Porter's 5 Forces and Pest Analyses of Kraft Foods

2079 words 9 pages

Porter’s 5 forces and PEST analyses of Kraft Foods.

MGT 599 Module 2 SLP

This paper will show the various analyses of Porter’s 5 Forces upon Kraft Foods as well as a PEST analysis of external factors influencing the company.
Porter’s 5 Forces are industry environments: 1. The threat of new entrants to the foods industry (low)
Online grocery shopping is proving to be a formidable threat. (Food Retailing Industry, 02/2/12) 2. The bargaining power of suppliers (medium to high)
Agriculture has been impoverished by the U. S. drought in 2011-12 causing enormous loss of crops and animals. This devastation has resulted in less supply and much
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Since Kraft sells mainly to large resellers, online suppliers may not offer their products. The strength of this article is that it concerns how the end consumer may be willing to change to private label or store brands to save time and money. It is useful in conducting an external evaluation because it focuses on how the consumer is changing grocery shopping and brand allegiances. Its weakness is that it concerns only the retail food industry. It does not address new manufacturing entrants to the food industry. The bargaining power of suppliers (medium to high) Lempert, P. Top Ten Food Trends December 21, 2012 http://www.factsfiguresfuture.com/issues/december-2012/top-ten-food-trends-2013.html. Phil Lempert, the supermarket guru, talks about the devastation that the United States drought in 2012 has caused in the food industry. There were enormous losses of both crops and animals. Because of this situation, suppliers have less supply and demand higher prices. Higher prices of groceries has forced the consumer to take note of how much food is being wasted and investing those grocery dollars in good snacks and healthy meals The author of this article, Phil Lembert, is an author, speaker, and food expert. His consumer panel of more than 100,000 opt-in participants contributes to his website. The strengths lie in the reliability of the author and his work. He addresses