Our group will analyze Kit-Kat’s strategies as a multinational firm in the confectionery industry. First, we will introduce the five forces that influence the industry and how their interactions provide opportunities or threats for Kit-Kat. Second, we will demonstrate Kit-Kat’s corporate strategies and competitive advantages against its major competitors, such as Ferrero Rocher. The discussion will focus on how Kit-Kat obtained its competitive advantages in such an aggressive industry. We believe its global awareness, creativity, diverse penetration, product differentiation and economies of scale are the major sources of its competitive advantages.
Examples of market penetrations:
Japan (Created a marketing campaign with the national post office) Malaysia (Created a promotion in Kuala Lumpur International airport, caught tourist’s attention) Hong Kong (Created Kit Kat McFlurry desert with McDonald, only provided in Hong Kong) Kit Kat goes Fairtrade (beyond marketing strategy, psychological appeal)
In addition, we will also identify the potential drawbacks that may hinder the growth of company such as the increasing price of raw materials and the use of genetically modified ingredients and palm oil. The increasing awareness of health issues will also drive profits down unless the company adapts to a new business model.
Last but not least, regarding the current criticisms and challenges that Kit-Kat encounters, our group will present a few remedies to these drawbacks. These recommendations are expected to be able to merge into the existing strategies and help Kit-Kat to achieve sustainable growth in the long run.
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