Complete 12 page APA formatted essay: The Real Chocolate company.Download file to see previous pages... The company strategically positions its retail stores in tourist environments, regional malls, a

Complete 12 page APA formatted essay: The Real Chocolate company.

The company strategically positions its retail stores in tourist environments, regional malls, airports and entertainment oriented sites where it mainly targets outgoing people. Apart from a choice of about 300 chocolates, the company also offers an assortment of other confectionary products. However, its major challenge it is facing is the growing competition from other chocolatiers in the industry.

Usually, unfavourable elements within a business environment often threaten its viability and can lead to failure in some cases hence require concerted efforts to counter them. In this particular case, competition from other rival competitors is the major threat to the Real Chocolate Company. According to statistics by the National Chocolate Association, gourmet chocolates in particular account for about 10% of the chocolate industry and there are about 15 competitors in the industry. The major competitors of Real Chocolate Company are Godiva chocolatier with annual sales of five million, Russell Stover as well as See's Candies with an annual sales of five million. Stiff competition can often lead to saturation of markets which would also negatively affect the sales as a result of monotony likely to be created as a result of lack of choice emanating from flooding of the markets. Only very innovative companies stand better chances of winning the hearts of their trusted customers in such a scenario which is regarded as a major threat to the operations of a company's business. If the situation is not properly managed, a company can be easily kicked out of business through the loss of customers to competitors.

The chocolate and confectionary industry must comply with numerous regulations that cover health, education, sanitary and franchise operations especially with regards to registration and privacy. Things such as labelling must comply with the Nutrition and Labelling Education Act of 1990. Whilst the laws are promulgated to protect the interests of the citizens, in some instances the provisions of some sections of the legislation may be a bit heavy especially on Small Scale Enterprises (SMEs) whose budgets may prohibit full compliance with some of the regulations. Such pieces of legislation often threaten the viability of small scale companies that are still trying to establish themselves in the market. For instance, the prescribed packaging for chocolates can be costly to companies still in their infancy hence it's a threat that needs to be given due consideration.

Unfavourable climatic conditions can also negatively affect the chocolate industry in many ways. For example, adverse climatic conditions in areas where the crop which provides the basic ingredient in chocolate production is grown, can lead to negative growth in the chocolate industry. The cocoa bean is the main fruit used hence an outbreak of a disease in the areas where it is produced would mean a slump in production of chocolate. The world is also face with unprecedented climatic changes brought about by global warming. In the event that extreme weather conditions occur, production of cocoa is also likely to be negatively affected which translate into a decline in chocolate production. Natural environmental conditions are uncontrollable in most cases and their effects should not be undermined.

Opportunities

The Real Chocolate Company is also exposed to certain opportunities which can lead to growth of business.