J.M. Smucker's Internal Analysis

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Internal Analysis & Vertical Integration J.M. Smucker was a leading company of manufacturing jams, jellies, and preserves in the early 21 century. It did not realize its weaknesses when the company started to feel the threat by other food industry giants. After anatomized the austere market situation, Smucker found out it was hard to compete with those giant retailers, because they had already started their acquisition early and already had much larger products diversities than Smucker’s. Therefore, the company determined its core developing strategy to retrieve its market position. The strategy is the Three-legged growth strategy, which includes organic sales growth of existing brands, new product introductions, and further strategic acquisitions that fit within the company’s vision. Along with the core strategy, Smucker’s strategic acquisition could be defined as its core competence. It was right for Smucker that only acquired those matured and leading brands in markets, which proved this strategy successfully brought Smucker great profit increasing from $36 million to $494million in a 10-year period. In addition, acquisitions of succeed brands also expanded Smucker’s product diversities and market shares. Those brands were already well known among customers, therefore, acquisitions like that helped Smucker increased corporation international exposure and also strength its barging power while compete with other companies. The distinctive competence of Smucker could be referred as its combinational operation of acquisition and new products development. Smucker always acquired after carefully selection. Except being leading companies, those brands acquired by Smucker also had close relation with its existing products. They have similar production raw materials, similar production processes, and also large demands in regional markets. Acquisitions after

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