Five_Forces_Model

In this case study, five forces model was used to give insights view of the potential profitability of a market and help it form its strategy accordingly. The first force is industry rivalry. There are a few large player in Canada complete with Roger‘s Chocolates in the premium chocolate segment. Their strength for these companies are packaging, quality, location and pricing. Each company has their own individual strategy to help them in the market. Rogers’ strategies are unique packaging, location of it retail store and quality of the chocolates. The second force, supplier bargaining power. In Rogers’ case, they have difficulties to forecast their demand due to the seasonality of sales. Therefore, switching to new supplier might not work. But long product shelf life and monthly sales forecast allowed Rogers’ to handle the production schedule. With the monthly forecast, Rogers’ can move towards forward vertical integration to ease the uncertainty supply of raw materials. The third force, customer and distributor bargaining power. Rogers’ sell their product thru company-owned stores, whole sailing, online and mail orders and Sam’s Deli, their own well known eatery in Victoria. Rogers’ emphasize on retail strategy. The stores are usually located in the tourist area. In their wholesale business ,is maintain by the sale rep in different countries and distribution in various area like, large retail chains, souvenir shops, tourist retails and corporate company. Rogers’ accept online, phone and mail orders in Canada and international. Free delivery will be provided if the transaction hit a minimum sum. The fourth force, substitutes product. Rogers’ brand has won a significant share in the premium chocolate industry. Price reduction was not the solution to help in maintain the brand. To win over the younger customer, Roger’ had to find ways to developed into younger image while maintaining its core image. Rogers’ can look into the organic industry or fair trade capabilities. The fifth force, new entrants. Beside those larger player mentions, some premium chocolate companies do come in the picture. They focus toward the extremely high end product and custom make order. These companies will not affect much in the premium chocolate industry. Base on the five force, customer and distributor bargaining power play a important role . It helps the company to build up their branding and allocate of customer share in the market. In Rogers’ further plan, they are trying to expand the distribution business to other country and penetration to other parts of Canada. The aim is to build up their names outside Canada.