The Major Issues Facing Campbell Soup Company

1099 Words5 Pages
The major issues facing Campbell Soup Company are stiff market competition, shifting consumer preference, leadership selection, and plummeting sales. Campbell Soup Company has been a staple of American culture for over 140 years. Known for its iconic red and white cans, Campbell’s product excellence, strategic partnerships, and continued performance have enabled it to become the world’s largest producer of soup. First, due to the fierce competition it faces from companies such as Nestle and General Mills, Campbell Soup has recorded a decrease in sales growth, losing market share in the packaged food industry for premium restaurant-quality readymade meals. Secondly, soup consumers are becoming more aware of product convenience, wellness, and premium quality. Thirdly, the company’s current CEO has questionable leadership background, where she has recently recorded poor sales results in her previous position. Finally, the company is experiencing reducing sales income as compared to its immediate market competitors. Business Model Campbell’s is renowned primarily for its soups and it has grown to be a leader in the packaged soups, sauces, and beverages industry recording over 8 billion dollars in annual sales, and has a presence in over 120 countries (Hitt, 2015). Its growth has allowed the company to develop and acquire brands such as Pepperidge Farm, Swanson, Pace, and Prego. Primarily, mass merchandisers, supermarkets, and convenience stores sell Campbell’s products. In 2015,
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