The report about the external environment of the chocolate industry Hershey belongs to.

Case study on Hershey | Business & Finance homework help

Hershey has to compete in a competitive market. According to Market Watch 2020, the global chocolate market is estimated at $111 billion in 2017. It will grow to over $146 billion by 2024. There are both large multinational companies such as Mars and Nestlé that have a presence across many markets as well as regional players who focus on a specific country or region. Due to rising disposable incomes, premium chocolates have seen an increase in demand.

Concerns about sugar have led to customers opting for dark chocolates with more cocoa. However, vegan and dairy free options are also popular among health-conscious buyers. In addition, technology advancements allow manufacturers to make high quality chocolates for lower costs with improved efficiency and automation. These products are more cost-effective than their counterparts.

Hershey also faces competition from private label products since most supermarkets now offer their own brand’s version of different confectionary products in an effort to keep margins high despite pressure from discount retailers like Walmart and Target. If the company does not take precautions, it is possible for changes in macroeconomic factors like currency exchange rates to affect raw material prices. This could adversely impact Hershey’s bottom line profits. A geopolitical issue such as tariffs placed on imports may also affect prices, causing financial loss if the company is unable to pass certain portions onto their customers.

This is a snippet preview, get a complete custom solution
Access a Complete Custom-Written Paper from Our Writers, Now!!