a variety of chocolate products but with a focus on baking chocolate.
Price of chocolate: Godiva, Lindt & Sprüngli, and Ferrero Rocher are all known for their high-end, premium chocolates and therefore, are relatively more expensive than Ghirardelli and Hershey’s.
Availability and accessibility of chocolate: All of the competitors have a significant presence in major markets around the world, but Godiva and Lindt & Sprüngli are more commonly found in luxury or high-end retail outlets. Hershey’s and Ghirardelli chocolates are more commonly found in convenience stores, grocery stores, and drugstores.
Brand reputation and recognition: Godiva and Lindt & Sprüngli have a strong reputation as high-end, luxury chocolate makers. Ferrero Rocher is well-known for its hazelnut-filled chocolates, while Hershey’s is known for its milk chocolate. Ghirardelli has a reputation for high-quality baking chocolate.

Based on the comparison, the closest competitors to Grandma’s Best Chocolate Factory are likely to be Lindt & Sprüngli, Godiva, and Ferrero Rocher.

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