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The intensity of rivalries will negatively influence Kraft. This can lead to price wars and similar merchandise geared towards their customer base. ("Kraft Foods," 2013) (Nestle, 2007) (David, 2009)
Evaluate the organization's Intensive Strategy, in the areas of Market Penetration, Market Development and Product Development.
Market penetration is when a Kraft is focusing on increasing its market share for products through improving its advertising. This is occurring with the firm sponsoring different events that highlight the merchandise they are selling. At the same time, they have specific commercials and newspaper / radio / online advertisements that will enhance their image of specific brands. Market development is when Kraft is introducing new products to emerging economies. This is occurring with company focusing their efforts in China, India, Brazil and Russia. Product development is where the firm will modify various types of merchandise. This is taking place with the company understanding changes in customer demand and responding to them by introducing new lines and brand names. ("Kraft Foods," 2013) (Nestle, 2007) (David, 2009)
Construct a SWOT analysis for the organization.
The strengths, weaknesses, opportunities and threats will impact Kraft's competitive position. In the case of strengths, the company has a large number of brands and they are the leader in the marketplace. The weaknesses are that the firm is adversely impacted by changes...
The opportunities for Kraft are their ability to reach out to large segments of people and rapidly expand into new markets. The biggest threats facing Kraft are from sharp increases in raw material costs, the introduction of competing products and sudden changes in consumer tastes. ("Kraft Foods," 2013) (Nestle, 2007) (David, 2009)
Review your research and based on your conclusions, what corporate strategy would you recommend for the next five years of operations?
The primary strategy that Kraft should use in the next five years is to concentrate on ways to reduce their raw material costs. At the same time, they need to be shifting with changing tastes as customers will demand alternatives. They also need to focus on reaching out to customers in emerging markets and establishing their brand name in these areas. If this can happen, the company will be more competitive and can quickly adapt to shifts in the marketplace.
References
Kraft Foods. (2013). Yahoo Finance. Retrieved from: http://finance.yahoo.com/q?s=KRFT&ql=0
Kraft Foods Mission Statement. (2011). Kraft Blogger. Retrieved from: http://kraftblogr.blogspot.com/2011/09/kraft-foods-mission-statement.html
David, F.R. (2009). Strategic management concepts. Upper Saddle River, NJ: Prentice Hall.
Nestle, M. (2007). Food Politics. Berkley, CA: University of California Press.
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