Strategic Analysis of Kellogg's using Porter's Five Forces Framework

This report presents a comprehensive analysis of Kellogg's using Porter's Five Forces framework. It examines the bargaining power of buyers and suppliers, the threats of substitutes and new entrants, and the intensity of rivalry among existing competitors. The analysis highlights the impact of these forces on Kellogg's competitive landscape, emphasizing the need for strategic responses such as cost leadership and differentiation. The report also discusses the importance of branding, product quality, and promotional activities to enhance Kellogg's market position. The conclusion summarizes the company's focus on leveraging its strengths and capitalizing on opportunities to improve its competitive edge in the market.

BUSINESS STRATEGY

Apply porters five and evaluate the competitive forces to the given market sector
Porters five forces is the strategic management tool which is analyzing the industry and also increases the
profitability of the organization. Kellogg is implementing on the porters five forces which would do the
industry analysis.
Bargaining power of the buyers
Buyers want every thing form the organization, the product of the organization must include the things
which the customers are demanding and also at the low prices as well. The company must provide the
power to the customers and also provide the discounts and the offers on the products which would attract
the customers towards the company. The company must come up with the new and the innovative
products. New products of the company would attract the customers.

Cont...
Bargaining power of the suppliers
The companies which are manufacturing the products has to buy the raw material for the products in
bulk. So the suppliers which are supplying the products to the company can decrease the margin of the
profits on the raw material, through which the company would earn huge profits. Suppliers can also
increase the prices of the raw material through which the company would increase the products price and
also the company had to bear losses. The supplier is having the huge impact on the products and the price
of the product.

Cont..
Threats of the substitutes
Company is facing the threats from the substitute products of the product through which the company
had to suffer in the way of the profits. Organization could try to improve the services of the products sand
aware the customers about the substitute products of the product in the market which would result in the
customers would not buy the substitute products. Organization must also focus on the understanding the
need of the customers rather than the customers are buying the product or not.

Cont...
Threats of the new entrants
Market is welcoming the new entries in the market through which the organization is facing the
competition in the market. The competitors would also reduce the cost of the products and also provide the
products according to the need of the customer. So the organization has to work effectively and improvise
the products or come up with the new products in the market. Kellogg need to build the capacities and also
invest in research and development of the products.

Cont....
Rivalry among the competitors which are already in the market
Kellogg is also facing the strong competition of the existing competitors in the market which are
affecting the performance of the company. The organization is dealing in the packed goods because of the
types of the products the customers are easily influenced by the other factors. So the company has to
compete with the competitors in the market effectively (Bresciani, Ferraris, and Del Giudice 2018).

appropriate strategies to improve the competitive edge and market position
The company had to use the porters generic strategies which include the cost leadership, differentiation,
cost focus and differentiation focus. The organization had to deal with the implement on the cost leadership
and provide the products to the customers at the low prices. Differentiation strategy is focusing on the
unique features and the technology used in preparing the products. Cost focus is organization just focus on
the cost price and differentiation strategy is concentrating on the market and the products features.

conclusion
The company is focusing on utilizing the strengths and grab the opportunities for the company. Company
need to focus on the branding and the quality of the product which would attract the customers. The
company is focusing on the improvising the food labeling and also the company is focusing on the
sponsoring the swimming programs which includes the promotion of the products as well.