Critical Evaluation of the Strategic Direction of Walkers

Daniel Leyton

B8271208

December 2013

Word Count: 2197

Daniel Leyton

B8271208

December 2013

Word Count: 2197

A Critical Evaluation on the Strategic Direction of Walkers

A Critical Evaluation on the Strategic Direction of Walkers

Table of Contents

Introduction2

Market Environment 2

Market Share and Value 3

Porter’s Five Forces Analysis4

Competitive Advantage6

Porter’s Route6

Determination of Strategy6

Cost Saving7

Differentiation9

Products9

Brand Management11

Conclusion13

References14

Introduction

Company Overview

Walkers was founded in 1948 in Leicester. It has since gone on to become the leading brand and manufacturer of crisps in the UK (PepsiCo, n.d.). Operating as a sub-brand of PepsiCo’s global snacks group Frito-Lay, it currently has a 56% market share in the UK potato crisps, baked snacks and popcorn market. (Mintel, 2013)

Objectives of Walkers

The company mission statement is “to create tasty crisps out of fresh potatoes and hidden ingredients to be the best in what we sell” (Ask.com, 2013). In order to attain this goal, Walkers must aim to:

* Maintain a dominant market share via a long term profit maximisation strategy.

* Co-ordinate a highly efficient supply chain and production line.

* Optimisation of the product portfolio to meet consumer needs and demands.

Purpose of Report

This report will investigate Walker’s strategic programme in the context of the market conditions. Following an overview of the market environment, Walkers’ approach to the attainment of competitive advantage will be gauged in terms of their particular strategic initiatives.

Market Environment

Market Share and Value:

The following diagram and table (Mintel, 2013) show the market shares of the UK potato crisps/chips, baked snacks and popcorn industry, based on value of sales:

The UK potato crisps/chips, baked snacks and popcorn industry has grown by 5.3% in...