Get instant access to this case solution for only $15

Cadbury Case Solution

Solution Id Length Case Author Case Publisher
2166 2951 Words (16 Pages) John Ensor, Susan Laing 593-010-1
This solution includes: A Word File A Word File

Cadbury is one of the largest confectionery brands in the world that has operations in more than 50 countries. Cadbury Dairy Milk and Bournvita are best-selling products that have relatively high market share and growth potential than other products. The low bargaining power of suppliers and low threat of new entrants strengthen Cadbury’s position but the high bargaining power of buyers, high substitute’s threat, and strong competitive rivalry threaten its position in the market. The rising health-related controversies and criticisms are tarnishing the brand’s reputation among the public, so Cadbury needs to fully utilize its core competencies to enhance brand image and reputation. 

Following questions are answered in this case study solution:

  1. Introduction 

  2. Discussion 

  3. Conclusion and Recommendations 

Case Study Questions Answers

1. Introduction 

In the contemporary business world, successful business organizations are actively incorporating changes to existing business models and practices as competition is on the rise and consumers’ preferences are rapidly changing due to increasing health and environmental awareness. Although, confectionery products are highly demanded by consumers due to their unique positioning but, the confectionery industry is being severely criticized by health protection groups for its contribution to several diseases like obesity and diabetes (Raines, 2021). This report discusses about Cadbury, which is a UK-based multinational confectionery enterprise owned by Mondelez International since 2010 (Cadbury, 2021a). In this report, external and internal environmental analysis is conducted by utilizing several strategic management tools- Porter’s five forces, SWOT, VRIO, and BCG matrix to propose strategic recommendations to Cadbury.   

2. Discussion 

2.1. Porter’s 5 forces analysis
2.1.1. Bargaining power of suppliers

Cadbury has around 40,000 direct and indirect suppliers worldwide and each supplier accounts for only ten percent of raw material purchases. Ghana (West Africa), Ecuador, Venezuela, Queensland (Australia), India, and Indonesia are considered as major Cadbury’s sourcing destinations for sugar, cocoa beans, and cocoa butter (BCS, 2019). As there is a large number of suppliers available to Cadbury, so bargaining power of suppliers is low.  The Cadbury’s Cocoa Life partnership and industry’s reliance on complex agro-business supply chain further strengthen Cadbury’s position, and it is in well position to purchase inputs for cheaper and more in bulk than medium-level businesses (Egebjerg, 2016).

2.1.2. Bargaining power of buyers

Cadbury’s buyers are categorized into retailers (like Tesco, Metro Group, 7Eleven, Lidl, Carrefour, Costco, and Asda) and end-consumers. Previously, Cadbury had greater power as it was one of the largest confectionery brands in the world, and consumers were involved in impulsive buying of chocolates due to gift positioning (Del & Samoggia, 2020) but now the competition has significantly increased in the confectionery market for shelf space and there is the large number of rivals that are offering similar products at affordable prices, so the purchasing power of buyers has become increased. Moreover, the increasing incidents of product recall and rising health awareness are altering end-consumers’ preferences and ultimately lowering their switching cost to move towards more ethical and socially responsible brands (Mehmet, 2019).   

2.1.3. Competitive rivalry

Competition has become intense in the confectionery industry with the presence of the large number of national, regional, and international brands. The global confectionery industry is currently dominated by well-established brands like Mars-Wrigley’s, Nestle, Hershey’s, Ferrero, and Mondelez International-Cadbury (as shown in below graph). Due to stiff competition, there are ongoing price wars between confectionery brands. Like Cadbury, other major confectionery brands are also investing heavily on research and developments to effectively compete in terms of quality and flavor of chocolates and other related products. As product lines are also similar and they are available at the same retail outlets, so competitive rivalry is considered strong among existing players (Mordor Intelligence, 2020; Wunsch, 2021). 

2.1.4. Threat of new entrants

The above graph shows the global market share of leading confectionery brands. According to statistical reports, the confectionery market is rapidly growing as the total market value of global confectionery is reported as 210.3 billion dollars in 2019, which is estimated to reach 270.5 billion dollars by 2027 (Hershey Kisses, 2020; Allied Market Research, 2020). Thus, it would be difficult for new businesses to enter into this highly competitive and crowded marketplace and capture market share because such well-established confectionery brands have already gained considerable brand recognition and built trust among customers, and they have an extensive distribution network. Furthermore, other barriers of entry in the form of high initial investment cost, strict foreign investment policies, and high cultural differences also indicate that threat of new entrants is low.

2.1.5. Threat of substitutes

Threat of substitutes is moderately high as there are the number of substitutes emerging in the market to substitute chocolate and other related confectionery products, such as- fruit bars, cereal bars, savoury snacks, non-chocolate snacks and frozen dairy products. Due to increasing health awareness, there is the likelihood that customers can move towards healthier alternative options/substitute products (Komiljonovna & Babadjanovich, 2019).     

2.2. SWOT analysis



  • Cadbury is the 2nd largest global confectionery brand after Mars-Wrigley.

  • It is a wholly-owned subsidiary of global confectionery and snack food giant-Mondelez International, which earns annual revenue of around $27 billion and gives strong backing to Cadbury. 

  • It is well-known for its best manufacturing processes and wide distribution network. It is present in major markets like China, United States, Australia, and India other than United Kingdom (home country).

  • It makes substantial investments on research and development activities due to which it offers a wide variety of chocolates with unique kinds of flavors. Cadbury Dairy Milk is one of its best-selling products.

  • Due to positioning of its products as ‘gifts’, it differentiates well from its rivals and earns major sales revenues particularly during festive seasons like Christmas, Valentines, and Easter season.

  • It is recognized as a socially responsible brand due to its ‘Cocoa Life’ program, which is aimed at growing opportunities to build a better future for cocoa farmers and their families.

  • It has limited product portfolio (chocolates, candy, gum, and beverages) than competitors like Nestle, who have broad and diversified product portfolio beyond confectionery and beverages (like food, snacks, etc.).

  • It has relatively less brand recognition in emerging markets as compared to its rivals.

  • In recent years, one of its famous brand ‘Cadbury Dairy Milk’ has recalled Little Robins chocolate packs due to incorrect packaging as some packs contained nuts that were not declared on label and therefore, an increased possible health risk for people with nut allergy. However, such recalls have raised fear among people that such products might have contained harmful bacteria, which, in turn, has badly affected brand’s image.



  • With increasing globalization and growing consumer incomes, it has an opportunity to develop an additional revenue stream by increasing marketing focus and strengthening its position in emerging markets.

  • By diversifying and expanding existing product line into other related food segments, it can maintain its competitiveness in the marketplace.

  • In present pandemic situation, health-consciousness has significantly risen among people, so being subsidiary of wealthy parent company, it can exploit opportunity to enhance research and development efforts to bring more unique healthy, natural, low-fat, sugar-free, and organic confectionery products.

  • With significantly increasing health-consciousness due to COVID-19, Cadbury can face risk of decline in demand as diffident health safety groups reported that processed food items like chocolates and sweets can directly lead to obesity, diabetes, and other health problems.

  • On-going competitive pressure from local as well as international confectionery brands can affect Cadbury’s dominant position in the market.

  • The increasing controversies (like worm controversy and multicolored unity bar criticism) and lawsuits (like purple trademark and phantom factory cases) can hamper the brand’s reputation.

Get instant access to this case solution for only $15

Get Instant Access to This Case Solution for Only $15

Standard Price


Save $10 on your purchase


Amount to Pay


Different Requirements? Order a Custom Solution

Calculate the Price

Approximately ~ 1 page(s)

Total Price


Get More Out of This

Our essay writing services are the best in the world. If you are in search of a professional essay writer, place your order on our website.

Essay Writing Service
whatsapp chat icon

Hi there !

We are here to help. Chat with us on WhatsApp for any queries.

close icon