Term paper on competitive strategy for California Manufacturing Company's peanut butter business

• Main Author: Catilo, Jose Vicente Miguel E.
• Format: text
• Language: English
• Published: Animo Repository 1997
• Subjects: Business Administration, Management, and Operations
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/2101
• Institution: De La Salle University

The California Manufacturing Company, Inc. is one of the top 100 multi-national corporations of the country today. CMC presently is the key industry player in the peanut butter business. In 1995 it control 39.5% of the peanut butter domestic market, however in 1996 its market share declined by 3.5%. This is not quite an alarming market signal for the company, but market research shows that this decline will continue because of the growing number of new players entering the in the market. The relatively low barrier in putting this business and the simple technology involved triggered the increase of new entrants. Another fact is the advent of the consumers growing concern for healthy and nutritional food products that might affect CMC market share. Consumers are shifting to other substitute products and the consumer attitude have changed a lot. People want value for their money, better service and assurance of a total high quality product. These are some of the facts that is affecting the market at present. These pose a great threat to the objective of the company of sustaining growth in the peanut butter industry. In order for the company to lead this industry and sustain growth it should embark on two main strategies: Geographic Expansion Strategies and Focused Differentiation Strategies. To complement these strategies are the Functional Strategies which will deal with the specific objectives of the company.