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Case Analysis: Case Study: Kraft Heinz Company

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Kraft Heinz Case Study
Executive Summary

Problem Statement
The focal problem that Kraft Heinz Company (KHC) faces is the decrease in demand of packaged-foods, while trying to increase revenue.

Analysis
This analysis studies Kraft Heinz Company’s strategy, competitive position in the market, problems being faced, and the company’s financials.
• Opportunities: Global expansion, Growing product portfolio, Mergers & Acquisitions
• Threats: Decreasing demand, intense competition, increasing labor wages
• Strengths: Strong brand portfolio, good cash flow, global footprint
• Weaknesses: Long term debt

Alternatives
• Increase market share in developing economies, if KHC increases their market share it will put them at a competitive advantage …show more content…

Kraft Heinz Company the 5th largest food and beverage company with revenues over $26.5 billion and 26 popular brands under its umbrella has recently seen sales disintegrate from competitors that are associated with natural and organic brands (Kraft Heinz Company, 2017). This analysis studies Kraft Heinz Company’s strategy, competitive position in the market, problems being faced, and the company’s financials. KHC, an established company in the packaged-food industry, has dominated the market share with a 3.7% dividend yield, but can soon face destruction to their profitability and impose losses among competitors (KHC: Dividend Date & History for the Kraft Heinz Company, 2018). In order for KHC to remain an industry leader, they must first have a deep understanding of the pertinent factors surrounding the company’s situation (Thompson, …show more content…

The food industry is expected to grow rapidly in the future due to improving lifestyle and rapid urbanization (“Global Fast Food Market”, 2017). With this potential demand created, KHC can easily capitalize the growing foodservice industry and tailor their products to the specific demographic (Bhasin, 2018). Another strong resource KHC can utilize is focusing on nutritious products. As the foodservice industry continues to grow, KHC should further explore on expanding its product portfolio to include healthier options. Natural and organic brands, as well, as small labels buying from local farms, have become an essential part of the consumer lifestyle (Tarkan, 2015). With the increase in health awareness across the globe it has resulted in an increase in demand for nutritious and trans-fat free products (Tarkan, 2015). Growing the company’s baby food market can present another opportunity KHC can strategize to remain an industry leader. With the increase in incomes and changing lifestyle, the baby food market is growing around the globe. The global baby food market is expected to grow at a CAGR of 8% till 2019 (Markets, 2017). KHC offers a wide range of baby food and instant formula products and can benefit from the growth if they focus on this

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