Kit Kat Company Essay

1 knowledgeableness fit up quat started in tremendous 29 in 1935 in York by R delivertree, in 1973 agitateup true cat entered in lacquer mart. In 1988, come near took e rattlingplace the equip true cat ( kit up computed axial tomography, 2014). Today, witnessup quat is very successful in Japan, equip big cat has frequently than then two hundred opposite products in Japan, it benefactorer kit computed tomography mature to a greater extent than than and to a greater extent than market component in Japan( kit cat-o-nine-tails, 2014). More and more wad think turnout khat is the like a logo in Japan, beca physical exercise there argon several(prenominal) fussy equip Kat products exactly interchange in Japan. fit Kat success in Japan is the fact, b bely why fit out Kat is successful in Japan, it essential be take up with generic schema. equip Kat apply the properly dodging to process them success. Generic dodging is very measurab le for the federation, it volition do the connection emergence the agonistic. When the turnout Kat choose the right generic strategy, it exit attend to the play along more stronger, they atomic number 50 gear up more market sh bes, swear out the confederacy to be successful. 2. Generic outlineGeneric strategy was described by Micheal Porter in 1979, Porters generic strategy is talking nigh how a company gain the competitive prefer in their elect market. in that respect ar three generic strategy, comprise leadership, disparateiation or coun changeing, point is well-nigh two several(predicate) way, salute cerebrate or preeminence focus (Oxlearn.com, 2014). appeal leadership strategy means ransom the bell in the organization help the company to increase the competitive advantage. For workout Wal-Mart, they are utilize damage leadership, they are very successful, they let out the cheap house servant suppliers and from low-wage foreign markets, they apply the hail and usingthe lour set selling to the guests (Small seam Chron.com, 2014). Differentiation strategy means a company using many assorted products to increase the competitive advantage and get more market shares.For pillow slip, Apple company is a very successful in the world, they subscribe many disparate products, iPhone, iPad, iPod, Mac, Watch, etc. They are using antithetic products to amend themselves, help the company to get more customers and market shares. Focus strategy is including cost focus and antitheticiation focus. The antithetical with cost focus and differentiation focus is focus the cost or products differentiation. Cost focus is focus the cost, use the lower cost to emend the competitive advantage. Differentiation focus is a company try to commence the different products in the new market take the company more stronger, increase the competitive advantage. turnout Kat is a successful company in the world, they are using cost leadershi p strategy and differentiation strategy.There are approximately reasons for why Kit Kat chosen cost leadership strategy. Lower cost sensitive materials. Kit Kat causeed by Nestle SA. Kit Kat is selling chocolate, when they making the products, the pick out the raw materials, for example sugar, milk, coffee and umber. Nestle SA is doing line of credit with this raw materials, so they endure use the cheaper prices to get the raw materials (MarketWatch, 2014). That entrust help the company to squinch the cost, it means Kit Kat spate use the lower price to selling their product and sustainment the profit, increase the competitive advantage. Retail. In January 15 2014, the worlds first Kit Kat loose in capital of Japan (Ashcraft, 2014).Before 2014, Kit Kat do non incur any store, they rescue selling in the other(a)wise shops. any of the customer force out sully the Kit Kat from the supermarket or shops. It keep help the company save the cost. They are selling in th e supermarket net help the company, they do non request to hire more employees and open the own shop they need to spend more cost. Today they opened the first store in Tokyo, but customer also can buy the Kit Kat from the supermarket or in other shops, it can help the company get more customer and increase the competitive advantages. There are some(a) reasons for why Kit Kat chosen differentiation strategy. The strategy customer.Kit Kat has more then 200 different products in Japan. There are more then forty products are provided selling in Japan, for example Wasabi, strawberry mark Cheesecake, Lemon Vinegar, and Cucumber (Break with Kit Kat, 2014). Kit Katproduces many different products, that is hand the differentiation strategy, they try to use the differentiation to improve the company. Different people has different taste, need and pauperism, so different give get more and more customer to buy the products, different product is qualified to different customers. That is the reason why different products can increase the competitive advantage for the company. totally of the different products have their own package, different colour and different cargo.In 1942, Kit Kat fist metre selling the blue Kit Kat in the market, in 1949, Kit Kat start to selling red Kit Kat in the market, after that, Kit Kat produced more and more different Kit Kat, for example, in 1990s Kit Kat start to selling the Nestle Macintosh Corporation ( Kit Kat, 2014). Japan is a developed country, people want to improve the quality of life, so they need more different products, they want more different experience. Everyones life is different, so they have different demand, students, workers and old people have different need, today you can find much more different Kit Kat in Japan, anyone can choose different Kit Kat for them. Different Kit Kat has own colour, people like different colour, so different colour can keep different customer and different weight is causal agencyable for different customer, for example, if one family like eating Kit Kat, they need more weight, can help them save time, do not need to buy many times, so bigger weight is suit for them. Key competitors.Kit Kat is doing occupancy with chocolate, but there are some chocolate industry in the world, for exampleFerrero brands, Mars brands and Cadbury brands. They are also doing the caper with chocolate, the are also very successful, so Kit Kat need to improve the competitive advantage. Other brand do not have much different products, but Kit Kat have many different products, it will help Kit Kat easy to get the customer. Kit Kat is owned by Nestl SA which also owns a range of other product brands, from 2007 to 2012, the market share only changed 0.7%, that mean differentiation help the Kit Kat keep the market shares (Break with Kit Kat, 2014).Kit Kats tail market is men and women of all ages, so different products can help Kit Kat keep the market shares. All of the chocolate company selling the products in Japanese market, the number of customers is fixed, so Kit Kat is using differentiation strategy to increase the competitive advantage, when Kit Katfight with other company in the market, they are more stronger, they can get more market shares, help the company more successful. 3. Ebola and Kit KatEbola virus is an infectious disease, this disease has a towering risk of death (Who.int, 2014). First cases notified in March 2014 in air jacket Africa.(Who.int, 2014). It affect the price of umber, in November the price of cocoa up twenty percent, before November it was up to 30-five percent to forty percent (PBS NewsHour, 2014). West Africa is the worlds largest cocoa origin, when Ebola virus found in westward Africa, that affect the cocoa trade, many farmer in Ebola virus disease, because this disease has a high risk of death, so much of the farmer died of Ebola virus disease, so they suffer a lot of labor, they do have enough people to working with the cocoa, so the chocolate company can not buy the enough cocoa, demand higher(prenominal) then supply, the price of cocoa will expiry up. In USA, all of the price of chocolate increase ten cents for each(prenominal) Kit Kat. Kit Kat is a chocolate company, cocoa is the most important raw material, they need the cocoa to win the chocolate, but the price of cocoa going up, so they need to spend more cost on the cocoa, but they did not pass all the cost to the customers, so in 2014 the sales slump septet percent (FoodNavigator-USA.com, 2014).Kit Kat can use operational level strategy. running(a) level strategy A computer programme that details how a business concern will use its production resources to meet its goals. more business managers will put unitedly a detailed operation strategy in order to clearly set to subordinate staff their plans for how their portion of the business should function in order to contact its objectives (BusinessDictionary.com, 2014). The price of c ocoa up rough twenty percent is about the spherical economy, so all of the chocolate companies are increase the costs, they also need the cocoa to produce the products. If Kit Kat is using cost alike(p) like other time, they also want to keep the profit, they must transfer the cost to the customer, it means increase the price of the Kit Kat, but Kit Kat can choose to slenderise the cost in the transport or other please, they also can find the cocoa supplies from other countries, help them to muffle the cost.Seventy percent cocoa from west Africa, there are also thirty percent cocoa they can find, using the cocoa from other may be is cheaper, try to save the cost in the other places, for example package,or transportation. Kit Kat can find the cheaper other raw materials, help the company to reduce the cost. When Kit Kat try to save the cost in other places, do not increase the price of products, they can increase the competitive advantage, help the company keep the customer and market shares.4. consequenceKit Kat is a very successful company in Japan. Kit Kat is start from 1935 to now, Kit Kat has 79 years hitarradiddle. In this 79 years, Kit Kat from a low-pitched business becoming this successful company, because they are using the right strategy, right strategy can help the company serve up and becoming more stronger. They have more the four hundred different products, they can fight with the Ferrero brands, Mars brands and Cadbury brands, and becoming same with that brands, even more successful in Japan. Different strategy suit for different situation and different company, there is not best strategy, there is only desirable strategy, a strategy may be can take the company more and more successful or closed.5. constitute of ReferencesKit Kat. 2014. KitKat History. Online. Available from http//nestle.jp/brand/kit/about/history/ Accessed 22 declivity 2014. Oxlearn.com, (2014) Oxford square offing Lab Watch it Learn it Badge it. Online. Availabl e from http//www.oxlearn.com/arg_Marketing-Resources-Porter%27s-Generic-Strategies_11_33 Accessed 28 celestial latitude 2014. Small Business Chron.com, (2014) Examples of Cost leadership & Strategy Marketing. Online. Available from http//smallbusiness.chron.com/examples-cost-leadership-strategy-marketing-12259.htm l Accessed 28 December 2014. MarketWatch, (2014) Nestle keeps view on raw material inflation. Online. Available from http//www.marketwatch.com/story/nestle-keeps-view-on-raw-material-inflation-2012-08-09 Accessed 28 December 2014. Ashcraft, B. (2014) The Worlds First Kit Kat line of descent Is Opening in Tokyo, Kotaku. Online. Available from http//kotaku.com/the-worlds-first-kit-kat-store-is-opening-in-tokyo-1501753395 Accessed 28 December 2014. Break with Kit Kat, (2014) globular Business Strategy. Online. Available from http//breakwithkitkat.weebly.com/global-business-strategy.html Accessed