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Posted on April 12th, 2014, by

Using the results of Porter’s five forces analysis and PEST analysis, it is possible to identify key opportunities and threats for Mondelez International Inc. The major opportunities of the company are:

1)    expansion into emerging markets and niche differentiation in these markets;

2)    the focus on international market after the spin-off can help overcome the main international competitor – Nestle S.A.;

3)    preferences towards healthy and nutritional food products can be used to further differentiate and increase sales;

4)    purchase of smaller companies in the growing economies can stimulate international expansion;

5)    use of mobile and social marketing to increase customer loyalty.

There also are certain threats, caused by the industry specifics and general changes of the market environment. These threats are:

1)    intensive competition and similar product offerings by the competitors;

2)    tightening international regulations might hinder growth and increase costs of expansion;

3)    supplier prices over the world are likely to increase;

4)    rising demand for organic food might affect the sales of other foods, especially confectionery;

5)    litigation cases related to obesity and food supplements might affect brand name and incur high costs.

Conclusion

Basing on PEST framework and Porter’s five forces analysis, key opportunities and threats for Mondelez International Inc. emerging from external environment were identified. Although the competition in the industry of food manufacturing is very intensive, there is plenty of room for growth at the world market. Food consumption is increasing every year, and despite the decrease of the pace of growth, the demand for food and for confectionery products in particular is increasing. The results of the analysis can be used in strategic decision-making and strategy planning at Mondelez International Inc.

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