Resource Based Analysis (RBV) is a combination of the analysis of the internal resources of a company with its competitive environment (Collis et al. 36). RBV analysis for will enable Kraft foods to identify its strategic resources and gauge its competitive ability in relation to other companies in the market. Kraft Foods Company is a multinational food company specializing in the selling of snack, groceries, beverages and other popular food items. The company’s food brands are popular in the American market and other countries all over America. An RBV analysis of Kraft Company will highlight its resource and organizational capabilities that give it strategic advantage.
The tangible resources that give Kraft foods a competitive edge over other companies are diverse. Kraft Food’s capital base is widely spread. Kraft Foods has branches in over seventy countries all over the world. It has managed to form mergers as well as acquire leading food and snack companies making it the largest food company in America. The company has branches in over 170 countries all over the world with millions of brands of products. The most recent is the acquisition of Cadbury PLC, a UK-based snack company. This large market spread reduces business risk while simultaneously strengthening its industry presence compared to its competitors. The acquisitions and globalization make it the second largest food company in the world.
In 2010, Kraft purchased Cadbury for approximately $18.5 billion. The North American branch, Kraft foods is currently valued at $ 19 billion while the global branch Mondelez is valued at $36 billion in terms of annual revenue. The high financial presence gives Kraft foods and its international subsidiary an edge over their competitors in the food industry. It also enables the company to fund research on new and better practices. With this large capital spread the company now trades on the NASDAQ and can expand business into other lines such as the recently frozen foods business.
In the United States and Canada alone, the Kraft food group employs about 25,000 workers (“Corporate Information” 2013). The company aspires to provide a safe workplace for its workers while at the same time, ensuring they are motivated and committed to the company’s goals. Among its top management Kraft has the most experienced and brilliant minds in the food and snack industry. The CEO of Kraft Foods Group, W. Anthony Vernon has worked for the company since October 2012. Vernon has previously held senior positions in companies such as Ripplewood Holdings, Johnson and Johnson-Merck joint venture and McNeil Consumer products. His vast expertise in consumer products enables him to give the company a strategic edge over its competitors.
Kraft Foods employees are skilled in their work. The 25,000 employees were chosen to work for the company because of their proficiency in their different lines of profession. The company carries out annual market research that enables it to have a firm understanding of customer needs (Magwood 2011). The staff, therefore, has perfect knowledge on the basics of customer service. The organization has collaborated with consultants in order to develop a customer oriented service delivery platform.
Kraft Foods has developed product brands that have gained popularity all over the world. It has patented most of its popular brands and has a series of unique products aimed for different market segments. Planters Nuts, for example, is a favorite nut brand in North America and is increasingly popular among customers of packed nuts. There are ten popular brands in the North American branch of the conglomerate. These brands earn the company approximately $500 million revenue in sales. All these products are registered trademarks, and some are used under license from other companies. These patented flavors such as Cadbury and Jacobs have been tremendously instrumental in ensuring greater market potential for the company.
Kraft Foods enjoys a lot of goodwill among North American customers especially in Canada, Puerto Rico and the USA. It has been a reliable and trustworthy company in terms of safety and quality. Its products, designed to appeal to specific customer and market needs, have carved their own specific niches in the market. Kraft also enjoys a lot of professional goodwill, its customer service and uniquely designed products such as the frozen goods endear customers to its brands.
Cultural Identity and Strategic Alliances
Kraft Foods’ parent company originated from Illinois, USA. Many of Kraft foods’ customers, therefore, identify with the company since it has maintained its rich tradition over the years. In recent years, Kraft bought into UK-based Cadbury PLC one of the largest food organizations globally. This acquisition expanded Kraft’s market and increased its reputation in the international market. Another significant strategic move was the division of the company into an international branch and a North American branch. This move ensured that market segments receive specific attention.
The Kraft logo is red and blue, and it appears on every Kraft product being. The red and blue logo was the traditional Kraft emblem since its inception. All its branches are unique in design with the company logo upfront. The distinctive features of the company branches, the red and blue colors and the company logo make them unique and easily noticeable.
Kraft Foods’ position as one of the best snacks and grocery companies is undisputed. It has maintained its position as one of the most innovative companies. Kraft Foods’ is recognized for its quality and sustainability measures in the food industry. Kraft Foods has established itself as the best company in the region. It is thus a member of the Dow Jones and Ethibel sustainability indices. The company has international popularity with more than half of its revenue coming from outside the borders of continental North America. Its presence in 170 countries worldwide and its numerous brands marketed worldwide are a sign of the great reputation the company has cultivated in its customers. Its international might has enabled the company to trade on NASDAQ. Its reputation has made it a redoubtable competitor in the foods market.
Innovation is one of the company’s key technical abilities. The company has always endeavored to produce products that are sustainable and of high quality. Kraft Foods, through its innovative segment, collaborates with suppliers to produce the peel and seal packages, which are environment ally friendly and easy to dispose (“Corporate Information”2013). Kraft Foods has an active research and development segment that aims at providing the company with new and easier ways of production. The R & D centers enable the company to improve on food safety and nutritional knowledge. The company has put many resources in its efforts to reduce energy use, carbon dioxide emissions and factory waste in its production processes.
Harvard Business Review (Cambridge Mass.). (1999). Harvard Business Review on corporate strategy. Boston Mass: Harvard Business School Press.
“Corporate Information”. (2013). Kraft Foods Group. Retrieved from http://www.kraftfoodsgroup.com/home/index.aspx
Magwood, J. D. (2011, June 27). Kraft Foods Inc.-Marketing and Managing the Customer Relationship. Retrieved from http://www.customerthink.com/article/kraft_foods_marketing_and_managing_customer_relationship