Case Study

3982 words - 16 pages

Rogers’ Chocolates Formulation and Implementation in Single Business Firms 1. Strategic issue or problem statement With the mission of committing towards the production and marketing of fine products that reflect/maintain excellence and quality, Roger’s chocolate company has an opportunity to attain this in the premium chocolate market which has been growing annually at a rate of 20%. The success determinant of the premium market is quality and brand market, prerequisites (excellence, quality and brand) which Roger’s has the ability to meet this criterion. 2. Explanation of the Strategic issue or problem statement Identification of opportunities has been considered by various scholars, Shane ...view middle of the document...

This will increase the company’s sales and will go hand in hand with the company’s mission, to triple or double the company’s size within 10 years. To design a successful plan of action Ferrell & Hartline (2008) indicates that strategists need to clearly understand critical ingredients such as mission. Grönfeldt & Strother (2006) refer to mission as a business strategy that answers the question in regard to what business is or a culture glue. Roger’s mission is not clearly stated but one can tell from its operation that they do not compromise on quality, brand and excellence. Roger’s also has concrete goals or rather strategic objectives (Srinivasan et al, 2007) ‘doubling or tripling the company in ten year’s time’. When it comes to business strategy, Roger’s uses differentiation as a business strategy (handmade, high quality chocolates with assortments that differentiate the company from its competitors making it acquire a loyal customer base) (Hitt et al, 2008). 3. Alternative strategies Even though Roger’s company has managed to receive considerable success with the differentiation strategy, the strategy cannot fully help Rodgers increase market share (triple or double the company within 10 years) with unaddressed issues such as stiff competition from premium chocolate brands that have other competitive advantages such as in the case of Godiver, a brand that has much better advertising, distribution and advertisement, Lindt company that produces and broadly distributes variety of chocolates and Belgium producers selling chocolates in Canada. Additionally, the brand image is not well recognized beyond Victoria, American tourists (major customers) had seized coming to Canada due to American dollar decline, lack of internal systems capacity to meet sales increases and lack of an

organizational culture that addresses the goals and mission of the company. With this in mind, three competitive strategies had to be formulated. A. Expansion/distribution of Roger’s premium chocolates in more Canadian retail shops Advantages  Most competitors are also expanding their business (widespread distribution) and this will also act as a counter attack strategy that will leverage competition by providing Roger’s with equal expansion opportunities with the competitors.  Considering that the major target market of the premium chocolates in Canada is childless couples who are of middle age, established families and nesters having high income (persons who have not time for walking long distances in search of chocolates, love staying at home yet want enjoy the taste of chocolates), expanding in retail stores is ideal as this will help roger’s reach the target market (create customer convenience).  Retail shops are already well known for what they do (specialization) and hence, it will be much cheaper or cost saving than Rodger’s trying to run an individual distribution channel.  Retailers are reseller and usually tend to use persuasive techniques that...

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