Hershey’s SWOT Analysis 2022 – The Hershey Company

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SWOT Analysis Of Hershey analyzes, The Hershey Company or Hershey’s is the world’s largest chocolate manufacturing US multinational company. Milton S. Hershey was the founder of the Hershey company, and he laid the foundation of the chocolate brand on Feb 08, 1894. The headquarter of the company is in Hershey, Pennsylvania, USA.

Did you know? Milton Hershey became famous for his Crystal A caramel. In 1893 Milton Hershey bought his first chocolate-making equipment after seeing it at the World’s Columbian Expo in Chicago. Milton Hershey established the Hershey Chocolate Company in 1894. It was set up as a subsidiary of the Lancaster Caramel Company.

Hershey’s main products and services are milkshakes, beverages, cookies, cakes, baked items, and many other products. However, the company sells its products under various brand names like Bubble Yum, Almond Joy, York Peppermint Pattie, Twizzlers, Jolly Rancher, Breath Savers, Ice Breakers Candy, Brookside Chocolate, Reese Peanut Butter Cup, Hershey’s Kisses, and Hershey Bar.

This can only be achieved through a firm with extensive knowledge, experience and innovative strategies. To determine the strengths of the company potential, weaknesses, opportunities and threats, it is necessary to conduct an SWOT analysis by Hershey.

Hershey At A Glance – Hershey SWOT Analysis

Company: The Hershey Company
Founders: Milton S. Hershey
Year of establishment: 1894, Derry Township, Pennsylvania, United States
CEO: Michele Buck
Headquarters: Derry Township, Pennsylvania, United States
Employees (Dec 2020): 21,000
Ticker Symbol: HSY
Type: Public
Annual Revenue (Dec 2020):US$8.0 billion
Profit net income (Dec 2020):US$8.0million

Products & Services: Hershey’s Brand Chocolate Products | Hershey’s Kisses | Whoppers | York Peppermint Pattie | Mounds and Almond Joy | Reese’s Brand Products

Company Website: www.thehersheycompany.com

Hershey Competitors 

Competitors: Mars | Nestle USA | Mondelez International

Hershey SWOT Analysis

SWOT Analysis Of Hershey analyzes the brand based on its strengths weak points, weaknesses, opportunities, and threats. With Hershey SWOT Analysis it is clear that the advantages and disadvantages are internal factors, while threats and opportunities are external elements. Here we are going to talk about Hershey SWOT Analysis. Below Is The Detailed SWOT Analysis Of Hershey.

Hershey Strengths – Hershey’s SWOT Analysis

1. Large spread: The company Hershey’s is sold across over 60 nations, however it is focused in certain countries and holds a large share in the market share in different countries.

2. Creative chocolatier label: Hershey’s is an innovative chocolate brand Hershey’s is recognized for its innovative and unique chocolate company. It has brand-named itself in a variety of ways and launched a number of innovative things. One of these is Hershey’s chocolate and the different packaging types employed by the brands, and the many varieties of chocolates made.

3. KitKat license: The benefit of Hershey’s is that due to its market share that is huge, Hershey’s in partnership with Nestle also holds the USA distribution of KitKat. KitKat is another popular brand across the globe and is among the top selling chocolates. Therefore, KitKat licenses are also a source of revenues for Hershey’s.

4. Massive range of product collection: This is the Hershey’s product portfolio. As you can see in the Wikipedia link, Hershey’s is present in more than 50 different product varieties and it is a massive assortment for a chocolate maker. There is a variety of chocolate within the Hershey’s portfolio.

5. Million dollar sales every Year:  Hershey’s boasts a staggering 7.5 billion dollars in sales per year at the time of 2017.

6. Highly regarded business: Highly regarded company Hershey ranks 249 on the most highly regarded businesses list in Forbes. It also ranks 269th globally for the most reputable employers. These two figures indicate how much respect people have for the company’s name.

7. Brand equity: The brand equity of Hershey’s is ranked 94th among the most valuable brands worldwide as well as a Brand value of $7 billion. The company invests approximately 525 million dollars a every year in marketing as well as marketing.

8. Philanthropy initiatives: The company Hershey’s has put in numerous efforts to support education and even with its own educational institutions that have great facilities. Recently, as part of the Clinton Initiative, Hershey’s has pledged to ensure Basic Nutrition in Ghana.

Hershey Weaknesses – Hershey’s SWOT Analysis

1. The purchase Cocoa: Hershey’s doesn’t purchase in a coordinated manner and is criticized for it. Hershey’s does not follow fair trade practices, as is would be expected from an eminent company.

2. This expansion will be not as extensive: Even though it’s in the FMCG sector, Hershey’s is expected to expand to more than 60 countries, thereby taking on more territory.

3. Numerous small players: The market is that there are a lot of smaller and local players decreasing the market share in diverse regions.

4. False items: The issue in Hershey’s products is they are easy to replicate and this is the reason for the problems that is being confronted in the developing world where counterfeit Hershey’s are being discovered.

Hershey’s Opportunities – Hershey’s SWOT Analysis

1. Segment for snacks Apart from chocolates, Hershey’s can also snacks segment. However, this will bring greater diversification and will focus exclusively on its brand. But, many FMCG’s are in different segments to achieve economies of Scale.

2. Expansion We don’t believe 60 countries are enough for such a cherished brand, and Hershey’s will certainly expand. It actually is a tiny presence in India and the other countries where there is plenty of room for growth because of the large population.

3. Distributor network Naturally, as the company expands it is essential to have an effective distribution network increases exponentially. Because Hershey’s predominantly deals in chocolates the company must be able to pull the appropriate influence to ensure that a solid distribution network is built.

Hershey’s Threats – Hershey’s SWOT Analysis

1. A high level of competition High competition – One of the most significant threats to the growth of Hershey’s is the a lot of rivalry in the chocolatier sector. It is Mars, M&M and Cadbury that are powerful brands in this market. In the end, Hershey’s fights the competition at every step.

2. Margins shrinking The price of all goods is increasing. Costs of distribution cost, labor costs, fuel prices Everything is rising. Because of this rise in costs over time , and also because of the fierce competitive environment and the increasing margins for brands are declining. Over the course of time the bottom line gets damaged by these expenses even though the top line remains consistent.

3. Awareness of health As time passes, more and more individuals are being aware of the benefits of living a healthy life style particularly after a number of news and blogs have been focusing on these. The first recommendation in the health guidelines is to cut down on eating sugar or sugar-based products. Because chocolates themselves are sugar-based, many people are abstaining from chocolate and the consumption of chocolate is declining.

4. Raw material issues Problems with raw materials Cocoa is the main ingredient for Hershey’s in addition to the massive consumption of Cocoa throughout the globe in a variety of varieties. Therefore, obtaining the correct quantity of Cocoa is a significant cost and bottleneck for production.

Hershey’s SWOT Analysis Template

Hershey's SWOT Analysis Template

This is the SWOT report that Hershey has done. Please let us know if you have additional suggestions to add.


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