Kraft Food Group’s Integrative Analysis

Introduction

Integrating SWOT elements with various strategies is a cardinal step in the analysis of both internal and external environments. Such integration should be based on the interplay between SWOT factors and other elements that influence the performance of the organization. Kraft Food Group operates in a very competitive and dynamic industry where the internal and external environmental forces greatly influence its success (Algasae, n.d.).This study, therefore, seeks to merge SWOT factors of the organization with the different strategies for proper analysis.

Integrative analysis of the various factors and strategies that affect the organization can be outlined as shown in the table below.

Low cost Differentiation Focus Preemptive
Strengths: Good competitive edge Cost leadership through competitive pricing. Offer unique products to consumers. Target the mass market due to the nature of the products. Target new markets that have not been exhausted by the rival firms.
Weaknesses: Operational issues Initiate cost-effective inventory management strategies. Provide high-quality products to outmatch its rivals in the market. Proper demand forecasting to reduce abrupt augmented levels of demand. Adopt efficient operational systems.
Opportunities: Favorable social-cultural environment Low cost of product development. Provide products that meet specific cultural requirements. Focus on particular market segments based on the elements of culture. Counter the strategies of the rivals in the market.
Threats: Competition Operate under economies of scale to reduce the cost of production. Operate in narrow market segments by offering unique products to the segments. Product diversification to expand the product line. Provide products that can substitute the products offered by the rival companies in the market.

Cost Leadership

The integrative analysis applied in this case has mainly focused on the strategic options that Kraft Food Group can employ at the business level. A strategy such as a cost leadership is a competitive tactic that is developed at the business level of the organization. The organization’s cost leadership approaches as indicated in the table entail competitive pricing of various grocery products to attract customers in the market. Low-cost product development is another strategy that will enable the organization to overcome its operational weaknesses. In this regard, the organization will reduce the cost of material acquisition and effective stock management strategies. The approach coincides with the opportunities in the environment that have been created by social and cultural factors. The factors present suitable marketing opportunities and chances to develop low-cost products due to cultural requirements. Moreover, cost leadership will also be obtained by operating under economies of scale. In this regard, the organization will produce more products at a low cost to achieve operational efficiency (Kim & Mauborgne, 2009).

Differentiation

Apart from cost leadership, differentiation strategy will also be used by the organization at the business level to enhance its performance. It will achieve differentiation by offering unique products with unique features to the customers. This may entail developing dairy or grocery products with unique ingredients that can be distinguished from major rivals such as Nestle. Offering high-quality products with superior performance will also enable the organization to achieve a differentiation strategy (Algasae, n.d.). The products will also be developed to satisfy the specific cultural requirements of various customers in the market. Moreover, the organization needs to target untapped market segments with new products. Kraft Food Group will also adopt effective branding approaches to provide high brand value to the customers (Liang, et al. 2009).

Focus

Integrative analysis of the company’s strategies also embraced the focus approaches that will be used by the organization to improve its performance in the market. The organization will diversify its product line to target the mass market. The market has different needs, which can only be met by offering a diversified product line. Demand forecasting is another approach that will help the business to sustain its focus strategy by reducing the augmented levels in demand. Additionally, cultural requirements will enable the organization to focus on particular market segments. The organization will offer unique products that will be targeted at particular cultural markets. In this case, social and cultural factors will be used to segment the market and focus on the requirements of each culture. The focus strategy of the organization will also entail targeting narrow market segments (Kim & Mauborgne, 2009).

Preemptive Strategies

Kraft Food Group will also employ preemptive approaches to outmatch its rivals in the market. The organization needs to target new markets with unique products in order to sustain its preemptive strategies. It can also invade the marketing territories of the competitors with the main aim of providing unparalleled customer advantages. For instance, it can offer high-quality products at a very low cost to increasing customers’ switching costs (Liang, et al. 2009). The organization can also adopt counter-strategies to respond to the competitors’ moves. Preemptive approaches will also entail adopting efficient systems of operation to reduce operational problems. The organization can devise new operational approaches that are efficient and cost-effective. Moreover, the company can counter rival strategies by offering substitute products. The approach will enable the organization to take advantage of the new marketing opportunities (Iansiti & Levien, 2004).

References

Algasae (n.d.) Promoting thought leadership…Customer focused low-cost strategy. Web.

Iansiti, M. & Levien, R. (2004). Strategy for small fish. Harvard Business School Working Knowledge. Web.

Kim, W. C. & Mauborgne, R. (2009), What is BOS? Nine key points of Blue Ocean Strategy. Web.

Liang, T., Czaplewski, A., Klein, G., & Jiang, J. (2009). Leveraging first-mover advantages in internet-based consumer services. Communications of the ACM, 52(6), 146-148.