Case Study Of Cadbury

3469 Words14 Pages
BS5 1A

On March 29th, 2015


Final Assignment


CORPORATE – Case of Cadbury 3
Case description and background 3
Analysis of issues 4
Case questions 4
Summary 8
NEW VENTURE – Case of EasyJet 9
Case description and background 9
Analysis of issues 10
Case questions 10
Summary 14

CORPORATE – Case of Cadbury

Case description and background

Cadbury is a leading global confectionery company with an outstanding portfolio of chocolate, gum and candy brands. They create brands people love - brands like Cadbury, Trident and Halls. Their heritage starts back in 1824 when John Cadbury opened a shop in Birmingham selling tea, coffee and drinking chocolate. John Cadbury later moved
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They use distribution channels of the brand they bought to sell more of their existing products. For example, there was some soft drinks brands such as Canada Dry in 1986, Dr Pepper and Seven UP in 1995. Cadbury chose also to diversify their products in the non – chocolate confectionery sector, for example they bought Hollywood the French gum marker. Cadbury has developed its market in USA, France, Rumania, Turkey, etc… Recently, thanks to “functional” products such as sore throat remedies, Cadbury has a foothold in Japan and Latin America.

Distribution was a complex problem. Cadbury used competitors’ distribution system and channeled its products through those of Coca Cola, Pepsi and others independent bottlers.

Then, Cadbury Schweppes decided to focus on its strength, it was claiming to be “the leading global confectionary company with unrivalled product and geographic reach”. Cadbury’s strength are the top most chocolate provider in the world, the brand loyalty and the low cost of production due to economic of scale. In 2007, it became a new Cadbury public limited company with new goal and priorities.

Analysis of
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Strengths of EasyJet
- Price (Low): no frills, low fare, attractive pricing, unit cost per passenger, reserve pricing strategy, online booking (strong e-business), rapid turnaround times and low cost overheads
- Reliability: punctuality and safety (lower average age of fleets)
- Brand name: distinctive brand, “easy” to remember, highly distinctive branding, feature on television airline series, website painted on the aircraft, bright orange color and company slogan “Come on, lets fly!”
- Competitive advantage: flies to main airports and quality customer service
- Localization: connects to all the major destinations, airport network and market share

Weaknesses of EasyJet
- Under – utilization of resources
- Highly sensitive to additional charges
- Temporary advantage in e-tailing
- Dependence on two models of aircraft
- Lack of strategies (retain and expand)
- Hassle in changing bookings: top up difference in price depending on current price level
- Price: relying solely on price is not a good strategy, competitors may draw customers away by offering lower prices for example cost base not as low as Ryanair
- Brand versus legacy carriers
- Seasonality of earnings
- High density seating: discomfort for passengers during long distance

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