Kraft Foods SWOT Analysis
“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and
the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely
used technique through which managers create a quick overview of a company’s
strategic situation. The technique is based on the assumption that an effective strategy
derives from a sound “fit” between a firm’s internal resources (strengths and
weaknesses) and its external situation (opportunities and threats). A good fit maximizes
a firm’s strengths and opportunities and minimizes its weaknesses and threats.
Accurately applied, this simple assumption has powerful implications for the design of a
successful strategy.”
Kraft Foods
Kraft is a holding company engaged in the business of manufacturing and
marketing branded food and beverages. Kraft is the world's second-largest food
and beverage company with operations in over 150 countries worldwide. Strong
brand image with innovation gives Kraft's products a powerful brand recall and
enables the company to command a premium for its products. However,
increasing competition fuelled by industry consolidation could adversely affect
the company's revenues.
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Kraft Foods SWOT Analysis
Strengths, Weaknesses, Opportunities and Threats (SWOT)
Location of Factor
TYPE OF FACTOR
Favorable
Internal
Strengths
Unfavorable
Weaknesses
¾ Strong brand image
and product innovation
¾ Strong distribution
network
¾ Declined
profitability
¾ Geographic
concentration
¾ Focus on research and
development
External
Opportunities
Threats
¾ Restructuring
¾ Fierce competition
¾ Growing demand for
¾ Litigation risks
‘health and wellness’
products and services
¾ Growth in the US
coffee market
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¾ Falling US
consumer
confidence