A powerful strategy- The path to growth strategy has strengthened the companies focus around it’s leading brands, Restructuring has produced savings of $3.4 billion,
Strong Brand name/ image of products- A wide range of leading brands in its products portfolio such as; Dove soaps and shampoo, Lipton teas, Slim-fast, Ben and Jerry’s ice-cream.
The acquisition of Ben and Jerry’s ice-cream The acquisition of Best foods
The Acquisition of Slim-fast has resulted in entering a new industry
Sales Growth Decreasing
Disadvantage of having a multicountry strategy–
Expanding into new geographic markets-more countries, like Europe, where the weight loss/management trend is also taking hold.
Expanding the product line
Product line- could introduce standardized, low price product offerings in order to compete with the private-in house brands’ offered by supermarkets and for the developing countries
Increased intensity of competition- from other global food and household brands with similar product portfolio’s and between brand name products and private label in house products
Competitors are Strengthening their resources-has been a recent increase in mergers and acquisitions in recent times
Likely Entry of potent new competitors- large, high profile competitors may take advantage
Demographics- Constant changing consumer preferences. E.g.
health’ and preventing diseases like diabetes, obesity and heart disease. Household sizes are decreasing.