Barilla Case Study: Principal Challenges And Oportunities In Business
Barilla Business Case
Group 6
Principal challenges and opportunities for Barilla
In the 90s the focus of big food companies was on aggressively conquering supermarkets’ shelf space with the aim of increasing the depth and breadth of consumers’ spending. The 21st century food purchasers, however, seem to possess profound nutrition knowledge. They consider the quantity of fats, sugars and preservatives. This situation creates a unique opportunity for Barilla to become the worldwide Ambassador of Mediterranean Diet by gaining First Mover Advantage in new geographical markets with meals and bakery solutions.
While financial crisis and floating prices of commodities, affecting both consumers’ spending behavior and companies’ profitability, represent the biggest threats, as Ambassador of Mediterranean Diet, Barilla’s main challenge is to communicate Mediterranean values to its target markets: North America, with health and obesity-related diseases concerns, and Asia Pacific, with growing Western culture curiosity and per capita food spending.
Competitors
The global external environment is complemented by multinational food giants such as Kraft, Unilever, Nestle, and American Italian Pasta Company in US and Hebei Hualong in China on local scale. While domestic players enjoy a price advantage, the multinationals Unilever and Nestle gain competitive advantage by customization while Kraft and General Mills exploit a strong diversified brands portfolio. By exploiting its R&C, Barilla should take a different approach: growing internally and not by M&A emphasis, undertaking a stealth positioning in its market by leveraging relatively stable R&C.
Resources and Capabilities
Exploiting key strengths is a more direct way of setting itself apart. Its long history and heritage of representing the Italian gastronomy in the world, its values of “feed others as you feed your own children” encourage Barilla to promote Italian and Mediterranean way of
Group 6
Principal challenges and opportunities for Barilla
In the 90s the focus of big food companies was on aggressively conquering supermarkets’ shelf space with the aim of increasing the depth and breadth of consumers’ spending. The 21st century food purchasers, however, seem to possess profound nutrition knowledge. They consider the quantity of fats, sugars and preservatives. This situation creates a unique opportunity for Barilla to become the worldwide Ambassador of Mediterranean Diet by gaining First Mover Advantage in new geographical markets with meals and bakery solutions.
While financial crisis and floating prices of commodities, affecting both consumers’ spending behavior and companies’ profitability, represent the biggest threats, as Ambassador of Mediterranean Diet, Barilla’s main challenge is to communicate Mediterranean values to its target markets: North America, with health and obesity-related diseases concerns, and Asia Pacific, with growing Western culture curiosity and per capita food spending.
Competitors
The global external environment is complemented by multinational food giants such as Kraft, Unilever, Nestle, and American Italian Pasta Company in US and Hebei Hualong in China on local scale. While domestic players enjoy a price advantage, the multinationals Unilever and Nestle gain competitive advantage by customization while Kraft and General Mills exploit a strong diversified brands portfolio. By exploiting its R&C, Barilla should take a different approach: growing internally and not by M&A emphasis, undertaking a stealth positioning in its market by leveraging relatively stable R&C.
Resources and Capabilities
Exploiting key strengths is a more direct way of setting itself apart. Its long history and heritage of representing the Italian gastronomy in the world, its values of “feed others as you feed your own children” encourage Barilla to promote Italian and Mediterranean way of