General Mills And Nestle Case Study

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How can general mills and Nestle create international competitiveness by joining forces in CPW?
General Mills(GM) is a top global manufacturer. It becomes the second large manufacturer in North America.GM is a consumer of food products. It operates more than 30 global markets and export over 100 countries. They have 66 product facilities all over the world.GM has the ability to built vast brand names and keep continued net growth. They gained expertise of technological and marketing over 80 years in breakfast cereal market.GM is internationally active but they are well recognized and strong in their home market.In 2006 only 16% of total sales came from outside of USA.This shows heavy domestic dependence in cereal market is becomes a problem
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CPW can successfully balance the maintain international market as well as in US. Evaluate the international competitiveness of CPW compared to the Kellogg Company. Kellogg company is the first American company that makes breakfast foods and snacks to the international market established in 1906.Today Kellogg company manufacture in 17 countries and sells its products more than 180 countries. Kellogg Company was the leader of global breakfast cereal manufacturers in 2005. In twentieth century Kellogg company was the global market leader in ready-to-eat cereals.They had 30 per cent of the world market share for breakfast cereals. Kellogg’s three large overseas markets are Canada,Australia and United Kingdom. CPW has the lead of 20 per cent of the market share in 2005.It is not too far from the Kellogg company.The competitiveness between two companies,is not too far because in developing market CPW perform really well in China and Russia where Kellogg company unable to create a strong presence.
In Marketing and Services Kellogg company has been the market leader while CPW is the
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When we looked at the branding Strategy,CPW brand strategy extended Nestle brand. Kellogg company adopted stand-alone branding strategy.
In terms of pricing strategy CPW provide high quality products at a lower price than the Kellogg.And also the Kellogg company use a different strategy by taking the benefit of their loyal customers’ motivation to pay a premium.
CPW’s distribution strategy is a direct and Kellogg also look for it.

Suggest how CPW can create a blue ocean strategy.
In both of its emerging markets, CPW can form a blue ocean strategy. Developing core competencies and creating an international competitiveness for CPW will depend on two key strategies; first, to capitalize on existing core competencies of the company. Second, the development of new core competencies in areas that can be described as critical success factors. To take the advantage of the success of CPW in its penetration pricing strategy, the company should continue to optimize production costs and offer high quality products at lower prices. This should minimize the compromise between cost value and contributes to the creation of a new market space for CPW. General Mills and Nestle should incorporate more of their expertise and activities in

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