Environmental Forces of the Chocolate Bar Essay

1006 WordsJun 26, 20125 Pages
Willie Crook American Intercontinental University Unit 1 Individual Project MKTG 205 – Principles of Marketing June 24, 2012 Abstract When identifying opportunities and threats of a product or service, companies must understand the marketing environment in which these products or services operate. Analyzing how these environmental forces will impact a product or service will help companies determine what strategies to use in order to overcome the threats and capitalize on the opportunities that may occur. Environmental Forces that affect the Chocolate Bar Introduction In the chocolate bar industry there are three environmental forces that have an impact on the chocolate bar, they are: competitive forces, economical forces, and societal forces. By analyzing these forces, we will get a better understanding of how to deal with these issues as they take place. Knowing what to do before a problem or issue occurs will help companies stay competitive and in control of their market share. This industry has utilized these three forces and has thus far remained successful [ (Perner PhD, 1999-2008) ]. Market Force 1: Competitive Forces and its Impact on the Chocolate Bar Competitors often threaten to take away markets from other companies or businesses. While this may be bad for businesses, it is good for the consumer. This can happen at many levels. At the brand level, companies may compete in providing a very similar chocolate bar to that of another. Mars and Hershey’s, for example, compete for the chocolate bar market. Each tries to provide the variety and flavor that the consumer desires. Companies also face competition at the product level. For example, Hershey’s chocolate competes with Trident gum, as the organization try to produce a variety of different products. At the budget level, different products can serve as substitutes for each other

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