Introduction
Hershey’s is certainly one of the main snack manufacturers and distributors worldwide. Such success was achieved with the effective employment of economic, HR, and marketing practices that have facilitated attraction and consumer loyalty. Moreover, the widespread availability of the products maximizes profit. In this paper, Hershey’s business model will be examined to determine the factors that minimize risks and maximize financial profit. Namely, the distribution channels, including direct and online ones, the economics focused on branding and global presence, as well as partial adherence to consumer decision trends generate efficiency in sales increase.
Discussion
Hershey’s is similar to other companies within the food and beverage industry. Namely, the main distribution channels are the retail stores in which the company competes with other snack manufacturers. However, their online presence has increased, such as the online presence of other organizations selling identical goods (Nie et al. 32). Moreover, the company’s economics are highlighted by the desire to diversify products and places in which they are sold. Thus, as a global company, the distribution centers are actors within the international supply chain (Buck). Nonetheless, it is essential to address a potential barrier, namely, the lack of focus on more sustainable practices. Chocolate consumers are more likely to seek goods from companies using fair trade raw materials (Del Prete and Samoggia). Hershey’s business model does not imply investing in higher-quality materials. However, the brand maintains high competitiveness and fits into consumer decision-making choices by offering affordable and diversified goods.
Conclusion
Hershey’s has managed to remain one of the most successful food companies by diversifying products, selling goods globally, and maintaining relatively low prices. As a result, they maintain a competitive advantage. Furthermore, the company’s branding and well-established name are other elements that influence consumers to support the corporation. Thus, Hershey’s remains a leading chocolate and snack producer despite the presence of countless rivals offering similar goods.
Works Cited
Buck, Michele. “The CEO of Hershey on Turning a Candy Company into a Snacks Empire.” Harvard Business Review, Web.
Del Prete, Margherita, and Antonella Samoggia. “Chocolate Consumption and Purchasing Behaviour Review: Research Issues and Insights for Future Research.” Sustainability, vol. 12, no. 14, 2020, p. 5586.
Nie, Jiajia, et al. “Retailers’ Distribution Channel Strategies with Cross-Channel Effect in a Competitive Market.” International Journal of Production Economics, vol. 213, 2019, pp. 32–45.