MGT599 MoD 2 TD WEEK 2 Essay Example | Topics and Well Written Essays - 1250 words

MGT599 MoD 2 TD WEEK 2 - Essay Example This paper mainly tries to accomplish a brief analysis of the industry of food. However, in order to do so, PEST analysis and Porter’s Five Forces model are used. With the help of these analytical techniques, the recent opportunities and threats are evaluated about the food industry. After analyzing the opportunities and threats, the ways in which, these are effective for the Kraft Food Group is also evaluated within this paper. Moreover, in what ways, the Kraft Food Group might mitigate the risks and threats presented by the political, social or economic factors as well as threat of new entrants are also evaluated, so as to enhance its position and demand in the market among many other rival players. Threat of Entry: the threat of entrance of new players within the industry of food is quite tough due to excess capital requirements. In order to present differentiated products, high technology machineries are required that are generally out of the budget to the new entrants (Enz, 2009). Moreover, if the new entrants fail to offer, high quality products, then the customers may not prefer these products and their market share and profitability may not be increased (Ma, 2014). However, due to presence of these barriers, the rate of new entrance is low and this act as one of the strengths for the Kraft food group that offers a high impact on growing market share of the company. Rivalry: the extent of competitive rivalry among the existing players of food industry is extremely high (Kotler, 2008). However, in order to mitigate such rivalry, most of the existing players such as General Mills and Nestle always try to offer high attention over its research and development department to introduce new products frequently. This might prove effective for the existing players of food industry to amplify its demand and position in the market (Jones & George, 2004). However, because of high attention over research department, both of these organizations