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SWOT-Analys of Wrigley Company

Strength:

- Well established brands (Juicy Fruit, Extra, Hubba Bubba, Double Mint, etc.)

- Global Infrastructure (Products in around 180 countries)

- Relationship with customers/consumers (Wal-mart supplier of the year for the third consecutive year and similar distinctions in Australia, Spain, and China)

- Competitive advantage. Wrigley is market leader in the chewing gum business. They have a very low cost per package of gum. For a company that creates a lot of cash flow that is an indicator of competitive advantage.

- Family Business. Business Week says "That comes as no surprise to American University's Ronald C. Anderson and Temple University's David M. Reeb, the professors whose research prompted our own. Their study, published in the June issue of The Journal of Finance, concluded that the performance of family companies in the S&P far outstripped that of non-family companies. To find out for ourselves how much family matters when it comes to corporate performance, BusinessWeek, with the help of Chicago executive-search firm Spencer Stuart, identified the family companies in the current S&P and tracked their performance over the past decade. By and large, we defined family companies as those in which the founders or their families maintain a presence in senior management, on the board, or as significant shareholders. For our group of family companies, the annual shareholder return averaged 15.6%, compared with 11.2% for nonfamily companies. Return on assets averaged 5.4% per year for the family group, vs. 4.1% for nonfamily companies. And the family outfits trumped the others on annual revenue growth, 23.4% to 10.8%, and income growth, 21.1% to 12.6%. So what is it that gives family companies their edge? In part, it's having managers with a passion for the enterprise that goes far beyond that of any hired executives, no matter how much they are paid."

(http://www.businessweek.com/print/magazine/content/03_45/b3857002.htm?mz)

Weakness

- Diversification. With the main focus (hur mеnga procent tuggummi?) on such a small market as the chewing gum market they take a certain risk. What if scientists come up with something like "chewing gum makes you lose your teeth" or "the Chewing Gum ingredients are cancerogenic"? But they are working on it for example with the Joyco-Group affair.

They also have products like "Extra Drops".

This products are fairly new in the "Extra Family?"

and it is a kind of candy/health tablet for your throat.

- Family

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