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documents in English
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5 pages
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  1. The industry environment(s) Heinz operates in.
    1. The stage in which the food industry is located.
    2. The level of sales.
    3. the Porter's five forces.
    4. Barrier for new entrants.
    5. Rivalry among established companies.
  2. Heinz's attempt to develop a competitive strategy to protect its business-level strategy.
    1. The major market of Heinz.
    2. The strategy of Heinz.
    3. The Porter's five forces.
    4. The relationship with the suppliers.
  3. New strategies for Heinz to pursue to increase its competitive advantage.
  4. Bibliography.

Heinz is one of the most profitable companies operating in the food processing industry. This essay will try to describe the industry and environment of this company. Then, we will see how the competitive advantage has been developed within this industry. By reading the Vision of the firm, we can conclude that Heinz operate in the "food processing industry". Thus, Heinz wants to become the leader in the food industry, by providing the "best value". In this industry, the firms are satisfying the needs of a great part of the population, who want to have safe and good food. The value of the products, they are delivering is function of the way they transform raw ingredients into food for consumption by human. Moreover, the products of this industry are often quickly perishable, thus they have to use process and technics that permit to prolong the lifetime of their products.

[...] - In other countries, Heinz is also well known for the soups, beans and pasta. This fame, make of Heinz the leader among most of these markets. - The infant food, an other domain where Heinz accomplishes superior capacities and great sales, represent an important market. Therefore, the strategy of Heinz has been since the beginning to provide more and more products, related with the food processing industry, to offer a large quantity of products to the customer. Until the years 2000, the firm achieves a lot of acquisitions or launch of new brand. [...]


[...] How has Heinz attempted to develop a competitive strategy to protect its business-level strategy? Heinz is a key player in the food processing industry, and operates in a large number of markets, corresponding to different business level. We have to know first that the portfolio of Heinz's activities and product is very wide, and includes sauces (Tomato Ketchup is the most famous product), condiments, snacks, soups, can (Beans) and pasta, frozen meals, infant feeding, and even pet food. We can read on the web site that starting from a unique product, Heinz achieve to create a coherent portfolio: ?from one product to a dozen, made famous through the 57 Varieties slogan at the turn of the century to several thousand today?. [...]


[...] Furthermore, Heinz encourages the diversity of its suppliers, and a strong policy has been established to select and gain more from the suppliers' competition. The type of relationship established with the Heinz's suppliers and buyers are difficult to attain, and this lead to create a high barrier to entry. Moreover, financial capacities to product, deliver and promote the products in the food processing industry are important, keeping Heinz away from new entrant rivals. What new strategies would you advise Heinz to pursue to increase its competitive advantage? [...]

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