Kraft Foods Inc Case Study
Weakness Market share Debt requirements Geographic concentration Some inefficient and ineffective employees External Opportunities Expansion In developing markets Explore Academy markets Repositioning Offer Organic Products Strategic Alliances Usage of Technology Redesigning the company’s offering and image to occupy a distinctive place in the minds of the target market are contractual relationships wherein both organizations remain independent while collaborating to develop a mutually-beneficial result within a specific scope outlined in the contractual agreement
Threats Increase in Commodity Cost Fierce competition Poor implementations on Academy division Changes in the consumer needs and preferences s 1 . World’s second largest food company 2. Strong brand equity 3. Focus on Innovation and Success 4.
Research and Development 5. Effective and Efficient product promotion 6. Affordability of products w 1. Market share 2. Debt requirements 3.
Geographic concentration 4. Some inefficient and ineffective employees o 1. Expansion in developing markets 2. Explore Academy markets 3. Repositioning 4.
Offer Organic Products 5.
Strategic Alliances 6. Usage of Technology 1. Increase in Commodity Cost 2. Fierce competition 3.
Poor implementations on Academy division 4. Changes in the consumer needs and preferences s-o SSL-03 – Reposition the firm as the premier food company SO-04 – Manufacture organic products through continuous innovation SO-06 – Learn how to use internet to harness customer input SO-06 – Increase budget for mass media w-o WI -03 – Cover wide geographic area WI-02 – Increase market share by acquiring other firms WWW-05 – Form buying alliance with other complementary firms
SO-TO – Effective advertisement among competitors SO-TO – Develop products through research and development SO-TO – Quality improvement, features improvement and style improvement subsequent to changes in preferences WI-TTL – Win large market share by applying the strategy of Overall Cost Leadership WWW-TO – Employment of new product managers WWW-TO – Widen the distribution area Alternative Courses of Action Alternative Courses of Action Increase Investors Ana penetrate new mar test acquiring complementary firms Lower production and distribution costs to lower price imparted to competitors and win large market share Widen distribution area and expand its reach in emerging markets by forming alliances with complementary firms Alliances Merger A merger refers to a process in which two companies become one by coming together. In such a case, no one company rules over the other. Usually the management of both companies shares the control of the resultant company and names of both companies are retained for the resulting companies. Acquisition Acquisitions on the other hand refer to processes in which one company buys the other company.
In such a situation the buying company absorbs the bought company into the existing company.
Acquisitions can be carried out either to eliminate competition by absorbing the competing company or to expand the corporate portfolio by retaining the acquired company as an independent entity under the overall corporate management. Alliance Alliance is an approach in which two or more companies agree to pool their resources together to form a combined force in the marketplace. Unlike a merger, an alliance does not involve the emergence of a new combined entity. Each participant in the alliance retains their individual entity but choose to compete against competitors as a unified business force. Joint venture is a very popular form of an alliance.