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There are many external forces that can affect the operational strategies of chocolate producers. However, within these external forces, some forces have a rampant impact as compare to others. One of the most important external forces with promulgated impact on business and strategies is competition. These chocolate producers are operating in a very competitive environment where innovation is at acme. This competition is categorized with both local and global competitors like Kraft, Ferrero, Lindt etc. In order to maintain their market share, these competitors are coming up with innovation like the introduction of 70 new flavors within a year and copying of brand name and strategies. Because of this, each player in this field has to be on toes and keep an eye on competitor and be more innovative.

No of Words 2080

Questions Covered

1. Briefly discuss some (at least 2) general external environmental influences that affect chocolate producers.

2. Conduct a Porter's Five Forces Analysis of the chocolate producer industry in Austria. How has Zotter,s strategy helped change the balance of power (of the 5 Forces) in his favor? Explain.

3. Identify the key resources, capabilities, and core competencies of Zotter. How well do they meet the VRIO criteria?

4. Zotter is confronted with several decisions. One of them focuses on where and if to expand. Apply the CAGE framework (discussed in class and also posted in eLearning Learning Modules) to China and US. Based on your analysis make a recommendation on whether Zotter should expand to China or the US. What entry mode should be used and why?