Generic Strategy Fit

From the Five Generic Competitive Strategies outlined in our text, I think Hershey follows a focused low-cost provider strategy. 

Strategic Target:  They compete in a narrow market niche. (mostly candy and some other food products)

Basis of Competitive Advantage: There is constant competition to have a low cost product.  In this market niche, competitors will quickly meet/beat low prices.  So on this aspect, they don't quite fit.

Product line:  The features and attributes of their products are tailored to the tastes and requirements of the niche members. (e.g. dark chocolate when buyers became more health conscious)

Production emphasis: They are continuously searching for ways to reduce costs while putting out new innovative products matched to niche member preferences.  My post from 8/31/10 talks a bit about how they are evolving their processes to reduce costs.

Marketing emphasis:  Marketing efforts point out the features that satisfy targeted consumers wants/needs while remaining budget friendly. (e.g. in store displays of buy 2 for $1)  Because of the competitive pricing in the niche, more emphasis is placed on the product features in marketing than on the price.

Keys to sustaining strategy:  Hershey demonstrates that they are committed to serving the niche at the lowest costs they can.  They also do not demonstrate any attempt to enter into other market segments and seem to be concentrating on increasing their competitive position in the candy/food product industry.