SWOT Analysis of Hershey

Hershey is most famous and renowned chocolate manufacturing company in North America. Before 2005 this company was also known as Hershey Foods Corporation. The original home of Hershey chocolate in Pennsylvania where headquarter of company is also located. Hershey was established in 1894 by Milton S. Hershey. Nowadays, the products of Hershey are available all over the world.


• The social and public image of Hershey was enhanced with its contribution of The Milton Hershey School for orphans.

• Hershey set new standards of chocolate with its wide range of chocolate products.

• The company also holds strong brand name due to its largest production of pasta in USA.

• With its renowned chocolate Hershey also produce variety of products.

• Company promotes its brand name by contributing in various segments of industry like commercial segment, resorts, entertainment and other market areas.

• Hershey promotes research and education by facilitating teachers and students with their dedicated toll free number.

• To motivate its employees Hershey provide various facilities to employees that include parks, schools and housing facility.

• Hershey is $ 4 billion Company with established reputation all over the world with 30.7% market share of candy industry in USA market.

• Employees of company follow strict code of conduct laid by the founder of company that includes virtues like integrity, honesty, respect and quality.


• The debt own by the company is more than other companies working in market.

• Due to greater geographical distribution of company, the company control is lacked by authority.

• Huge increase in advertisement expense that exceeds up to 46%.

• In the industry of chocolate confectionary worldwide the shares holds by the company are lowest that is about 10% only.

• The increasing price of Cocoa beans is matter of concern for company as increase in price of product can reduce consumer purchasing to great deal.


• With more variation in products and taste the market of Hershey can be enhanced worldwide.

• Dark chocolate by Hershey offers various advantages from health point of view.

• The effective communication of company among suppliers and customers.

• With production of cocoa in areas like India can reduce cost of cocoa.

• The greater customer loyalty ensures the continuous growth of company.

• Various untapped countries like China, Malaysia, Vietnam, India, Indonesia and Thailand can offer better opportunities for company.

• By producing environment friendly products Hershey can establish its reputation in community.

• Hershey can explore other segments of candy industry by manufacturing variety of non chocolate products.


• Hershey has to face tough competition from rivals like Mars, Nestle and Cadbury.

• The declining health conditions of people in USA especially with rising diabetes in people, the demand of Hershey products decreases.

• The fluctuating price of cocoa in different areas of world effect the production of chocolate products.

• With developing technology the price of manufacturing technology also increases that also effects the production of company.

• The increasing demands of employees with rise in living expenses.

• Decreasing natural resources such as agriculture land, high cost of sugar and milk

• Hershey has to deal with strong competition from its rival that is Mars. Mars is established in various other locations worldwide such as Asia, Europe, Japan and Mexico.

• The criticism from various segments of society regarding lack policies for purchase of cocoa


• News by yahoo finance:  http://finance.yahoo.com/news/hershey-company-hsy-zacks-rank-050012318.html Published: 24 September 2012. Retrieved: 5th November 2012.

• Official website of company: http://www.hersheys.com/ Retrieved: 5th November, 2012.

• News releases http://topics.nytimes.com/top/news/business/companies/hershey_company/index.html Retrieved: 5 November, 2012.

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