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Essay / Research Paper Abstract
This 9 page paper considers the strategic position of Thornton's a premium chocolate manufacturer and supplier in the UK. The paper starts by examining the recent challenges faced by the company. The strategy form inception to the current day is considered and then future potential strategy is determined using a PEST analysis and Porters Five Forces Model. The bibliography cites 10 sources.
Page Count:
9 pages (~225 words per page)
File: TS14_TEthornton.rtf
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Unformatted sample text from the term paper:
in how the company can maintain this strong market presence and gain the level of sales and return required to sustain this position at the same time as being
a premium supplier where sales are seasonal or even driven. The strategy in the past was to focus on the gift market. AS seen, this was where the company
had a better market share, 6% of the gift market compared to 1% of the overall chocolate market in the UK. The company has followed an aggressive growth strategy, by
2004 in the UK there were a total of 388 shops, of which 201 were franchises (UK Retail Briefing, 2004). This growth has not only been in the UK, but
also in other markets such as France, where profits have been elusive. There has been a high increase in the number of shops, and with property costs, along with fittings
that cost between ?80,000 - ?100,000 per shop written off over only four years, each shop has to have a high turnover to be profitable. The products are highly
differentiated, not only with quality and brand image, but the equipment that is able to product chocolate with mixed colours, such as chocolate rabbits with an orange and green carrot.
This helps compete in seasonal markets such as Easter. The strategy has change to concentrate on this gift market but also facilitate more everyday items, such as smaller chocolate
bars. This aim has been to facilitate everyday purchases. The main problem is that whilst the company has been able to grow the sales, they have not seen the
same occur to profits, in 2003 accounts there is a 2% increase in sales, but a 9.6% reduction in profit. This is a worrying trend and there is the need
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