Swot Analysis Of Ezaki Glico Company

Part 1

1.1 Introduction of company Ezaki Glico Company is a Japanese confectionery company in order to produce caramels containing glycogen, a substance found in oysters. This company manufactures Confectioneries, Ice Cream, Ice Products, Processed Food Products, Dairy Products and Baby Formula. By 1922, Ezaki Guriko Kabushiki-gaisha was go into business with his own candy, its product was beginning sales at a department store in Osaka. Thus, the Ezaki Glico Company was established on February 11, 1922 by Ezaki. Glico rapidly became popular and the company was forced to extend manufacture ability and move manufacturing to a new facility in Toyosaki in 1925. By 1927, Ezaki Glico became the first Japanese confectionery company. The operate

Based on the researched, Ezaki Glico Co.Ltd is belonged to the monopolistic competition market supported by five distinguishing characteristic which is product differentiation,many sellers,easy market entry and exit and price makers.

The first characteristic that support Ezaki Glico Co.Ltd is belonged to monopolistic competition market is product differentiation.Pocky try to make their product slightly different with other brand by using a richer and darker chocolate. Many consumers found that the chocolate used by Pocky is more real than other brand. Pocky using a better quality chocolate to compete with other competitors

Moreover, there are many sellers in the market selling the product which is almost similar to Pocky such as Pepero, Lucky Stick and others. Pepero has only a small market share and its pricing decision has a negligible effect on the market price. No matter what the price set by Pocky it will not affect the current market price of similar

Becoming a monopoly market will probably cause the production of the Pocky increase. Long-run average cost of Pocky will fall as a result of large-scale production. Pocky can remain dominant in industry because others small firm cannot product a product at a low price compare to Pocky. Pocky is able to produce at a lower per-unit cost than others. Thus, the price of Pocky may drop. It is also consider a better off to the consumer. In conclusion, economies of scale can make a firm become dominant in the market and may also cause the price of Pocky decrease it is a better off to both supplier and consumers

PART 2: Compare the price of the product/service and the close substitution

2.1 Describe your feelings

Substitute goods are a product that can replace function of a good. Pocky has one closest substitute which is Pepero. They share almost the same characteristics which is both are a snack stick dipped with different flavor but the price are different. The market price of a pack of Pocky is around RM2.50 but a pack of Pepero is around RM4.80.

2.2 The reasons why they can sell at a lower price as compared with competitor Nowadays, not only the young or old alike like to eat snack. Pocky and Pepero are some of the well known snack in the market. We know that the Pocky stick are selling good in the market but Pepero stick are not bad too. After a survey, Pocky has a lower price compared to