Case Analysis – Kraft Food’s Oreo and China

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Case Analysis Kraft Food’s Oreo and China Case Analysis In order for a business to be successful in another country besides the country that their business is based out of, a business must understand the market conditions of the particular country they are looking at investing their products in. A market conditions that a business must consider when making a move to another country includes that of how well their product will do in another country. If a business has not fully analyzed this concept, then their product may not do as well as they hoped for in that particular country and in all will have an effect on the overall revenue for the business.

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In this particular assignment, I will analyze the case of the Oreo cookie manufactured by Kraft Foods and it acceptance into the country of China. The case analysis of the Oreo cookie manufactured by Kraft Foods and it acceptance into the country of China will include a summary of the basic situation described in the case, a discussion of China’ market, a discussion of the changes in China’s marketplace over the last 20-30 years, an explanation of the efforts by Kraft Foods to enter China’s marketplace, and a discussion of the important factors that make entry into China’s marketplace challenging and potentially risky for Kraft Foods. Basic Situation Kraft Foods is one of the world leaders in the production of beverages, snack foods, dairy products, and food (Kraft Foods, 2011). Kraft Foods began its company in the year of 1903 in Chicago, Illinois (Kraft Foods, 2011). Kraft Foods has expanded its business from Chicago to New York to international over the year which has contributed much to the success of their business (Kraft Foods, 2011). Kraft Foods began the manufacturing of the Oreo cookie in 1912 (Clement, S., Jain, T., Jose, S., Koellmann, B, 2013). The basic situation in the case of the Oreo cookie manufactured by Kraft Foods and it acceptance into the country of China is how Kraft Foods did not anticipate the acceptance of their Oreo cookie in China to be unfavorable. Kraft Foods only marketed their Oreo cookie in the United States until the year of 1996 (Clement, S., Jain, T., Jose, S., Koellmann, B, 2013). In the year of 1996, Kraft Foods decided to market their Oreo cookie globally starting in China (Clement, S., Jain, T., Jose, S., Koellmann, B, 2013, para 3). However, Kraft Foods discovered that over the last 10 years, their Oreo cookie was not as favorable in China as it was in the United States (Clement, S., Jain, T., Jose, S., Koellmann, B., 2013, para 4). The cause of this unfavorable accpetance of Kraft Foods Oreo cookie in China was mainly due to the business strategy of Kraft Foods.

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