Strengths:

1. Market Leadership. Hershey is the first company to produce and sell a more affordable
milk chocolate. It is also the largest producer of chocolate in North America.
2. Increasing public image. Hershey established The Milton Hershey School for orphan
boys because of giving important of social and environmental responsibility
3. Commitment to social responsibility. Aside from the school they established, Hershey
Company is actively involved in the International Cocoa Initiative Foundation, World
Cocoa Foundation and get suppliers from those members in Roundtable on Sustainable
Oil.
4. Environment friendly. Hershey changed their packaging which resulted lighter materials
and less waste during production and they also recycle materials from their East Coast
factories. They also monitors greenhouse emission from operations and installed energyefficient lighting in all of their plans.
5. Diversified portfolio of brands. Hershey produces a variety of products that are
chocolate or candy based, and The Hershey Company also produces gum.
6. Commitment in research and development. Hershey investments on research and
development (R&D) to innovate their products. The Hershey Center for Health and
Nutrition, established in 2007, aimed to create products and technologies that are
beneficial to consumers.
7. Consumer-driven company. Hershey also develops products according to consumer
insights. Example: Hersheys Simple Pleasures chocolates were developed and launched
in 2012 as the result of a survey indicating the strong need in low-fat chocolates by a
significant number of women in the United States.
8. Strong reputation. Hershey has been in business for over 100 years and its products are
being sold and marketed in 70 countries around the world.
9. Innovative. Hershey was one of the first companies to engage in experimental marketing
through launching Hershey Chocolate World in 1973 in Hershey, Pennsylvania. They also
opened their first flagship store at New York Citys time Square and recently opened
Hershey Chocolate World in Shanghai.
10. Commitment to employees. Hershey has a theme park called Chocolate World and it
was designed to include housing, parks and schools for employees of Hershey Foods thus
motivates employees.
11. Health conscious products. Hershey produces dark chocolate products that offer various
advantages from health point of view. Also, they offer a line of natural and organic
chocolates under the Dagoba brand.
12. Emphasis on marketing. Even Hershey spend more money on advertising expenses, it
helps the company increased its sales.
Weaknesses:
1. Long-term debt. Hershey has more long-term debt than key competitors such as Nestle
and Cadbury. Its debt increased from $1,279,965 in 2007 to $1,505,954 in 2008.
2. Decline of assets. Hersheys other assets decreased to $151,561 in 2008 from $540,249
in 2007 which resulted to significant reduction in the fair value of the pension plan assets.

3. Domestic market dependent. About 86 percent of revenue derived from operations in

the United States.
Opportunities:
1. Holiday seasons. There are higher sales during holiday seasons especially during the
third and fourth quarter of the year.
2. Special edition products. They may have products themed with events, such as those
taken from movies.
3. Joint ventures. To expand its global presence Hershey Company may set up joint
ventures with established firms in the international market.
Threats:
1. Steady rise in prices of cocoa and sugar. Cocoa prices in 2008 ranged from $0.86 to
$1.50 per pound. And sugar which is controlled via government regulations may result
doubled price.
2. Competitors. Hersheys key competitors are Nestle, Cadbury and Mars.
3. Increase cost of manufacturing process. Almost all productions are done through
technology, and technology is always improving thus increases cost.
4. Steady increase of minimum wage of employees.
5. Natural disasters. It disrupt growth of chocolate ingredients.