Strategic Positioning and Competitive Advantage: A Case Study of Mondelez International
Overview
This case study examines Mondelez International's corporate strategy and competitive positioning in global markets. The analysis focuses on how the company leverages diversification, strategic positioning, and Porter's Five Forces to maintain profitability and shareholder value through product innovation and market expansion.
What this case study covers
- Question 1: Overview of Mondelez's strategic approach to capital investment and cost reduction
- Question 2: Analysis of competitive advantages through strategic positioning and supplier/substitution power
- Question 3: Financial performance outcomes and shareholder returns from 2012-2016
- Question 4: Recommendations for future strategy using high-impact marketing approaches
Preview
Case 21: Mondelez International
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Case 21: Mondelez International
Question 1
Mondelez's strategy focuses on helping businesses run profitable ventures across the globe. It is a technique that helps entrepreneurs to balance invested capital. Capital re-investment is critical in an organization. Therefore, the Mondelez strategy help increases investors by maintaining or increasing dividend payouts. The primary objective of Mondelez's strategy is to help businesses reduce operating costs while maximizing profit margins (Jeff, 2019). The strategy has been successful since its establishment and independence in 2007. Firstly, the corporate strategy has experienced growth through diversification. Diversification is a strategy that has helped Mondelez to enter new markets successfully. In this case, a business enters a new market by creating products that meet the needs of that particular market niche (Jeff, 2019). For example, Mondelez international understands the need of customers, and over the years, they have introduced other flavors to strengthen their corporate strategy.
Question 2
Mondelez has a unique strategy that has helped the organization win large markets. The primary competitive advantage for the organization is strategic positioning. Strategic positioning is very critical in both small-scale and large-scale businesses (CGMA, 2013). Mondelez uses supplier power and substitution powers as illustrated in porter's five forces model. The power of suppliers has helped the company to increase buying power and increase sales in the organization. Secondly, the aspect of substitution is very significant in every business (CGMA, 2013).