Applying Porter's Five Forces: Kellogg's Business Strategy Evaluation

This report provides an analysis of Kellogg's business strategy, applying Porter's Five Forces model to evaluate the competitive forces within the market sector. It examines the threats of new entrants, highlighting strategies like price reductions, product innovation, and cost efficiencies to maintain a competitive edge. The report also assesses the bargaining power of suppliers and buyers, emphasizing the importance of strong supply chain management and customer-centric approaches, such as discounts and new product development. Furthermore, it addresses the threats of substitute products and the increasing rivalry among existing competitors, advocating for collaboration and customer service improvements to enhance Kellogg's market performance. The conclusion summarizes the key strategies for improving the company's performance, focusing on customer and employee satisfaction, and effective responses to market competition. The report also highlights the importance of PESTLE and SWOT analysis in this business strategy.

BUSINESS STRATEGY

Apply porters five and evaluate the competitive forces to the given market sector
Porters five forces model would analyze the industry and the company strategies
which would focus on the market as well.
Threats of new entrants
New entrants of the market is concentrating on the products which are
processed a packed accordingly. Kellogg would lower the prices and reduce the cost of
the products which would attract the customers towards the company. Company would
make the effective measures for fighting the competition in the market. Organization
would innovate the products and provide the best products to the customers. Company
would also build the economies that it would also lower the cost of the product on per
unit. Kellogg can spend the money on the research and the development of the
product.

Cont...
bargaining power of the suppliers
Company need to make the products, so the company need to buy the raw material form
the suppliers which are supplying the raw products to the company. Through these raw material
the products are made. If, the suppliers are increasing the price of the raw material and the
company need to would not increase the price of the products immediately. So it would affect the
profits of the company. Company would efficiently tackle with the problems of the supplier by
forming the strong chain management. It would have the effect on the product designs so the
prices of the raw material could be shifted form one another (Kravchenko, and et.al., 2018)

Cont..
bargaining power of the buyers
customers are always demanding more form the company and also at
the low prices which would affect the company and the sales as well.
Company would overcome these problems by giving the discounts and the
offers to the customers. Kellogg would also build the strong base of the
customers. Company would innovate the new products which would also not
increase the competition in the market (Eskerod. and Jepsen, 2016).
Customers in the market are provided with the best quality of the products as
well. New products of the company would also attract the customers and the
customers are also waiting for the offers and discounts on the products.

Cont...
Threats of substitute the products and the services
New products and the services introduced in the market also have the threats of the
substitute products which are sold in the market on the name of the company. These factors are
affecting the sales of the company and also the goodwill of the company is affected in case of the
customers are not satisfied with the products quality. The substitute products which are sold in the
market are also sold at the low cost which is attracting the customers as well. The company must
look after the organizations which are providing these type of the products.

Cont....
Rivalry among the existing competitors
Competition is increasing in the market which would also increase the problems for the
customers. Due to the rivalry among the companies the customers are provided with the best
products at the low cost. It is affecting the performance of the company in the market. Company
must collaborate with the competitors for the large market and not concentrate on the small
market.

Strategies which would improve the competitive edge
Kellogg must concentrate solving the problems of the customers and also got the price of the
product according to the customers so that they would buy the products. Company would try to
bring innovation in the existing products so that it would attract the customers. Organization must
look after improving the customer services (Edwards, and et.al., 2019). Company must also form
it own strategies which would increase the productivity and the profits of the compan

CONCLUSION
The report is stating about the business strategies used by the Kellogg for improving the
performance of the company. The company need to work according to the customers and the
employees. Kellogg has done the pestle and the swot analysis and also the factors which are
affecting the performance of the company are evaluated as well. The company need to work
efficiently and also the company is using the strategies to attract the customers. Due to increase in
the competition in the market the company need to work efficiently and perform the work
accordingly.