Ch. 2: Competitive Advantages Derived from the External Environment

Kraft Heinz Company has a strong global presence, and thus is subject to a variety of external environmental factors. In the United States, however, the packaged food industry has recently been affected by changes in consumer demand as consumers look for healthier options and avoid the heavily processed foods that were once steady revenue drivers for companies like Kraft Heinz. Kraft Heinz Co. is adjusting to the new trend and creating competitive advantages by introducing products that emphasize natural and organic ingredients.

To appeal to the ingredient-conscious consumer, Kraft Heinz has introduced an organic version of their Capri Sun fruit drinks. The company has also been proactive at removing all artificial flavor, colors, and preservatives from Kraft Mac & Cheese dinners. According to an article published by Triblive, the Tribune-Review Newspaper of the Western Pennsylvania/Pittsburgh Area, "the world's fifth-largest food and beverage company has surprised some observers with early success lifting sales during a challenging time when many of its peers have struggled to find growth." It is evident Kraft Heinz's strategic decision to introduce new 'healthier' products has proven to be effective.  I believe the Company has done an excellent job thus far in adapting to and capitalizing on the new external environmental trends. By remaining cognizant of what is happening in the world around them, the Kraft Heinz Co. has planted the seeds for a potentially sustainable competitive advantage within their diverse product lines.