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Kraft Foods (SWOT Analysis)

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“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a company’s strategic situation. The technique is based on the assumption that an effective strategy derives from a sound “fit” between a firm’s internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firm’s strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.”

Kraft Foods 

Kraft is a holding company engaged in the business of manufacturing and marketing branded food and beverages. Kraft is the world's second-largest food and beverage company with operations in over 150 countries worldwide. Strong brand image with innovation gives Kraft's products a powerful brand recall and enables the company to command a premium for its products. However, increasing competition fuelled by industry consolidation could adversely affect the company's revenues.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor

TYPE OF FACTOR

Favorable

Unfavorable

Internal

Strengths

  • Strong brand image and product innovation
  • Strong distribution network
  • Focus on research and development

Weaknesses

  • Declined profitability
  • Geographic concentration

External

Opportunities

  • Restructuring
  • Growing demand for ‘health and wellness’ products and services
  • Growth in the US coffee market

Threats

  • Fierce competition
  • Litigation risks
  • Falling US consumer confidence
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