Campbell Soup Company
Campbell Soup Company is a global food company based out of Camden, NJ. The company produces a variety of products split into different divisions: simple meals and beverages, snacks, and fresh divisions. With annual sales of $8 billion, Campbell is a worldwide brand offering distinct products in different geographic regions around the world (“About Campbell’s-Who We Are”).
External Environment - Five Forces Analysis
Threats of New Entrants: The threat of new entrants in the processed food industry is quite low. There are multiple existing companies in the industry, which deters potential entrants. Market share is tough to obtain and the current competition has acquired fair shares within the industry. Current food processing companies also enjoy the benefits of brand awareness, industry experience, established supply chains, and other competitive resources.
Bargaining Power of Suppliers: The bargaining power of suppliers is low. A majority of the ingredients required by the processed food industry has been commoditized. Suppliers to this industry are flexible and relatively …show more content…
Although soup is at the center of their business Campbell has been expanding into packaged fresh foods and simple organic meals for children ("About Campbell's - Who We Are"). They offer a range of high-quality food items at lower prices than what a consumer would expect to spend on a takeout meal. Its food manufacturing plant in Napoleon, Ohio is the perfect example of a flexible manufacturing system used to keep costs low, while also providing innovative solutions to the company (Team). Campbell’s current strategy for the fiscal year is to elevate trust in their products, build digital capabilities, continue to diversify their product offerings, and to expand their presence in developing markets (“Campbell Outlines Key Strategies for
Campbell Soup Company is a global food company based out of Camden, NJ. The company produces a variety of products split into different divisions: simple meals and beverages, snacks, and fresh divisions. With annual sales of $8 billion, Campbell is a worldwide brand offering distinct products in different geographic regions around the world (“About Campbell’s-Who We Are”).
External Environment - Five Forces Analysis
Threats of New Entrants: The threat of new entrants in the processed food industry is quite low. There are multiple existing companies in the industry, which deters potential entrants. Market share is tough to obtain and the current competition has acquired fair shares within the industry. Current food processing companies also enjoy the benefits of brand awareness, industry experience, established supply chains, and other competitive resources.
Bargaining Power of Suppliers: The bargaining power of suppliers is low. A majority of the ingredients required by the processed food industry has been commoditized. Suppliers to this industry are flexible and relatively …show more content…
Although soup is at the center of their business Campbell has been expanding into packaged fresh foods and simple organic meals for children ("About Campbell's - Who We Are"). They offer a range of high-quality food items at lower prices than what a consumer would expect to spend on a takeout meal. Its food manufacturing plant in Napoleon, Ohio is the perfect example of a flexible manufacturing system used to keep costs low, while also providing innovative solutions to the company (Team). Campbell’s current strategy for the fiscal year is to elevate trust in their products, build digital capabilities, continue to diversify their product offerings, and to expand their presence in developing markets (“Campbell Outlines Key Strategies for