Danone’s as a global food company which operates in 140 countries around the world mostly in Europe. Danone’s strategy is designed to differentiate its products from the competitors. The strategy based on differentiation is to create a good perceived as a premium by the customer, to create loyalty to the brand and therefore low price sensitivity. It does want to do that through quality and real taste of its products. According to Grant, R.M (2013), “strategy is the means by which individuals or organizations achieve their objectives”. One of Danone’s distinctive features of strategy was international expansion (geographic strategy) in which Danone’s also has a major success in penetrating new markets like Russia but they also have some failures in China. They have lot of products at first so in 1996, Franck Riboud took a new strategy to divest and refocus on only four products which were Fresh dairy products, Water, Baby Foods and Medical Nutrition which helps them to shift towards the international expansion into the emerging markets. They reduced the product range from so many to four so that they focus on those products with more quality and control. They focused on doing what they were good at so they don’t get distracted.
One of Danone’s strategies was different management style which we can say as an emergent strategy which can also be said as a realized strategy. Danone’s CEO Franck Riboud set a consistent strategic direction on the group which was acquisitions of 37 companies during 2000 and 2010; it also divested 34 companies in which it divested its entire biscuit company. Danone’s benefitted from joint ventures which allows it to access local knowledge and distribution capability which economize its management achievi...
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...” Porters’ analysis is useful when trying to understand the competitive environment facing an industry. As outlined in case study also due to consolidation in the industry especially in dairy products and with so many companies investing in the field of medical nutrition, bargaining power of giant retailers was likely to increase competitive pressure so to attain competitive advantage was critical to achieve. Porter’s five forces of competition include three horizontal forces and two vertical forces which are shown below in the diagram:
With the help of porters five forces factors we can analyze the varying profitability of the food and beverage industry between 1973 and 2012 in terms of Porter’s five factors and sub factors.
Reference:
• Grant, R. M. (2013) Contemporary Strategy Analysis – Text and Cases (8th Ed.) Publisher: John Wiley & Sons, Ltd
Del Rio was established in 1933, and it is located in California. Its owners are Bob and Maria. Del Rio is an agricultural business where processed canned products and fresh produce are sold. Both owners have the same agricultural background which is why they are doing this business. They are running Del Rio successfully. When the world was going through a great depression, many businesses had tough time to survive. However, Del Rio Foods, Inc. was in stable condition even though they did not make a lot of money. From 1987 to 1990, their Income Statement shows that they had a steady increase in their net income each year. The CEO’s objective is to expand his business as far as into east coast. Del Rio acquired a couple of farms and built them as its main facility and a distributor. Joint venture was formed with few wholesalers and retail stores. Additionally, Cape Fear and Wilmington plants were bought to increase productivity. The mission statement, SWOT analysis, and action plan are discussed further.
With the introduction of synthetic diamonds and changing of government regulation DeBeers was loosing it control. DeBeers who had controlled the diamond market for nearly One Hundred. The case study review will looks at how DeBeers used key strategic tools to put new life into the company and develop it into been the worlds biggest and best once again. To examine how DeBeers changed the article must be examined using some key strategic tools these will include Porters 5 Forces, The Four P’s of marketing and PESTEL.
Business strategy is the means by which firm’s plans to achieve its goals and objectives. It can also be termed as organization long-term planning. The strategy covers periods between 3-5 years and sometimes longer. Businesses use two major types of strategy, general or generic and competitive strategies. The overall strategy involves strategies of growth, globalization and retrenchment. The competitive advantage includes low pricing, product and customer differentiation. We will look at the business strategy used by Marks and Spenser (Cole, 1997). The company is a British multinational located at Westminster London and specializes in clothes and luxurious food products.
Thompson, Arthur, John Gamble, John Gamble, A. III, and Alonzo Strickland. Strategy. McGraw-Hill/Irwin, 2005. 299. Print.
The Boston matrix can be tailored to Benetton to demonstrate how Market share can be gained by investment in marketing, Market share gains will always generate cash surpluses in the company, Cash surpluses will be generated when the product is in the maturity stage of the life cycle, The best opportunity to build a dominant market position is during the growth phase. The 4 categorise can could help Benetton be more successful in creating a better market share and growth.
BR was sold to Delta Foods in 1996 for US $2 billion. At this time, it was one of the largest fast-food chains in the world generating sales of US $6.8 billion. DF purchase of BR brought in a new cultural paradigm. DF is an individualistic, aggressive growth company with brands they believe are strong enough to support entry into new overseas markets without the need for local partnership. The DF strategy is one of direct acquisition and JV’s were not part of their strong suit. DF strategic implementation is based on hiring local managers directly or transferring seasoned managers from their soft drink and snack food divisions. The DF disdain for JVs is clearly reflected by their participation in only those JVs where local partnering was mandatory (e.g. China) to overcome regulatory barriers to entry. JVs had been the predominant strategy for BR which was unlike the DF outlook. Terralumen’s strategy was misaligned and out of sync with the DF strategy. This was unlike the complementarity that existed with BR’s strategy. This misalignment began to affect the JV relationship that had worked well with BR in the initial years. The failure of Terralumen and DF to recognize this fundamental cultural difference between their operational strategy styles i.e. Individualistic and Collectivism leads to their inability to proactively create steps for better alignment in the early period after acquisition, creating uncertainties and difficulties for both corporations. There is a lack of communication and virtually absence of trust between two new partners. DF appeared to be flexing its muscles in the relationship and using a more masculine approach compared to Terralumen’s more feminine approach. Both the corporations are strategically involved in a complex situation where they appear reluctant to address the issues at stake and move ahead together. The DF strategy of
A Porter analysis examines five different forces that affect the success of a particular industry. This analysis is then used to establish if a certain industry is attractive to potential shareholders and investors. The following will elaborate on the power of suppliers and the power of buyers in the "family restaurant" industry; including restaurants such as: Boston Pizza, East Side Mario's, and etcetera. The different strengths and weaknesses of these forces depend on many different factors that will also be summarized. Finally the overall influence of each force on this industry will be specified to give a greater understanding of the strength of this industry in relation to its suppliers and buyers.
The aim of this report is to present and critically estimate the market strategies of an international and a local chocolate manufacturer in Austria. The analysis is carried out in three stages – macro-environment (PEST analysis), micro-environment (Porter’s Five Forces Model) and company comparison (SWOT analysis). In the end, recommendations are given for the local brand Wiener Schokolade König.
The Porter five forces model (see Appendix 1) as an external analysis tool was established by Michael E. Porter and firstly announced in his book “Competitive Strategy: Techniques for Analyzing Industries and Competitors” in 1980 . The main idea of the Porter five forces concept is that the attractiveness of a market depends on the characteristic of the five competitive forces that have an impact on a company (see Appendix 2).
Companies all over the world varies but yet shares a common challenge, that is to solve problem not only effectively and efficiently but also creatively. The P-O-L-C framework which stands for Planning, Organising, Leading and Controlling plays a major role in both the company’s survivability and success. The SWOT analysis looks at both internal and external factors that can affect the Starbucks’s performance. The purpose of this report is to define and analyse how Starbucks respond and should have respond to the change of its external environment on the cofee market,This report will also identify and disscuss how The P-O-L-C framework and can help starbucks to compete and reduce the loss of their failing peformance in the Australian market and how SWOT analysis helps to define some externalities that can be a threat to Starbucks.
The case looks at prescriptive strategy as applied to multi-product group of companies. Unilever is based in over a hundred countries where multiple products are being made in each. However, the market is mature which means that growth is stagnant and innovation is almost non-existent. In order to improve on growth and sales, the strategies that are needed look at how to come up with new products that have high profit margins and penetrate new markets. The prescriptive approach was used to come with a strategy to improve growth and profit. In order to improve on innovation, both the prescriptive and emergent strategies can be used since both support innovation. From the case study, not much profit was made when the ‘Path to Growth’ strategy was first implemented (2001-2004). The strategy was initially based on cost cutting. There was a need to also build volumes through existing portfolio of branded products through innovation and marketing. By focusing on increasing sales in developing countries where growth prospects were high and increasing investment in personal care products where profit margins were higher, it was possible to improve the profit portfolio.
Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard business review, 25-40.
Grant, R. M. (2010). Contempemporary Strategy Analysis (7th ed.). West Sussex, UK: John Wiley & Sons, Ltd.
Porter’s five forces is a framework for analyzing an industry and business strategy development. It looks at forces that determine the competitive intensity of an industry and hence the overall attractiveness of that industry. The configuration of the five forces differs by industry. Understanding the competitive forces and their underlying causes reveals the roots of an industry’s current profitability while providing a framework for anticipating and influencing competition over time.
Bibliography: Lawson, A. (2013). Analysis: Is Asda’s five-year strategy the right one?. [Online] Retail-week.com. Available at: http://www.retail-week.com/sectors/food/analysis-is-asdas-five-year-strategy-the-right-one/5054989.article [Accessed 23 Jan.