The food industry is expected to grow rapidly in the future due to improving lifestyle and rapid urbanization (“Global Fast Food Market”, 2017). With this potential demand created, KHC can easily capitalize the growing foodservice industry and tailor their products to the specific demographic (Bhasin, 2018). Another strong resource KHC can utilize is focusing on nutritious products. As the foodservice industry continues to grow, KHC should further explore on expanding its product portfolio to include healthier options. Natural and organic brands, as well, as small labels buying from local farms, have become an essential part of the consumer lifestyle (Tarkan, 2015).
Kraft Foods can be described as a hero in the area of fighting hunger. Kraft Foods and their employees have made a commitment to sustaining Health and Wellness through Nutrition U.S. Chamber of Commerce (2011) advises that since 2005, Kraft has Foods has reformulated or launched more than 5,500 products which meet the goals listed below. • Reduced fat, sodium, sugar and/or calories • Added more beneficial ingredients, such as whole grains, fiber, healthier oils and micronutrients • Made products “simpler,” with easier-to-understand ingredient lines and fewer artificial ingredients To further demonstrate its pledge to be a champion in wellness through nutrition, U.S. Chamber of Commerce (2011), informs that Kraft Foods is a founding member of the Healthy Weight Commitment Foundation which is aimed at reducing obesity in the U.S., especially among children. The heroes within Kraft Foods are its thousands of employees. Kraft Foods corporate website (2015) shares that they have a special team of more than 100 employees across North America called “Community Champions”.
Continuous increase in the saturation and competition in the UK food industry seems to be an opportunity for Campbell. The food chain can turn this competition into opportunity through innovative food items and quality service. The current economic crisis in the world market makes the British food products affordable for EU and other markets (Thomas,
The main basis for competitive advantage is governance. The bottled water industry has excellent distribution chain operations with equipment specific to the industry. Industry competitors compete through market presence, with an oligopoly controlling the majority of the market through persistent acquisitions. This type of operational context is called ordinary economizing and includes well established competitors and customers (Porter, 1980). Key Factors for Survival & Key Success Factors There are a host of key factors for survival.
Kraft food is one of the largest company in United States and second largest in world. ‘’MISSION’’ , "Our aim is to be North America 's best food and beverage company, and we 'll get there by continuing to offer products consumers love, creating a performance-based culture that motivates and excites employees and becoming the best investment in the industry. ‘’VISION’’ is Helping people around the world eat and live better, offering the best brands, best products and best quality. Proposed mission Kraft 's mission is to provide tasty and healthy food for people all over the world to enjoy. To provide excellence products full with innovation, quality, safety, respect, integrity, and openness, in order to strive as a company to communicate with the world reassuring them they 're a trusted company with their products.
The food industry has throughout history been subject to government regulations at national and local levels, which aim to protect the public health and safety of food, regulate trade unions and prevent mislabeling with regard to formulation and content. Governmental organizations have controlled product entry, the way food has been marketed to consumers and the manufacturing practices of food. The most enduring problem in the food industry has been the case of adulteration, which refers to the cheapening of products by adding impure and substandard ingredients. This has posed a threat of unsafe food in the market and a health risk to consumers. Regulations have therefore been necessary to protect consumers from low quality and harmful products.
To respond to these trends Kellogg’s has adopted a cost reduction plan and launched a healthier cereal brand geared towards adults named Special K. Concerning addressing shifting consumer preferences, Kellogg’s has not been as successful as they expected (2017 Annual Report). In 2017 Kellogg’s 10 K reports, Kellogg’s admits not being able to anticipate consumer trends was one of their top concern for future earnings. The last successful launch happened in 2003 after featuring Special K Red Berries brand, but the sales have not kept increasing after 15 years (Fitzgerald). In 2013, US Morning Foods tried to increase brand recognition by issuing a “Special K Challenge”, which was a diet plan that included eating Special K products for a period. This challenge was negatively criticized by professional dietitians as lacking the needed fiber and other vitamins (Roberts).
The balance of advantage lies with the multinational food companies as they usually own several established and well-known brands, furthermore they have the resources necessary for product development and marketing of functional food (Menrad, 2003). It should be mentioned that not only food manufacturers, but also the pharmaceutical industry has become interested in this field. In consequence of this has led to the so-called grey area which describes the overlapping of the interests of food and pharmaceutical industries (Farr, 1997; Kotilainen et al., 2006; Mark-Herbert, 2004). Therefore, functional food is cover broad range of the food