Essay about Porter's 5 Forces and Pest Analyses of Kraft Foods

Decent Essays

Porter’s 5 forces and PEST analyses of Kraft Foods.

MGT 599 Module 2 SLP

This paper will show the various analyses of Porter’s 5 Forces upon Kraft Foods as well as a PEST analysis of external factors influencing the company.
Porter’s 5 Forces are industry environments: 1. The threat of new entrants to the foods industry (low)
Online grocery shopping is proving to be a formidable threat. (Food Retailing Industry, 02/2/12) 2. The bargaining power of suppliers (medium to high)
Agriculture has been impoverished by the U. S. drought in 2011-12 causing enormous loss of crops and animals. This devastation has resulted in less supply and much
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This has caused much negative public relations. The Cadbury debacle (Chellel, 5/23/11) also tarnished Kraft’s reputation. 2. Economic
Drought has caused raw products prices to rise. Unemployment has caused America’s middle class to shrink from 61% in 1971 to 51% in 2011 (Lempert, P 12/12) 3. Sociocultural
The demand for healthier foods and snacks will cause Kraft to examine methods to provide these. The change of packaging and marketing will be necessary (Lempert, P. 12/12). 4. Technical
The impact of social networks such as Facebook and Twitter can have devastating effects on Kraft’s reputation (Lempert, P. 12/12). Customers have access to apps that direct them to online grocery shopping and availability of similar products at lower prices.

Porter’s 5 forces and PEST analyses of Kraft Foods In this paper, I will examine the effect of Porter’s 5 forces upon Kraft Foods Industry. I will present sources to validate those effects and explain how those sources are relevant. I will also present a PEST analysis using the information gleaned from the previous sources. The references will be critiqued.
Porter’s 5 forces Threat of New Entrants (low) Food Retailing Industry: Market Research Reports, Statistics and Analysis This site reports new trends in the retail food industry. It brings the information down to the customer in the grocery store
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