3G Capital arrived on the scene over a decade ago when it started buying old school American food companies like Heinz and Burger King. It became the darling of Wall Street when it was praised by Warren Buffet who ultimately invested heavily with 3G. 3G's crown jewel, Kraft Heinz, has been struggling with poor results over the last couple of years.
What is the correct business level strategy that Kraft Heinz should be implementing in today's marketplace (a differentiation strategy, a cost leadership strategy or a blue ocean strategy)? Explain your answer.
Both Kraft and Heinz are famous companies in america whose brands are well known. Kraft for its cheese and heinz for its ketchup's. They also have various other brands under their umbrella. These are know brands and americans have been using these for years amd have grown to be associated with these products. Therefore, it would make sense if the correct strategy would be a differentiation strategy for the companies.This is because many people have associations with these products from their childhood and they will willingly pay a bit more for these products.Therefore, cost leaderships is not a consideration for well known brands.They can sell these at the same price or a bit more than others. Since their sales volume are also much more than competitors, their cost to produce will be less and hence a bit of premium pricing will let it earn more than others.
3G Capital arrived on the scene over a decade ago when it started buying old school...
3G Capital arrived on the scene over a decade ago when it started buying old school American food companies like Heinz and Burger King. It became the darling of Wall Street when it was praised by Warren Buffet who ultimately invested heavily with 3G. 3G's crown jewel, Kraft Heinz, has been struggling with poor results over the last couple of years. What affect did their strategic approach have on the culture at Kraft Heinz and what role did that have...