Kraft Foods Group External Environment Analysis Case Study

  • Length: 5 pages
  • Subject: Business
  • Type: Case Study
  • Paper: #34007951

Excerpt from Case Study :

External Environment Analysis: Kraft Foods Group

Kraft Foods, Inc., by means of its branches, creates and markets foodstuff that is packaged and drinks all over places such as the Middle East, Africa, Europe, and Asia. The corporation is able to supply its products to, supermarket chains, club stores, wholesalers, mass merchandisers, convenience stores, value stores, drug stores, distributors, and other retail outlets. In addition, they provide desserts, ready-to-eat cereals, garnishes and convenient foodstuff. Beginning in March 2011, Kraft Foods was operating in excess of 80 nations. It is also registered on the NY Stock Exchange with one of its most important achievements being that of Cadburys in 2012 for about $20.5 billion. With that said, food industry is an unceasingly on demand industry that individuals are always want and need. Some economists and analysts claim that food industry is one of the most proof to financial decrease. This makes this industry a strong, dependable and lucrative industry. The foods and products that are part of the flourishing industry consist of, sweets, biscuits, health products, animal foods, bakeries, kids foods, crackers, cakes, and vegetables. The extensive range of products offered offers ample of chances for business in this line, development and growth in line with the improvement of technology and new channel of selling.

Threat of New Entrants

With Kraft Foods Group, Inc. being such an assorted product there are few problems in the way for this extra-large-business to in order to get competitive advantage. Also, any kind of barriers to entry are doing the job of protecting the company for the reason that it is already an affluent company. On the whole, the threat of new entrants in the food business is considered to be quite low. The organization. has a marketplace share that totally controls any other participants. When the stock collapsed in 2008 and 2009, the organization did not even go below 6%. There is one possible threat that may possibly influence the food business, together with the company. Online grocery shopping is recognized as being this threat. The increasing quantity customers place on availability and accessibility has realized a strong online grocery industry. It is known that online grocery shopping is estimated to develop by 10% once a year. Kraft Foods Group, Inc. is on the trail to turn out to be a $9.4 billion dollar commerce by 2017. It is clear that online grocery shopping will be able to change customers buying behaviors; by making their vital request for products of food "value" in relations of both worth and supposed quality. Major food chains for instance Kraft Foods Group, Inc. control grocery stores that are all over the world. However, this is not saying that they will be able to control dominate online grocery shopping. Also, online grocery shopping could damagingly disturb the income of all major food chains as well as Kraft Foods Group, Inc.

Bargaining Power of Suppliers

It is clear that Kraft Foods Group, Inc. has been devoted when it comes to having a more and more different supplier core. This diversity validates the arrangement of their customers. The products and services of the dealers of Kraft Foods, Inc. are as different as their clients. The organization has a "supplier portfolio management procedure" that effects to aid in strengthening Kraft's domineering business objectives. To help with the growth of suppliers industry with the company they have put together "structured ideation" to fight supplier capacity that goes on with current business priorities and essentials. One supplier is Brakebush and they supply the company with ready-to-eat poultry / meat. The Gulf Trading and Refrigerating Co is another supplier huge supplier to the organization. The bargaining power of suppliers of the company is medium/high. This is for the reason that the U.S. drought in 2012-2013. This deficiency caused a big deal of loss of crops and animals. This type of disaster caused less supply for suppliers which ensued in much greater price demands.

Threat of Substitutes

There is continuously a threat of substitute products with any given professional business. However, that applies to Kraft Foods Group as well. On the other hand, the company is a brand loyal company by many customers all over the world.…

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