A global producer of soup company as
Campbell Soup is a marketer of branded convenience food products
with high quality. The firm holds the strategy to achieve a
sustainable competitive advantage in the food processing industry
with an appropriate strategic formulation that drives the mission,
vision & goals of the firm.
- The Campbell soups
diversification strategy is explained below:
- The firm operates four product
divisions that are expanded into its products to microwavable soups
to the consumers to make it more convenient in preparing without
the container. The firm uses the related diversification of
multi-product strategy which diversifies the business into
several products producing & expand the overall market
- The firm had also tried to use the
unrelated diversification in one of the management
team to expand the product line to increase the revenue &
profits. The aim of the firm to use this strategy is to acquire the
firms that were positioned to capitalize on the trend of consumers
and also involved with many other types of business.
- The failure of the above-unrelated
diversification of the firm was they could not manage the core
product divisions which got changed. By the same, the company
headquarters personnel couldn't manage the financial controls that
were in need to control the internal capital markets at large.
- Then the new management of the firm
decided to use the constrained strategy to create
the value by operational relatedness. The focus here was to shift
the core competencies of the firm that lead the competitive
advantage to start the value chain analysis that identifies the
transfer skills ability to manage the expertise on value chains and
exploit the transfer activities by integrating it.
- The firm has used both the
horizontal and vertical based integration
corporate strategies to boost thier revenues, profit & share of
the market. Above are the evidence of their diversification
strategy that clearly explains their integration of the activities
to make the firm sustainable as well as competitive.
- Following are the evidence
that the firm has gone whether through M&A deal
(mergers/acquisitions), joint ventures/strategic alliances or
internal development which can be explained below:
- External Acquisitions &
partnerships at Campbell soup- Here it is the
evidence that the firm is trying to create the external development
as able to increase the presence in the market throughout its
product line. The evidence to this is the firms backing &
snacking segment is positioned to increase due to the firms recent
acquisition of Ecce Panis, a producer of artisan bread that allows
the Campbells to enter into the artisan bread thriving market.
- There is evidence that the firm has
gone into internal development through management
restructuring issues by taking various initiatives to
improve operational efficiency through closing/opening some of the
food brands in Australia & Canada to streamline the firms
- Another evidence of the internal
development of the firm is workforce
diversification as the Campbell focuses on diversity &
inclusion strategy which states five specific goals to develop as
by establishing the firm leadership support with accountability,
linking the diversity to inclusion for performance management,
integrating it to talent management, to use it for inclusion into
business practices & thereby educate/train the advance diverse
groups of personnel into the firm with inclusion.
As mentioned strategic analysis is
applicable mostly to strategic management at the various business
unit levels of large firms as MNC's such as Campbell soup. The
strategy at business levels & corporate levels all defines the
core competencies the firm has leveraged with sound strategic
formulation by managing its portfolio of the business at large.
Thus, the firm has clearly tried to manage thier overall strategic
issues by implementing it in various means to be sustainable as
well as competitive at various means to earn the maximum share in
the global market.