Ferrero—the maker of Nutella—was first to the chocolate hazelnut spread market in 1964 and has dominated ever since . When Hershey’s released an identical spread earlier in January of this year, however, Quartz business news suggested that “it might not be long before Americans are spreading Hershey’s, not Nutella, on their toast”. Almost a year has passed, yet the gap between Nutella and any other chocolate spread remains unchanged.

How come?

In my class readings I learned that it is a mistake to challenge a clear leader of the market head-on in an effort to displace it—which is exactly what Hershey’s is doing. In a market where Ferrero’s Nutella has dominated for years, it is only natural that the chocolate hazelnut spread lover in all of us compares every new similar product to theirs. A second-place company offering a similar value proposition at a similar price has to work twice as hard to shift consumer opinion.

Nutella and Hershey’s Spreads are nearly identical products.

So what can Hershey’s do?

Instead of trying to displace Nutella, The Hershey Company should spend the same amount of effort claiming a new, unoccupied position. Perhaps they can produce a healthier alternative and market their spread as the healthiest chocolate hazelnut spread.

Until Hershey’s claims a new position or repositions Ferrero’s Nutella they are simply wasting their time.

Check out a super official review I found on youtube: 

Image Sources: “USA: in arrivo l’anti nutella”

Youtube Video: https://www.youtube.com/watch?v=h6xWdL-ZsKA

Before Enbridge began work on a pipeline in the Livingston County of Michigan two years ago, the Calgary based energy delivery giant promised residents that it would leave their properties in better condition than [it] found them. However, minimal time and money were spent on restoration. Many locals have recently begun raising concerns about the company’s lack of consideration for business ethics.

Enbridge has faced criticism from activists and environmental groups in the past.

According to Milton Friedman’s stance in “The Social Responsibility of Business is to Increase its Profits” Enbridge carried out its social responsibility by maximizing profit and minimizing cost for its shareholders. Meanwhile, granted the Stakeholder Theory, the company will suffer as it did not act in the interest of a major stakeholder—the local community.

Which one is right?

In my opinion Friedman’s argument is outdated. In the information age, corporations cannot neglect business ethics without someone taking notice. While Enbridge’s practices were legal, they were socially irresponsible and unethical. Considering the backlash their Northern Gateway Pipelines Project has received from British Columbia, this recent happening will only add to the criticism they face. Their disregard for corporate ethics in Michigan will become a weakness for environmental groups and First Nations of British Columbia to exploit as the Northern Gateway is delayed for a few more years.

Image Sources: “The Solution – Putting the Brakes on Canada’s Tar Sands”