Strategic Management in Campbell Soup: A Detailed Analysis Report

This report analyzes Campbell Soup's strategic management, focusing on the application of generic strategies. It begins by defining and explaining the concepts of cost leadership, differentiation, and focus strategies, as well as how they are used in the context of Campbell Soup. The report then explores whether Campbell Soup should combine these strategies, weighing the potential benefits and drawbacks of doing so. Finally, it discusses various means by which Campbell Soup could diversify its business, examining the pros and cons associated with each approach. The analysis includes references to academic sources to support the arguments made and provides a comprehensive overview of the company's strategic positioning within the market.

Running head: STRATEGIC MANAGEMENT IN CAMPBELL SOUP
STRATEGIC MANAGEMENT IN CAMPBELL SOUP
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1STRATEGIC MANAGEMENT IN CAMPBELL SOUP
1. Briefly describe the three generic strategies - overall cost leadership,
differentiation, and focus - and which of these are used or needed at Campbell
Soup.
Michael Porter first suggested the three generic strategies in 1985. These can be
applied to products and services in almost all industries.
The main goal of the Cost Leadership strategy is being the best in terms of pricing in the
respective market or industry (Banker, Mashruwala & Tripathy, 2014). The two major
processes involved include reduction of costs by challenging the respective average pricing
and setting lower pricing through increase in market share.
The Differentiation Strategy involves making the concerned product or service more unique
and attractive than its competitors (Banker, Mashruwala & Tripathy, 2014). This will
increase customer brand recognition following features such as durability, functionality, and
other features (Valipour, Birjandi & Honarbakhsh, 2012).
The Focus Strategy involves concentrating on a niche market and then developing a specific
and low-cost product particularly for the customers of that market (Yan & Chew, 2011).
Campbell Soup follows both the differentiation strategy and the cost leadership strategy as
their product differs from other canned counterparts and has been consistently so since the
brand opened.

2STRATEGIC MANAGEMENT IN CAMPBELL SOUP
2. Should Campbell Soup combine the generic strategies of overall cost leadership
and differentiation? Why or why not?
It is not suggested that all the generic strategies be combined in any industry as they
might clash with each other over ideologies and methodologies. For example, cost benefits
might hamper focus strategies and niche markets. For Campbell soup company, if they are
following the generic strategies of cost leadership and differentiation strategy, combining
wither of them with the focus strategy might bring down the overall market share, given that
they are already catering people with a range of products. A specific niche market for a
global brand like Campbell Soup Company would therefore be detrimental for the market
share.
3. Discuss some of the various means that Campbell Soup could diversify. What are
the pros and cons associated with each of these?
Some of the means through which Campbell Soup could be diversified is by
increasing the variety of products which would draw in more customers, thereby increasing
income but would bring the brand value of the company in question, given its namesake;
expanding market share by introducing their brand in several other niche markets.

3STRATEGIC MANAGEMENT IN CAMPBELL SOUP
References.
Banker, R. D., Mashruwala, R., & Tripathy, A. (2014). Does a differentiation strategy lead to
more sustainable financial performance than a cost leadership strategy?. Management
Decision.
Valipour, H., Birjandi, H., & Honarbakhsh, S. (2012). The effects of cost leadership strategy
and product differentiation strategy on the performance of firms. Journal of asian
Business strategy, 2(1), 14.
Yan, S., & Chew, D. A. (2011). An investigation of marketing strategy, business environment
and performance of construction SMEs in China. African Journal of Business
Management, 5(6), 2396.