Hershey Blocks Cadbury Imports
US consumers can no longer
purchase imported Cadbury chocolates, and the “loyalists” of the brand are
upset. In the article, “How Cadbury lost the right to sell its own chocolate inthe US,” we learn that, to protect its products,
Hershey forced a ban on imported UK confectionary. Consumers
quoted in the article “Hershey’s lawsuit sparks British revolt for ‘superior’Cadbury chocolate,” believe the company only pushed the lawsuit because it couldn’t compete with
the imported sweets. While
this group of consumers is dismayed by the ban, author Bill Saporito reminds us
in the article “Quit Whining,Brits! Hershey Had Every Right to Block ‘Real’ Cadbury Bars,” that “Hershey owns the
rights to manufacture Cadbury’s products in the U.S.” Whereas Hershey
competes in an oligopolistic industry, company decision makers may have
believed that the ban would lead to an increase in market share for their
products. However, the “loyalists” to the imported goods do not view Hershey’s
Cadbury products as substitutes. Imported Cadbury is to the chocolate industry
as Apple is to the technology industry, so an increase in market share for
Hershey’s products is not likely. The “loyalists” to the imported Cadbury brand
didn’t think much of the Hershey company to begin with, but now there is a
tangible dislike that could lead to a boycott of the company’s products. How do
you think the ban will affect the Hershey company?
2 comments:
Lyn: 50/50
This is really a very odd case: two firms agree on a reasonable contract that benefits them both, and then later on potential consumers become upset at just one of the firms. I bet management is probably stunned that this happened to them.
Personally, I think I can understand the customers' position, and I think that might have been easily anticipated as their dominant strategy. With that as the end game, I have a hard time backing up one level of their extensive-form game to justify why management chose this course. Seems like a blunder to me.
Oops. This is a post not a comment. Lyn's grade should be 100/100.
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