Summary: General Mills

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How can general mills and nestle create international competitiveness by joining forces in CPW?
What is international competitiveness? A firm’s capacity to produce and provide goods and services, that are superior to its competitors internationally.
International competency; is being able to compete SUCCESSFULLY.
A joint venture between General mills and Nestle via CPW (cereal partners worldwide) will give them an added advantage compared to both the firms competing individually in the international market.
General Mills
Marketing proficiency
• Being able to build and sustain massive brand names
• Wide portfolio of brands
• Technical capabilities
Nestle
• World’s largest food and Beverage Company
• Strong worldwide organization
• Experienced
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Both GM and nestle operates in various different countries which is also an added advantage since they don’t have to begin from scratch. General Mills product quality and technology combined with Nestlé’s recognition, Brand Name and worldwide presence, CPW will be able to benefit big-time.
Evaluate the international competitiveness of CPW compared to the Kellogg Company.
CPW is the second in world’s cereal market, where Kellogg’s takes the lead. Kellogg’s was the world’s first cereal producer found in 1800, in order to serve people with special vegetarian dietary needs.
Here I use Porter’s value chain analysis; competitive triangle (customer, firm, and competitor) and benchmarking.
• Customer: Current trend is to get nutritional products for reasonable price. Inflation and economic crisis had made customers more sensitive to price. This is where they tend to look for alternatives.

• Research and development: Since there is a high demand for good quality nutritional breakfast cereals, General Mills had been investing on its R&D sector. Where, R&D sector was first introduced by Kellogg’s. In this case both the firms are pushing and investing on research and product diversity, mainly focusing on customer
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Knowing that CPW is still a new firm, it has achieved more than what it thought; especially by leading the Asian market.
Suggest how CPW can create a blue ocean strategy?
Most of the existing firms are said to be in “Red Ocean” which means that those firms compete and fight against each other to be the market leader. Whereas Blue Ocean Strategy suggests a complete different option; Blue ocean strategy simply means “creating your own market, where there is no competitors”.

According to the book “Blue Ocean Strategy” by W. Chan Kim and Renee Mauborgne, this can be divided into 4 parts. Factors to be;
• Raise: o More attention in Asian market which they already managed to penetrate through o Increase quality of products produced o Research and development
• Eliminate: o Trying to follow all strategies that Kellogg’s uses.
• Reduce: o Production

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