Pest

Analyse How External Factors Affect Business

Cadburys PLC has a number of competitors, which they strive to surpass, by doing all in their power to make a greater profit and retain more customers than. Some of Cadburys direct competition in the market and currently they are:

* Nestlé

* Mars

* Thorntons

* Lindt

* The Hershey Company

* Ferrero

These organisations are known as having direct competition to Cadburys as they produce and sell similar products. They all produce chocolate related products.

The competition which Cadburys receives from these other businesses affects them in many different ways. Firstly their competition impels Cadburys to improve all the aspects of their business which will not only attract but retain customers. In an attempt to emerge successful above other organisations similar to theirs Cadburys utilises the resources to help distinguish themselves from the rest of the competition in a way which will be appealing to the public. There are many factors which make Cadburys goods and services competitive.

One competitive factor which Cadburys faces is the price at which they sell their products. The competition which Cadburys receives serves as an impediment from them increasing their prices at a large rate – there are others who make similar products to theirs, so if they were to ever to increase their prices, consumers would not be obliged to conform to their unfair prices. In addition, Cadburys suppliers also experience competition which restricts them from drastically increasing their prices which helps Cadburys as it means that they can continue to make a good income without having to change their prices to greatly in accordance to their supplier’s demands.

Another factor is reputation. In order to ensure that they continue to make profits from customers, Cadburys must ensure that their products are of a high standard. This then causes Cadburys to be known as a company which has good quality products which therefore...