Kraft Essay Example | Topics and Well Written Essays - 500 words

Kraft - Essay Example Kraft Foods Inc. has a reputable financial history as depicted from the previous year’s revenues. For instance, in the year 2013 ending, the company registered net revenue of $4595 million and in 2012 ending it reported net revenue of $4492 million (Kraft Foods Inc., 1). The firm’s key profitability drivers include the diverse category of products, a superior brand assortment, significant coverage in the Northern America, a wide-spread reputation for the most quality products in the food industry and a strong foundation in innovation and use of the latest technology in its operations, a deep knowledge about consumer’s interests, a long-lasting relationship with its major retailers and suppliers and an experienced team of managers who are solely driven by the firm’s core goals or rather aims in achieving the best (Kraft Foods Inc., 1). The substitute products in this industry are hot drinks such as tea, all the beverages and beverages that have caffeine, Cola. Thus, all the firms in this industry are good producers of the above mentioned products. This is due to the high number of nations which are chief coffee exporters, alternative products as a result of different types of coffee beans and insufficient money supply due to the impossible forward integration for suppliers. Thus, the farmers can combine forces but the wealthier will always influence the market. This industry or rather market has an oligopoly structure whereby there are a few globe competitors such as Nestle, Kraft Foods and Sara Lee. In addition, the industry has a relatively smaller regional roasters and intense competition from the final products of these firms. This is due to product differentiation that results to a number of flavors in coffee