Business Strategy Essay

1320 Words6 Pages
Case Summary Nestle VS. Kelloggs The case was talking about 2 world largest food companies and its important strategic competing. On one hand is Swiss company Nestle, which searching how they develop strategy to attack the breakfast cereal market especially to attack Kelloggs. Kellogs is an American company and they are now a truly international company with modern factories launched its first breakfast cereals many years ago and went on to establish itself as the leading branded breakfast cereal company worldwide. They also have experienced marketing and selling subsidiaries in every part of the world with very good contacts with supermarkets and other food chain distributors of their products. Thinking of their strong brand name and good quality products that is an competitive advantage of Kelloggs which is very substantial indeed and it's going to be tough to make advance against such a company. For the purpose of the case, they focus on the European part of the world wide breakfast cereal market. Europe had an average market growth of breakfast cereal, for a company with the strategic purpose of growth in sales and profits, such as Nestle, breakfast cereals were much more likely to deliver its growth objectives. Although much of the European market was still at the beginner in strategic lifecycle terms, there were some clear market segments in the early 1990. There were three main parts to the market - staple products, healthy products and children's products. Kelloggs was both the market leader and was highly profitable, suggesting that the market was highly attractive. From a strategy perspective, all this raises important questions of how a company challenge the European market. All these considerations made Nestle very interested in breakfast cereals. The market was large, but clearly still had growth potential and good profitability but Kelloggs
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