Strategic Process Management – Nabisco

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Strategic Process Management – Nabisco

1) Introduction
Nabisco is 1 of Kraft’s billion-dollar brands which is dated back to as far as more than a century since 1898 when the United States Baking Company, the New York Biscuit Company and the American Biscuit & Manufacturing Company formed to become the National Biscuit Company. “Nabisco” first appeared on a new sugar wafer product in 1901, but the corporate name did not change from National Biscuit Company to Nabisco, Inc. until 1971. Kraft Food acquired the Nabisco business in December 2000. Today, Nabisco’s brands include some of the best-known cookies and crackers in the world, including Oreo, Chips Ahoy! and Ritz.
Nabisco’s existence over such long history in the food industry also
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For instance, they have created a new product called “Snack-Well” which the reduced-fats products have successfully retains its tastiness. This has expanded its product range and created a healthy awareness.

* Threat i) Duplication of DSD
Nabisco’s breakthrough of DSD was a big success that its industry competitors have duplicated/implemented the direct to customer model with varying degree of successes too. It may not be a competitive advantage in the near future. In additional, low cost competitors can easily copy Nabisco’s strategies especially those located in the developing countries. ii) Hygiene Monitoring
Besides having a quick, fast moving of products to the consumers, it is vital to ensure that hygiene are closely monitoring throughout the pipeline. One mistake can be fatal to the survival of Nabisco.

ii) Porter’s Five Forces
This framework draws upon Industrial Organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Attractiveness in this context refers to the overall industry profitability. An "unattractive" industry is one in which the combination of these five forces acts to drive down overall profitability. A business analysis that is critical for the company’s plan in going forward.

Figure 3.4: Porter’s Five Forces Analysis

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