Kraft Foods International Trade Analysis Assignment Help International Trade From the international trade, the company can increase the sales, revenues, profits and can reduce the organizational
inefficiency. The company can take advantage of international trade technology. In addition, the company can maintain the cost competitiveness in the domestic market. As per assignment help experts, the biggest benefit of international trade is that the company can gain a global market share & can reduce dependence on existing markets. In contrast, there are several disadvantages of the international trade to the business organization such as: delays in payments, foreign regulations and standards & increased costs (expenses including the establishment of facilities abroad, the hiring of additional staff, traveling of personnel, specialized transport networks, information and communication technology) (Berger, 2011).
Trade -Off Considerations for Kraft Foods The company faces certain trade-off considerations, when it deals in the international market place. The manufacturing sector of the company faces exchange rate that becomes competitive to the manufactured goods in the international marketplace. In addition, Kraft Foods also faces a trade-off between tax benefits of debts and the costs of funds due to fundamental determining factor of financial structure (Keillor, 2011). It has some problems for financing its operation, when it wants to enter in international market. Another trade –off consideration is also faced by the Kraft Foods that is trade-off between consumer interests and domestic producer interests due to world competitive price.
Methods to Identify Opportunities, Threats, Viable Alternatives and Consequences Kraft Foods uses two different models one for determining its opportunities and threats that is SWOT analysis. This method finds opportunities such as operation in many fast growing food categories and international markets and competition as a threat (McLinden, Fanta, Widdowson & Doyle, 2010). Another method is porter five forces model that is used to identify viable alternatives and consequences of the company in marketplace. This method describes about the competitive advantages and alternative that may be used to fight with the competition and discus its final results.
Comparative Advantages for Kraft Food The company has been gained several comparative advantages in the selected product that is food product. It has high market size that provides the advantage of large customer base. The selected product belongs to the food and beverage industry that has a largest part in the form of dairy products. It has some specific comparative advantages in the industry. It uses the responsive business model that includes multi-location virtual organization, efficient supply chain, experienced management team and vibrant culture (Kraft Foods, 2011). Second, it has powerful and strong brand such as Lacta, Halls, Tang, Club Social etc. These brands attract more customers to buy its food products. The other comparative advantage is its strong route to market. This route to market considers deep distribution, impactful visibility and deep shopper insights.
Strategies to Enhance Competitive Position of the Company Kraft Foods uses several strategies to survive in the competitive domestic and international market. It have to adopt competitive pricing strategy in the emerging market to compete with Nestle’ pricing strategy that is a multi-domestic oriented company (Kraft Foods Inc., 2004). It also competes with its competitors by using the product quality, brand recognition, brand loyalty, marketing and advertising etc. The Substantial advertising strategy is an effective competitive strategy that is needed to sustain or develop a market position of brand. In addition, it also uses innovation and latest technology to enhance competitive position in the international and domestic market structures.
References Berger, A. (2011). Case Study – FedEx Corporation: Strategic Management. USA: GRIN Verlag. Keillor, B.D. (2011). International Business in the 21st Century: Three Volumes Praeger perspectives. USA: ABC-CLIO. Kraft Foods Inc. (2004). Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the Fiscal Year Ended December 31, 2004. Retrieved from http://www.kraftfoodscompany.com/assets/pdf/KraftAR04_10K.pdf Kraft Foods. (2011). Hitting Our Sweet Spot in Latin America. Retrieved from https://www.phx.corporate-ir.net/External.File?item…t=1 McLinden, G., Fanta, E., Widdowson, D. & Doyle, T. (2010). Border Management Modernization. Washington, USA: World Bank Publications. Get International Trade Analysis Assignment Help with assignmenthelpexperts.com From our case study help experts, you will get complete and original case study assignment help of all topics. Our case study help tutors are from US,UK and Australia. They ensure you that you will get detail company analysis case help within the deadline. You can also first check your paper then you can transfer the money in our account. So hurry up and get best business case study help from our experts at info@www.assignmenthelpexperts.com