Kraft Strategic Report

Strategic Report for The Kraft Corporation

Jordan Hathaway Elia Mrak-Blumberg Edward Wexler-Beron April 4, 2006

TABLE OF CONTENTS EXECUTIVE SUMMARY............................................................................................ 3 COMPANY BACKGROUND ..................................................................................... 5 COMPETITIVE ANALYSIS ..................................................................................... 8 INTERNAL RIVALRY .................................................................................................... 9 ENTRY ........................................................................................................................... 12 SUBSTITUTES AND COMPLEMENTS ........................................................................ 13 SUPPLIER POWER...................................................................................................... 15 BUYER POWER............................................................................................................ 17 SWOT ANALYSIS ..................................................................................................... 18 FINANCIAL ANALYSIS ......................................................................................... 20 STRATEGIC ISSUES AND RECOMMENDATIONS .................................... 29

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Executive Summary

Throughout its history, the Kraft Corporation has established its product portfolio through internal innovation and acquisition. Today, Kraft is the largest producer of consumer food products. Kraft’s portfolio contains a host of well established brands— Oreo, Nabisco, Kool-Aid, Maxwell House, Oscar Mayer, Velveeta, and numerous others. The industry to which Kraft belongs is defined as large producers of food and beverage products. Companies in this industry generally operate domestically as well as internationally, in both developed and...