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    Micro Environment

    The company trend of Hershey includes two aspects. First of all, China and India are two huge and unexploited markets, so are Malaysia, Indonesia and Thailand. In the future, it is very hopeful that Hershey will enter into those countries. Secondly, environmentally friendly products and packages are also another trend for Hershey. What Hershey can benefit covers decreasing industrial waste and recycling.
     
    Competitive advantages of Hershey can be concluded in the following aspects, longevity (the history of 110 years), international recognition and authentic chocolate. Main competitors of Hershey are Mars and Nestle. In Europe, Asia, Mexico and Japan, Mars has gained more market shares than Hershey by means of a huge number of marketing and advertising expenses, instead of product innovation. 25% of Nestle’s revenues and profits come from coffee (Marano, 2011). Nestle will give play to its advantages in international markets.
     

    Macro Environment

    The macro environment of a business includes several aspects, such as potential of entrants, rivalry, buyers’ power, retailers’ power, consumers’ power and suppliers’ power and so on. The section analyzes suppliers’ power and retailers’ power. First of all, the major material for the confectionery industry is sugar, cocoa, milk and nutmeat. Those agricultural commodities are less differentiated so it is less possible for those suppliers to be against confectioners. However, the price of sugar in U.S is subject to the Federal Agriculture and Improvement Reform Act of 1996. US confectioners have to pay 20 cents per pound of sugar while others in the rest of world only need to pay 5 cents (Marano, 2011). Secondly, consumers often buy chocolates in supermarkets, but the mass merchandisers’ purchase of the confectionery products increased during the past five years. In 1999, they gained 37% of the candy sales, which shows that customers are changing their purchasing decisions to retailers since they are more price-sensitive (Brenner, 1999). The bulk volume that retailers buy gives them more power to bargain with confectioners.