Strategic Choices
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Low cost
Differentiation
Preemptive
Strengths: Outbound logistics
The company should improve their distribution method to make it more cost effective thus allowing them to cut distribution costs and these savings can be passed on to the consumers. As posited by Alagse (2012)
, the best strategy for Kraft foods would be to become the lowest cost supplier of their products rather than the lowest cost producer. This would enable the company to translate their cost advantage into price advantage for their consumers enabling them to improve their market share.
The company should ensure availability of their products in order to enjoy prolonged sustainability as a result of ease of access of their innovative products to the consumers thus increasing brand loyalty. The company will also be able to create unique value for their products as a result of their ready availability in the market thus increasing the appeal of the product greatly Jemmeson, 1997()
The company should improve their outbound logistics in order to attempt to tap into market segments which have not been targeted by competitors thus allowing the company to focus on a specific market niche. This will enable the company to increase their consumer base through offering preferential access to their products to these new market segments.
Kraft foods should position their products uniquely by improving their distribution channels to ensure they reach as many consumers as possible in order to establish a dominant position in the...
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