Kraft Questions Essay examples

The Kraft Company has been around for a long time now. Personally I believe you must have a protective firm, not allowing other companies to steal your ideas and product. This will give the firm advantage over others.

1. What is Costco’s business model? Is the company’s business model appealing? Why or why not?

This results from the fact that it is a mature segment with many well established companies vying for market share. The industry is highly consolidated and very fragmented. To grow their businesses, companies rely heavily on mergers and acquisitions to capture additional market share. Historically, the grocery industry has been characterized by slow growth which results in strong price competition and the development of aggressive marketing campaigns between existing firms. Perceived product quality and strong brand recognition by consumers are the basis of competition among firms in the industry. The source of General Mills’ competitive advantage lies in its ability to develop innovative products and highly reputable brands. As a result, they hold cost leadership positions across a number of grocery categories. Exhibit 1 shows the top US companies according to their sale of packaged foods globally. Market leaders include Kraft Foods, PepsiCo, Nestle, Mars, Kellogg, and General Mills, however, neither company possess an overwhelming share of global sales. This is in part due to the large degree of product diversity throughout the industry and the strong brand rivalry of each competitor’s labels.

Kraft Foods Group produces annual revenues of about $18 billion or more. CEO, John T. Cahillore ensures that “with the spirit of a startup and the soul of a powerhouse, we are on a mission to be the best food and beverage company in North America.” Kraft exists around that statement and every decision made for the business should reflect being a powerhouse in food and beverages. So far, this company’s strategies have made that statement true.

3. What are the main threats to Trader Joe’s competitive advantage? Is their advantage sustainable?

The business has been profitable and has been able to gain a large market share because of those strengths.

1. What is J. M. Smucker Company’s corporate strategy? What common strategy elements are shared across its brands? Did it make sense for Smucker to expand its business lineup beyond jams, jellies, and preserves? Why or why not?

The second force that I will use to analyze the Trader Joe’s company is the “the rivalry among established competitors”. Factors to consider when looking at the rivalries in the industry are industry demand, cost conditions, and exit barriers. Trader Joe’s competitors include The Kroger Co., Whole Foods Market, and Safewat Inc., and all super markets in general (Llopis, 2011). With that said, there seems to be a high demand for what Trader Joe’s offers, private labels. This means that the intensity in the industry is less compared to an industry with a flat demand. Trader Joe’s does not have to fight hard to sell their products because of the service they have created. Trader Joe’s brand can be considered “diversity on steroids” which has somewhat of a cult following among consumers (Llopis, 2011). Consumers that want unique experiences with their food are able to do exactly that at

1. How would you characterize the snack chip category and Frito-Lay’s competitive position in this category?

1. What is Panera Bread’s strategy? Which of the five generic competitive strategies discussed in Chapter 5 most closely fit the competitive approach that Panera Bread is taking? What type of competitive advantage is Panera Bread trying to achieve?

1. What is Panera Bread’s strategy? Which of the competitive strategies discussed in Chapter 1 most closely fit the competitive approach that Panera Bread is taking? What type of competitive advantage is Panera Bread trying to achieve?

3. Describe the competitive strategies used by each of Williams-Sonoma’s competitors. Which of these are most effective?

The case focuses on Kellogg’s Special K brand and considers how the marketing of this has changed over time. Marketing is not static – it must be developed as market conditions and customer expectations change.

Merger proves to be beneficial for both the companies as Heinz 61% sales from outside North America and on the other hand Kraft Foods sales is covered by 98% from North America for the revenues in the fiscal year 2014. This gives a big boost for the Kraft Food to enter and tap the international emerging markets for its strong growth also. As

The majority of the specialty food market grew between 2012 and 2014, with an overall growth of 19.2 percent. The specialty food industry has been the fastest growing segment of the overall food industry.